How China's Anti-Graft Campaign Targets Its Top Weapons Experts

The push for increased anti-corruption efforts in the defense sector might be connected to the ousting of ex-defense minister Li Shangfu, according to analysts.

About a decade back, rocket scientists and weapons experts within China's defense sectormanagement were one of President Xi Jinping's favorite sources for talents , as he looked for intellectual capital uncorrupted by local political factions to back his bold technological initiatives.

Out of the 24 individuals listed as part of this group, 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 crucial regional economies or overseeing significant national industries.

As Beijing steps up its anti-corruption efforts, the defense industry—which is essential for developing China’s cutting-edge weaponry and facilitating its expansive military modernization plans—has witnessed a remarkable 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) , such as fighter jet manufacturers, missile producers and warship makers, raising concerns over the industry's future development and the military's combat capabilities.

At the end of last month, the industry and information technology minister did so. Jin Zhuanglong He was ousted from his position as the head of the party within the ministry and was omitted from the list of prominent leaders on the ministry’s website following several months of absence from public view. Nonetheless, there has been no official statement regarding an inquiry, and it remains unconfirmed whether he has officially been 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 within the defense sector; however, multiple academics have stated that the corruption crackdown in 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 apparently gone missing from public view for several months, indicating they might also be involved in the operation.

While the sector was not untouched in Xi's decade-long anti-corruption push before Li was sacked, the targeted campaign appears to have picked up speed since then.

Over the last two years, defense giants such as the China Aerospace Science and Technology Corporation, the primary organization for space activities and developer of rockets and missiles, have been singled out. Also targeted is the China Aerospace Science and Industry Corporation, renowned as the nation’s leading manufacturer of missiles. Additionally, the China National Nuclear Corporation, responsible for both civil and military nuclear initiatives, has faced scrutiny.

The most recent statistic being looked into is Liu Weidong The deputy general manager of China South Industries Group Corporation, ranked as the 28th largest global producer of military equipment in 2023. This corporation is vital for supplying mortar shells, personal rockets, and fuses to the People's Liberation Army (PLA).

Others placed under the scanner in recent weeks include Xue Jianguo , previously chaired Harbin First Machinery Group, which is part of China North Industries Group Corporation known as Norinco. This firm is leading the initiative to promote civilian 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 lead engineer involved with the J-20 had their profiles taken down from the company website without any clarification.

In December 2023, three high-ranking officials from the aerospace and defense sectors were removed from their positions on the country’s principal advisory council. Also during that month, nine generals of the People's Liberation Army (PLA), some of whom had been responsible for overseeing military hardware issues, were ousted from China’s highest legislative body.

Experts 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...[and] their acquisition of extra resources," stated Dean Cheng, who serves as a senior advisor for the China program at the US Institute of Peace.

"Over the past few years, the PLA’s budget has increased at a rate surpassing the anticipated expansion of the entire Chinese 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 toward enriching yourself.

Since roughly when Li fell from grace in 2023, Beijing has implemented numerous policies aimed at tackling 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 authority for China’s military forces led by Xi, appealed to the general populace to come forward with reports regarding breaches within the equipment procurement tender evaluation procedures.

The announcement requested details from the public starting from October 2017, which was shortly after 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 defense industry."

Following this, nine Chinese state-owned defense firms pledged to intensify their fight against corruption. These enterprises committed to strengthening 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.

Certain experts suggested that extensive corruption within the system might have existed before Li's case arose; however, the previous defense minister’s situation could signify a critical turning point, leading to intensified scrutiny of the sector.

Alfred Wu, an associate professor at the National University of Singapore's Lee Kuan Yew School of Public Policy, noted that the fall from grace of Li, a significant senior official, highlighted the considerable work needed to rectify the industry.

"The significance of the sector prompted extensive endeavors to advance it; 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 matters," he stated.

The examination occurred as part of an ongoing anti-corruption initiative that continually updated the records of those caught. "tigers" - As the Central Commission for Discipline Inspection (CCDI), which serves as the Communist Party’s primary oversight body, targets high-ranking fallen officials. Individuals holding positions at the vice-ministerial level and higher are known as "centrally managed cadres."

The previous year, the campaign secured a 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 the advancement of reforms. "rectification" of defence-related industries .

