Published by ChinaMNC · Shanyin

Anti-Corruption Campaign Intensifies: What Foreign Founders Operating in China Should Know

China's leadership has reaffirmed a sustained anti-corruption drive, with enforcement reaching grassroots levels and new emphasis on detecting hidden corruption. For foreign founders building or running companies in China, the message is clear: compliance culture and clean dealings with officials and business partners matter more than ever.

Anti-Corruption Enforcement Remains a Priority in China

At a gathering marking the 90th anniversary of the Long March victory, Xi Jinping stressed the need to persistently advance full and rigorous Party self-governance and to keep achieving the Party's self-purification, self-improvement, self-innovation and self-enhancement.

Xi has described corruption as an obstacle blocking the development of the Party and the country's undertakings, and anti-corruption as a major struggle that cannot be lost. In January, at the fifth plenary session of the 20th Central Commission for Discipline Inspection, he called for pushing forward the anti-corruption fight "with greater clarity and resolve."

According to the article, since the 18th Party Congress the Party has developed a path of anti-corruption with Chinese characteristics under the centralized, unified leadership of the Party Central Committee, addressing both symptoms and root causes and promoting a situation in which officials dare not, cannot and do not want to be corrupt. In the first three quarters of this year, discipline inspection and supervision organs nationwide filed 800,000 cases and disciplined 680,000 people.

Why This Matters for Foreign Founders

Foreign founders registering or operating a company in China do not fall under Party discipline, but the campaign shapes the business environment in several practical ways. The article notes Xi's statement that if corruption is allowed to spread, it will damage the economic development environment, induce various risks and hidden dangers, and shake the Party's governing foundation. In practice, this means continued scrutiny of how officials interact with businesses, how public funds and resources are allocated, and how local officials handle approvals and contracts.

The article also emphasizes that the fight against corruption is not a one-off "blitz" but a long-term effort. Xi said corruption remains prone to occurring and frequently occurring, and that the high-pressure posture must not waver: corruption must be fought wherever it exists, greed must be punished wherever it appears, and wrongdoers must be rooted out so that corrupt elements have nowhere to hide.

Enforcement Reaches the Grassroots

The article highlights that the campaign increasingly targets problems close to ordinary people. It cites a case in Shuangqiao Village, Qiaoting Township, Pingle County, Guangxi. Villagers suspected irregularities in the accounts after the village leased collective mountain land. Discipline inspection and supervision officials investigated, a village cadre who misappropriated collective funds received Party disciplinary handling, and withheld rent was recovered. Villagers said "everyone's hearts are united again."

The article says management of rural collective "three assets," medical insurance funds and elderly care services are among the areas being addressed, with "fly and ant" corruption punished so that the public can feel fairness and justice nearby. For foreign founders, this signals that scrutiny extends to local-level dealings, including village collectives, land, and public service funds that may touch supply chains or local partnerships.

New Methods and Greater Penetration

The article stresses that resolve must be matched with effective methods. Xi called for understanding new trends and characteristics of corruption, innovating methods, and discovering, identifying and governing all types of corruption in a timely and accurate way.

One cited approach is investigating both improper conduct and corruption together. In Dianjiang County, Chongqing, discipline inspection officials verifying a cadre's improper hosting of a son's wedding banquet found close ties to a businessman and ultimately uncovered serious disciplinary and legal violations. Through a campaign against improper eating and drinking, the county disciplined several Party members and cadres for corruption behind conduct problems. The article notes that misconduct and corruption are two sides of the same coin, and Xi has called for connecting conduct rectification, discipline enforcement and anti-corruption, punishing intertwined problems through joint investigation and eliminating common roots through joint governance.

Practical Takeaways for Compliance

• Assume more scrutiny of official interactions: Gifts, banquets and entertainment involving public officials or state-linked partners are increasingly likely to be examined in investigations, even when they appear minor.
• Watch local-level transactions: Village collective assets, land leases, medical insurance and elderly care are named as priority areas, so local partnerships in these fields deserve extra due diligence.
• Build internal controls: The article emphasizes timely detection and accurate identification of corruption risks, which supports maintaining clear books, approval trails and third-party verification.
• Treat misconduct and corruption as linked: Improper conduct can be the entry point for a broader corruption investigation, so policies on hospitality and gifts should be enforced consistently.

The "Three-Way" Approach and Integrity Culture

The article explains that promoting the three goals, that officials dare not, cannot and do not want to be corrupt, is a key part of Xi's thought on Party building. He has said this is not only a basic policy of anti-corruption but also an important strategy for full and rigorous Party self-governance in the new era. The Party is exploring ways to make the three work simultaneously and in the same direction, seeking more institutional results and governance outcomes.

Culture is presented as a foundation. In June 2022, Xi visited the San Su Shrine in Meishan, Sichuan, and said the Party should draw governance ideas and thinking from fine traditional Chinese culture. The article says a culture of integrity is being promoted to foster an environment that upholds integrity, rejects corruption, values frugality and rejects extravagance, and to eliminate the soil and conditions for corruption.

Xi's "July 1" speech summarized six fine qualities of the Party, including focusing on strengthening itself and remaining full of vitality, and called for removing all factors harming the Party's advanced nature and purity and all viruses eroding its healthy body. In October 2022, while attending a discussion with the Guangxi delegation to the 20th Party Congress, Xi said Communists are materialists and fearless, willing to face storms and rough seas, quoting "though thousands oppose me, I will go forward" and adding there is nothing to fear.

What to Expect Going Forward

The article concludes that on the new journey, studying and implementing Xi's thought on Party building and maintaining perseverance will help win the tough, protracted and overall battle against corruption and protect Chinese-style modernization with a clean atmosphere. For foreign founders, the practical implication is continuity rather than a short campaign: expect sustained attention to official-business interactions, local-level fund management and corporate integrity programs. Building compliance into registration, licensing, procurement and local partnerships early is the most reliable approach.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.