China’s state-owned defence firms pledge to tackle corruption

Chinese state-owned defence companies have promised to step up efforts to tackle corruption after former defence minister Li Shangfu was accused of “polluting the equipment sector”.

Nine firms operating in sectors that include nuclear, aerospace and shipbuilding promised to tighten their rules on bidding and procurement as well as looking at areas such as hiring and quality control following a series of inspections by the Central Commission for Discipline Inspection (CCDI), the top anti-corruption agency.

A number of senior commanders and defence company executives have already been caught up in the ongoing anti-corruption campaign targeting the military.

Last month, Li and his predecessor as defence minister Wei Fenghe were expelled from the Communist Party as Beijing confirmed they were being investigated on suspicion of corruption.

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Former defence minister Li Shangfu has been accused of “polluting the equipment sector”. Photo: EPA-EFE

Li, who had an aerospace background and spent decades in the military’s equipment department, was accused of “severely polluting the political ecology in the military equipment sector and atmosphere in the industry”.

Wei was also accused of accepting a huge amount of money and helping others gain improper benefits.

Nine generals – including previous and serving commanders from the rocket and air forces – as well as officials from the equipment development departments were also dismissed from the National People’s Congress late last year after being caught up in the investigation.

Among the companies that set out their efforts to tackle corruption was the China National Nuclear Corporation, which oversees the country’s civilian and military nuclear programmes.

It pledged to strengthen the oversight of its “top leaders” and “standardise the management of bidding and procurement”, adding that it was also carrying out an investigation into improper employment practices – a problem highlighted in a series of inspections carried out by the CCDI last year.

China Aerospace Science and Technology Corporation, a main contractor for the country’s space programme said 36 employees had been the subject of Communist Party disciplinary action and seven had been handed over to the judicial authorities.

Wu Yansheng, the company’s former chairman, was removed from his role on the country’s top political advisory body, the Chinese People’s Political Consultative Conference (CPPCC), last December.

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The company said other problems relating to quality control had been uncovered and promised to improve product design to “ensure the stable operation of satellites in orbit” and strengthen employees’ awareness of safety and confidentiality

Another company, the China Aerospace Science and Industry Corporation, which is the country’s largest maker of missiles, vowed to improve secrecy and address irregular procurement. Its former deputy manager, Wang Changqing, was also removed from the CPPCC in December.

Two military equipment giants, China North Industries Group Corporation and China South Industries Group Corporation, also promised to act.

The latter said it would address irregular transactions and the revolving door between government and business, as well as ensuring executives who resign from the firm cannot evade scrutiny.

Other firms that pledged to act include the Aviation Industry Corporation of China, the Aero Engine Corporation of China and China Electronics Technology Group Corporation.

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