About a decade ago, experts from China's defense sector, including rocket scientists and weapons engineers, worked within the industry’s management structure. one of President Xi Jinping's preferred sources for talents , as he looked for intellectual capabilities unblemished by local political biases to back his bold technological initiatives.
Out of the 24 individuals listed as the Politburo In the Communist Party's leadership group, three members have dedicated over thirty years to the aerospace and defense sectors before taking charge of significant regional economies or overseeing crucial national industries.
As Beijing steps up its anti-corruption efforts, the defense industry—which plays a key role in developing China’s cutting-edge weaponry and backing its extensive military modernization plans—has witnessed an extraordinary increase in probes targeting high-ranking executives over the last twenty-four months.
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The involved enterprises encompass those responsible for the creation of advanced weaponry. People's Liberation Army (PLA) , including companies that manufacture fighter jets, produce missiles, and build warships, has raised concerns about the sector’s future growth and the military’s fighting abilities.
At the end of last month, the minister for industry and information technology spoke about Jin Zhuanglong He was ousted from his position as the head of the party within the ministry and was erased from the list of prominent leaders on the ministry’s website following several months of vanishing from public view. Nonetheless, there wasn’t any official statement declaring an investigation, nor was it verified whether he had been officially succeeded as minister.
Some analysts said the timing of Beijing's apparent acceleration of the anti-corruption drive in the sector suggested it could be related to the downfall of Li Shangfu , who was dismissed from the position of defense minister in October 2023 and subsequently charged with "seriously contaminating the military equipment industry."
These controversies may lead to distrust and influence the political prospects for individuals associated with the defense sector; however, multiple experts suggested that the efforts against corruption within this field could yield advantages over time.
Following Li's demise, at least 26 high-ranking current and former executives of state-owned weapons manufacturers have faced investigations or been dismissed from their roles, as indicated by official documents.
In the meantime, various individuals have allegedly remained out of sight for several months, indicating that they might also be involved in the operation.
Although the sector wasn't spared during Xi's extensive ten-year crackdown on corruption prior to Li's removal, the focused effort seems to have accelerated markedly since that time.
Over the last two years, defense giants such as the China Aerospace Science and Technology Corporation, responsible for space projects and rocket and missile development; the China Aerospace Science and Industry Corporation, the leading manufacturer of missiles in the nation; and the China National Nuclear Corporation, managing both civil and military nuclear initiatives, have been singled out.
The most recent statistic being looked into is Liu Weidong Deputy General Manager at China South Industries Group Corporation, ranking 28th globally among leading defense manufacturers in 2023, and a major provider of mortar shells, single-use rocket systems, and fuses for the Chinese People's Liberation Army (PLA).
Recently, those examined also included Xue Jianguo He was previously the chairperson at Harbin First Machinery Group, which is part of China North Industries Group Corporation commonly known as Norinco. This organization spearheads efforts to promote civil applications of the BeiDou satellite navigation system.
The top minds responsible for developing China's stealth aircraft are also facing scrutiny. In late January, the general manager of the Aviation Industry Corporation of China was implicated. Hao Zhaopeng and Yang Wei A deputy general manager and chief engineer involved with the J-20 had their biographies taken down from the company’s website without any clarification.
In December 2023, three high-ranking officials from the aerospace and defense sectors were removed from the country’s principal advisory council. Also during that month, nine generals of the People's Liberation Army (PLA), some of whom had managed military hardware issues, were ousted from China’s highest legislative body.
Analysts observed that the high-profile corruption cases might serve as a warning to the sector, indicating that "efforts to uncover misconduct have intensified."
"I find this to be an intriguing development partly due to our ongoing observation of the PLA’s modernization efforts... as well as their acquisition of more resources," stated Dean Cheng, who serves as a senior advisor for the China program at the U.S. Institute of Peace.
"Over the past few years, the PLA's budget has increased at a rate surpassing the anticipated expansion of China’s entire economy. This indicates that substantial funds are circulating," noted Cheng, an expert in China's defense industry.
