Observers believe that this anti-corruption campaign in the financial sector largely aims to consolidate Xi’s power, who successfully secured a historic third term in October 2022.
They speculate that Xi needs to control the extensive financial industry to address deepening economic issues and prepare for a potential “financial war” with the United States.
Corruption in China’s financial sector has long been a troubling issue for both the public and the government.
According to Transparency International, a non-profit organization monitoring corruption worldwide, China ranks 78 out of 180 countries in the 2021 Corruption Perceptions Index, scoring 42 out of 100, where 0 indicates highly corrupt and 100 denotes very clean.
Corruption in the financial sector can threaten financial system stability, reduce resource allocation efficiency, increase financing costs, and undermine public trust.
Corruption can also facilitate money laundering, tax evasion, and organized crime.
