Today, the Chinese government has made a dramatic statement to world by detaining Zhou Yongkang, a prominent figure in the Communist party, on corruption charges. Zhou controlled domestic security and was considered at the beginning 2012 to be the most powerful man in China by the Financial Times. However, his future does not look so bright now. In addition to detaining Zhou, the government confiscated roughly $15 Billion of his assets which included 300 villas, many antiques, and 60 automobiles. The corruption investigations also resulted in the arrest of General Gu on monday, as well as prominent Communist party members Jiang Jiemin and Li Dongsheng.
What does this anti-corruption campaign mean for China? It appears to be an attempt to restore faith in the Communist party, which has lost support in resent years. Additionally, the government will be able to more directly control the oil, gas, and security sectors which Zhou controlled. This could also lead to an overall decline of corruption in China. With the government taking such a bold stance against corruption, it could signal private corporations to change there ways. This could change the nature of China’s economy, eliminating “under the table” transactions and bribes. Whether or not this will be beneficial is hard to tell, but the business practices of China are certainly on the brink of change.
Further reading: http://www.newyorker.com/online/blogs/newsdesk/2014/04/how-far-will-chinas-anti-corruption-fifteen-billion-dollar-purge-go.html