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Xi Jinping Warns Against Corruption and Collusion Among Officials

In a meeting of anti-corruption regulators, Chinese leader Xi Jinping warned officials against colluding with the business world.

Xi Jinping
Xi Jinping

He emphasized that the government's crackdown on the private sector will remain a concern for investors despite efforts to boost the economy.

Preventing Collusion

"Action should be taken to prevent leading officials from acting for any interest group or power group and to forestall any collusion between officials and businesspeople"

Said, Xi. He also warned against "any infiltration of capital into politics that undermine the political ecosystem or the environment for economic development."

Despite the recent easing of regulatory crackdowns on tech giants like Alibaba and Tencent, questions remain on the extent of this approach. Xi has also pledged to ensure "common prosperity" by reining in wealthy special interests.

Anti-corruption Efforts

Reining corruption has been a central aspect of Xi's leadership of China over the past decade. This approach has been popular with the public and also served to weed out potential threats to his rule. Last year, anti-corruption officials broke up a "political clique" led by former police official Sun Lijun who was sentenced to life in prison for taking bribes and other crimes.

Economic Measures

As China abandons its strict Covid-19 measures, the government is stepping up efforts to bolster the economy. The country is considering a record quota for local government bonds and widening the budget deficit. According to Bloomberg data, the economy is forecasted to expand by 4.8% this year, compared to slight growth in the US and a potential contraction in the Eurozone.