Last March, the general pledged to take action against so-called "fake combat capabilities" within the armed forces, a step analysts believe may have been connected to issues in acquiring weaponry.

When the review was conducted, multiple universities faced restrictions from participating in military procurement due to suspected impropriety during the tendering procedure.

"The occurrences 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 from the China Programme at the S. Rajaratnam School of International Studies, Nanyang Technological University, Singapore.

Char observed that the Chinese defense sector and its technocratic leaders—from military to civilian—have received significant support since the 18th Party Congress in 2012, which marks an important five-yearly occasion for leadership changes and policy formulation.

Since 2017, which marked the year after an important party congress, equipment expenditures have constituted the majority of the PLA’s yearly budget. He noted that this has led to a parallel increase in opportunities for corruption within this area.

"Given the individuals punished along with Li Shangfu, we can infer that the issues within the CMC’s equipment development division and the Chinese military-industrial sector are deeply rooted," remarked Char.

Char additionally mentioned that Jin, the industry and information technology minister—who hasn’t been publicly spotted for over two months—could be another defense-oriented official who might face involvement.

Bethany Allen, who leads China investigations and analysis at the Australian Strategic Policy Institute, stated that extensive corruption likely prevailed even prior to Li's case, noting “it appears improbable that such deeply entrenched corrupt practices emerged from an entirely unblemished setting.”

She suggested 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 modernization, making it impossible for them to be overlooked anymore.

A Chinese military legal specialist, Zeng Zhiping, pointed out that the lack of transparency within the sector may contribute to the significant amount of corruption incidents. He suggested this problem has likely persisted for many years without being disclosed publicly.

Still, identifying the actual reason for the latest development proved challenging, he warned.

A political commentator from China, requesting anonymity, suggested that the numerous recent inquiries probably triggered a domino effect due to 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 from this field transitioned into roles in local government, according to the analyst.

One example is Zhu Zhisong The previous 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 investigation into Zhu came after a corruption probe targeting 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 key players involved were significant contributors.

The Defense Department's Report on Chinese Military Strength Released in December indicated that the anti-corruption campaign might weaken China's military preparedness. Similarly, last month’s report from the annual Munich Security Conference highlighted this worry.

Neil Thomas, an analyst at the Asia Society Policy Institute, noted that although Xi has significantly enhanced the PLA’s abilities, these scandals might lead to questions about whether he would have confidence in its leaders during a military emergency or battle situation.

Cheng at USIP said at least some of the investigations could be disruptive to China's tech drive in the military. However, he said the actual impact depended on those individuals' roles and weights in the system, as "each will have different implications".

"If you are talking about programme directors, that can be highly disruptive," he said, but others at lower-level positions might not necessarily affect the overall programme.

One more point to consider is whether these programs have been completed. Alternatively, are they still being developed? Could they be related to designing weapons? Or perhaps they involve maintenance experts? Each scenario carries distinct consequences.

Cheng further noted 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 demonstrate incompetence or failure that may result in consequences.

He additionally mentioned that the vast scope of China's military expansion initiatives might contribute to an increased level of corruption.

"Many nations typically have only one fifth-generation fighter program at most. In contrast, China boasts at least two such programs—the J-20 and the J-31—with additional advanced initiatives currently coming to light. Given the numerous ongoing projects, does this increase the risk of corruption regarding approvals for these programs? Could this potential issue be part of what led to investigations into individuals?" Cheng stated.

A political analyst based in China, who wished to remain anonymous, also mentioned that numerous scandals have sparked deeper worries about potential issues where “inferior goods may be deemed satisfactory…or worse, there could be tampering” which might impact the military’s fighting abilities by overstating a program's success metrics.

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 teacher, highlighted Beijing’s commitment to strengthening the armed forces via an effective anticorruption drive to boost their capability for contemporary combat scenarios.

He stated that these efforts were intended "to guarantee that the party controls the armed forces... to eradicate any potential grounds for corruption within the military," emphasizing that this was the sole path for Beijing. " effectively guarantee the sustained advancement of the PLA's combat capabilities".

As per ASPI's Allen, 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 corruption-busting initiative resembles potent medication. While it might cause certain temporary adverse reactions, over time it can realign both the armed forces and industrial sectors onto the right path.

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The article initially appeared on the South China Morning Post (www.scmp.com), which is the premier source for news coverage of China and Asia.

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