And I believe this is meant partly as a caution: avoid being greedy. Any additional funds should go towards defense, not lining your personal pockets.
Since roughly the time of Li's downfall in 2023, Beijing has implemented numerous measures aimed at combating corruption within the military equipment industry.
In July of that same year, the Equipment Development Department under the influential Central Military Commission (CMC), which serves as the supreme governing body for China’s military forces led by Xi, appealed to the general populace to come forward with reports regarding any breaches within the equipment acquisition tender evaluation procedures.
The announcement requested details from October 2017 onwards—the period following when Li took charge of the equipment development department.
In June 2024, the announcement expelling Li from the party charged him with "seriously corrupting the political environment within the military equipment sector."
Following this, nine Chinese state-owned defense firms committed to intensifying their fight against corruption. These enterprises vowed to strengthen regulations concerning tenders and acquisitions, along with examining aspects like employment practices and product quality assurance.
As recently as February, Beijing released another revised regulation on the research and development of military equipment, requiring stronger quality management and standards for security and confidentiality. The new rules took effect this month.
Several experts suggested that extensive corruption within the system might have existed before Li's case came to light. However, his tenure as defense minister could mark a turning point, leading to significant scrutiny of the sector.
Alfred Wu, an associate professor from the Lee Kuan Yew School of Public Policy at the National University of Singapore, noted that the resignation of Li, a significant high-level official, highlighted the considerable work needed to rectify the industry.
"The significance of the sector prompted extensive initiatives aimed at its development; however, significant issues emerged. The gap between lofty expectations and the revelation of corrupt practices made it extremely challenging for the leadership to acknowledge these difficulties," he stated.
The examination occurred as part of an ongoing anti-corruption initiative that continually updated the records of those caught. "tigers" - As stated by the Central Commission for Discipline Inspection (CCDI), which serves as the Communist Party’s primary oversight body, former high-ranking officials are addressed. Individuals holding positions equivalent to vice-ministerial level or higher are known as "centrally managed cadres."
The previous year, the campaign managed to capture record 58 tigers , representing an increase of over 25 percent compared to 2023 when 45 senior officials were investigated by the CCDI.
In January, General He Weidong, who serves as one of the two deputy chairpersons of the CMC, vowed to intensify efforts aimed at deepening reform. "rectification" of defence-related industries .
Last March, the general pledged to take strict action against so-called "fake combat capabilities" within the armed forces. Experts suggested this initiative was probably connected to issues surrounding the acquisition of weaponry.
As the evaluation progressed, multiple institutions faced restrictions from participating in military procurement due to suspected misconduct during the tendering procedures.
"The incidents over the last two years are probably due to increased and more thorough examination of the procedures involved in military acquisitions," stated James Char, an assistant professor at the China Programme within the S. Rajaratnam School of International Studies, Nanyang Technological University in Singapore.
Char observed that the Chinese defense sector and its technocratic leaders—from military to civilian—have received significant resources since the 18th Party Congress in 2012, which marks a crucial five-yearly leadership transition and policy-setting gathering.
Since 2017, which marked the year after the subsequent party congress, equipment expenditures have constituted the majority of the PLA's yearly budget. He stated, "Consequently, possibilities for fraudulent activities in this area have increased alongside these expenses."
"We can be confident that the issues within the CMC’s [equipment development department] and the Chinese military-industrial sector are systemic, considering the number of individuals punished along with Li Shangfu," Char stated.
Char additionally mentioned that Jin, the industry and information technology minister—who hasn’t appeared publicly in over two months—is another defense-oriented official who might face involvement.
Bethany Allen, who leads China investigations and analysis at the Australian Strategic Policy Institute, suggested that extensive corruption likely predates Li’s case, stating, “It appears improbable that such profound misconduct could have emerged from an unblemished setting.”
She indicated that Li's situation could have resulted from political errors, or it was feasible that issues in weapon acquisition had escalated to such an extent that they impacted military progress and “consequently, it reached a point where it could not be overlooked.”
