Chinese President Xi Jinping has vowed to deepen an anti-corruption campaign against several sectors of the economy, a move that risks hurting market sentiment, hampering China’s economic recovery, and further driving away foreign investors. On Monday, President Xi singled out the finance, energy, pharmaceutical, and infrastructure sectors and state-owned enterprises as targets of fresh scrutiny for anti-corruption.
President Xi is taking a hardline to fight corruption within Chinese society as he told state broadcaster China Central Television that China will clean up “hidden risks” in sectors where “power is concentrated, capital is intensive, and resources are rich and that there’s no turning back, no relaxing and no mercy in fighting corruption.” Xi’s comments put large parts of the economy on notice for more crackdowns ahead, potentially undermining his efforts to bolster investor confidence and woo foreign investors back to China.
