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Wealth and Corrupt Activities of the Leadership of the Chinese Communist Party, Part 2

The U.S. Office of National Intelligence has released a report on the “wealth and corrupt activities of the Chinese Communist Party. This is an Executive Summary.

Corruption within China is primarily due to structural features that centralize power,  eschew independent checks or accountability—especially at the provincial level—and  produce perverse incentives for political advancement and financial enrichment. These  features of China’s bureaucratic system entrench incentives for corruption or obstruct  efforts to reform the system in numerous ways. For example: 

• The CDI organizations primarily responsible for investigating misbehaviors are  political organizations that work directly for their Party committees and lack  independent external oversight, allowing them to pursue anti-corruption cases in  often arbitrary ways. The CCP is loath to allow external oversight and instead  prioritizes self-rectification, probably fearing independent authorities would 

undermine central control, limiting accountability and any prospects for sweeping  reforms. 

• Centrally directed economic growth targets for local governments—which must be  achieved for career advancement—but decentralized decision-making at  provincial and other local levels of government allow significant flexibility in policy  implementation. This structure effectively encourages provincial and local leaders  to take illicit actions for personal and professional gain. 

• Membership in elite organizations such as the National People’s Congress (NPC)  is coveted as a symbol of power and authority, and provides access to sensitive  government documents. Potential benefits of NPC membership incentivize  individuals to pay high costs to join, often through bribes, and to accept bribes  while a member, or even upon completion of service, to facilitate business deals. 

Senior-level Corruption 

Specific instances of corruption among more senior CCP leaders are particularly  difficult to determine from the outside, despite indications that corruption remains  widespread. One academic study of criminal corruption cases in China found that  corruption at the top of the bureaucratic hierarchy was very high and, of those charged with  a crime, more than 80 percent of the charges involved bribery. 

Pervasive government censorship and the absence of rules regarding public  disclosures of leader finances contribute to a lack of transparency regarding personal  wealth in China. Even so, journalistic research published in 2012 identified that the  families of senior leaders, including then-Premier Wen Jiabao and then-incoming President  Xi Jinping, had amassed significant wealth.  

• Wen’s family—such as his mother, wife, son, and siblings—controlled assets of at  least $2.7 billion in 2012. Similarly, Xi’s siblings, nieces, and nephews held assets  worth over $1 billion in business investments and real estate.  

• This research did not identify investments specifically linked to the leaders  themselves, nor did it uncover any direct influence from the leaders contributing to  a growth in family investments. However, their senior-level positions would have  granted access to privileged information and both private and state-owned  enterprise actions could have advantaged family holdings due to their connections  to persons with political power. Following publication of this research, China tightened information controls and limited access to many foreign news  organizations, which continues to challenge public research on issues of senior  leader corruption or personal wealth. 

• Xi may have urged family members to divest holdings as he came into power.  However, industry research provides evidence that, as of 2024, Xi’s family retains  millions in business interests and financial investments. While the does not link the investments directly to Xi, it is possible that these holdings are  managed indirectly on Xi’s behalf. 

Open-source research shows corruption cases within the CCP Central Committee  span leading officials overseeing a range of portfolios and projects.  

• In 2020, Zhang Wei, a Chinese businessman, was arrested on charges of  organizing, leading, and participating in organized crime; illegal detention; and  illegal possession of firearms and ammunition. He was also found guilty in 2021 of  illegally absorbing public deposits. 

• Chen Gang, a former member of the Leading Party Members Group of the China  Association for Science and Technology, was accused in 2019 of accepting over  $18 million in bribes—at least some of which was likely associated with his role in  overseeing citywide construction projects for the 2008 Beijing Olympics.  

• In April 2024, Yao Qian, Director of the China Securities Regulatory Commission  (CRSC) Department of Technology Supervision, was investigated for “serious  violations of discipline and law,” possibly for his role in China’s Central Bank  

Digital Currency initiative. The CCDI has investigated at least 16 individuals within  the CRSC, with six of those investigations occurring in 2024.  

The anticorruption campaign has targeted rampant leadership corruption and has  not shied away from purging high-level officials within the ranks of the People’s Liberation  Army (PLA)—which have included a culture of pay-for-promotion that continues even a  decade after the anticorruption campaign’s launch. In 2024, Xi stressed during a speech to  military commanders that “the barrels of guns must always be in the hands of those who  are loyal and dependable to the Party,” further emphasizing his commitment to Party loyalty  and expectations of the same from the military, especially. His focus on corruption in the  PLA may also reflect concerns that corrupt practices will prevent the military from acquiring  the capabilities and readiness he has directed it to achieve by 2027, in preparation for a  potential conflict over Taiwan.  

• In 2023, China removed General Li Shangfu, then-Minister of National Defense,  investigating both Li and his predecessor after arresting the commander of the PLA  Rocket Force (PLARF) and at least nine other current or former PLARF personnel.  

• In 2024, Beijing launched an investigation of Admiral Miao Hua, then-director of the  Central Military Commission’s Political Work Department and in charge of political  loyalty within China’s armed forces. 

• Both Li and Miao were accused of Party discipline violations, and both were  considered protegees of Xi, demonstrating the seriousness of the CCP’s concerns  regarding loyalty and effectiveness—particularly within the PLA—and the scope of  the regime’s approach to corruption.