A Chinese military legal specialist, Zeng Zhiping, pointed out that the lack of transparency within the sector may contribute to the large number of corruption incidents. He suggested this problem has likely persisted for many years without being publicly disclosed.
Nevertheless, identifying the actual reason for the latest development proved challenging, he warned.
A Chinese political commentator, requesting anonymity, suggested that the numerous recent probes were probably triggered like a domino effect, considering the collaborative nature of the procurement process among different organizations.
Moreover, since promotions inside the system frequently hinged on significant personal relationships that formed networks within the industry, the scope of inquiries expanded when individuals with experience in this field transitioned into roles in local government, according to the analyst.
One example is Zhu Zhisong The former leader of Shanghai's free-trade zone, who came under scrutiny towards the end of last year, is Zhu. He had earlier been responsible for Shanghai's aerospace bureau, which serves as a research and development center for rockets and missiles. This intervention by the CCDI occurred after a corruption probe targeted his predecessor at the bureau, Dai Shoulun.
The broad scope of the investigation into these companies has sparked worries regarding the progress of China's weaponry systems, since numerous involved entities were significant players in their field.
The Defense Department's Report on Chinese Military Strength Released in December, the statement suggested that the anti-corruption campaign might weaken China's military preparedness. Similarly, a report from last month, presented at the annual Munich Security Conference, highlighted this same worry.
Neil Thomas, an analyst at the Asia Society Policy Institute, noted that although Xi has significantly enhanced the PLA’s capabilities, these scandals might lead to questions about whether he would have confidence in its leadership during a military emergency or battle situation.
Cheng from USIP stated that at minimum, certain probes could disrupt China’s technological advancements for military purposes. Nevertheless, he noted that the true effect hinges on these individuals’ positions and significance within the framework, since “the consequences will vary for each.”
"He mentioned that discussing changes with program directors could be very disruptive," but individuals in more junior roles may not have such an impact on the entire initiative.
One more factor to consider is whether these programs have been completed. Alternatively, are they still in development phase? Could they be related to designing weaponry systems? Or perhaps they involve maintenance experts? Thus, each scenario carries distinct consequences.
Cheng further mentioned that some of these inquiries might serve as penalties for inadequate performance.
It might be a problem related to your inability to meet expectations, which could indicate corruption, or it may demonstrate incompetence or failure that would result in consequences.
He additionally mentioned that the vast scope of China's military expansion initiatives might be contributing to increased levels of corruption.
"Many nations typically boast only one fifth-generation fighter program at most. In contrast, China has initiated at least two — the J-20 and the J-31 — along with additional advanced programs recently unveiled. Given such numerous initiatives, does this raise concerns about potential corruption regarding approvals for these projects? Could this possibly explain why some individuals are facing investigations?" Cheng remarked.
A political analyst based in China, who chose to remain anonymous, indicated that numerous scandals have sparked deeper worries about potential issues where “inferior goods might be deemed satisfactory...or worse, there could be instances of deceit” which may compromise the military’s fighting effectiveness by overstating the success metrics of various projects.
Several experts pointed out the extended advantages of the cleanup initiative, even though there might be some immediate drawbacks.
Song Zhongping, a military analyst and ex-PLA trainer, highlighted Beijing’s commitment to strengthening the armed forces via a robust anti-corruption drive to boost their capability for contemporary combat scenarios.
He said the efforts aimed "to ensure the party commands the gun ... to eliminate any breeding ground for corruption within the military", noting that this was the only way for Beijing to " successfully guarantee the ongoing development of the PLA's fighting capabilities.
As per Allen from ASPI, the visibility of the campaign was a more encouraging indicator compared to having "no anti-corruption drive with everything appearing normal, yet the problems hindering China’s military modernization remained unaddressed."
A campaign against corruption is akin to potent medication. It might cause some temporary side effects, yet over time, it can realign both the military and the industrial sectors onto the right path.
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