BEIJING: Uncovering well-concealed abuse of power has become a priority of China’s anti-graft bodies, as corrupt practices have changed from cash-filled suitcases and overt embezzlement to a more sophisticated type of invisible graft, experts said.
Invisible graft includes shadow companies, complex financial derivatives and a political-business “revolving door”, which manifests as officials using the connections, resources or influence they accumulated while in office to seek personal gain, such as taking positions in companies they once regulated, according to cases released by the country’s top anti-graft bodies.
While addressing the fifth plenary session of the 20th Communist Party of China Central Commission for Discipline Inspection, which opened on Monday, Xi Jinping, general secretary of the CPC Central Committee, stressed the need to stay attuned to new trends and features of corruption. Xi urged efforts to innovate methods and approaches, promptly detect and accurately identify corrupt practices, and effectively address all forms of corruption, in order to continuously enhance the penetrating power of anti-corruption efforts.
In a case released on Monday, Xu Xianping, former deputy director of the National Development and Reform Commission, groomed businessman Huang Huan as his interest proxy, helping Huang’s enterprise enter the qualified supplier database of a central State-owned enterprise and secure shantytown renovation projects. In return, he accepted millions of yuan in bribes from Huang via his family, disguised as “loans”.
Xu also arranged for one of his relatives to subscribe to original shares of businessman Fang Hong’s company and lobbied for Fang’s enterprise in restructuring, mergers and acquisitions, and listing to support its growth. In 2007, he acquired a 5 percent stake in a company valued at 3 million yuan ($430,000) for only 80,000 yuan, with the shares held in proxy by businessman Chen Zhidong. After stepping down, he used his former NDRC influence to promote favorable transportation plans for the company and urged local leaders to assist Chen. In 2020, Chen repurchased the equity at a premium, netting Xu tens of millions of yuan in illegal “profits”.
Xu also previously served as vice-governor of Hunan province and counselor with the State Council after stepping down from front-line posts in 2015. He retired in July 2023 and was placed under investigation by the CCDI and the National Supervisory Commission in March 2025.
Yang Weidong, a professor at the Institute of Rule of Law at China University of Political Science and Law, noted that targeting emerging and concealed corruption has become a top priority in anti-corruption efforts in recent years. As the fight against corruption has deepened, intensified crackdowns have driven the abuse of power to evolve into more covert forms.
Shadow companies are a typical example, he said. Some officials operate businesses through proxies such as family members who hold shares on their behalf or via behind-the-scenes manipulation, evading regulatory scrutiny. –The Daily Mail-China Daily news exchange item
