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China's Record Trade Surplus + Anti-Corruption Campaign + Risk Reduction

China's Record Trade Surplus + Anti-Corruption Campaign + Risk Reduction

 


The facts: Xi Jinping and officials at the January meeting of China's top anti-corruption authority, the Central Commission for Discipline Inspection (CCDI), pledged to fight corruption at all levels in 2025, from senior officials to local administrators. But overbroadening efforts, seen by observers as a way to consolidate power and keep rivals in check at a time of resource scarcity, could paralyze those tasked with making those moves. The financial sector, state-owned enterprises, energy, tobacco and infrastructure projects, pharmaceutical industry, medical services and higher education were all cited as areas requiring further investigation. In 2024, authorities investigated 58 senior officials, many of whom were at vice-ministerial level or above. Now, the CCDI wants to hold high-ranking Communist Party cadres and local officials accountable to strengthen public trust.

What to watch: Investigations are increasingly targeting people who failed to implement policy at the highest level and who demonstrated disloyalty to Xi and the Communist Party (CCP). CCP members and officials are governed by the CCDI and its attached State Supervision Commission, whose investigative powers have recently been expanded. The suspects face long detention and heavy penalties. Because central goals and local realities, such as lack of funding, often conflict, authorities have said they will strengthen political oversight of recent economic stimulus measures and policy programs. Central. Last year, for example, reports showed that local governments imposed arbitrary fines on companies seeking to raise funds, hampering efforts to promote the private economy.

MERICS analysis: Continuing anti-corruption campaigns increase pressure on executives and civil servants to be more accountable for their actions, according to Katja Drinhausenhead of the Politics and Society program, MERICS. But high expectations and limited resources could persuade many that inertia is safer than proactively implementing party goals.

Media coverage and sources:

Sources

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2/ https://merics.org/en/merics-briefs/chinas-record-trade-surplus-anti-corruption-campaign-de-risking

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