Cleansing of Guangzhou Medical Health System: Chairman of Guangyao Pharmaceuticals Exposed to Have Fallen from Office

The Chinese authorities are continuing their crackdown on the pharmaceutical and healthcare system. Since the beginning of this year, several high-ranking officials in the pharmaceutical system in Guangdong Province have been investigated. Recently, there have been reports of Li Chuyuan, Chairman of Guang Pharmaceutical Group, being under investigation. Analysts point out that the Guangdong pharmaceutical and healthcare system is one of the key areas controlled by the Jiang Zemin family, and the cleansing of this system signifies the elimination of Jiang’s vested interests.

Guangzhou Baiyunshan Pharmaceutical Group Limited announced that on July 22, the Board received the resignation report of Chairman Li Chuyuan. From that day onwards, the Vice Chairman, Yang Jun, will temporarily assume the responsibilities of the Chairman until the new Chairman takes office.

According to “First Financial”, from multiple independent sources, it has been confirmed that Li Chuyuan has been taken away for investigation by relevant authorities. A source close to the state-owned enterprise system in Guangdong Province told the media: “I heard the news that Li Chuyuan was taken (for investigation) the day before yesterday, and family members are also being investigated.” Core personnel close to the Guang Pharmaceutical Group also confirmed the news of Li Chuyuan’s investigation.

Li Chuyuan, 59, is from Shantou, Guangdong Province, and has been working at Guang Pharmaceutical Group for a long time. According to the official website of Guang Pharmaceutical, Li Chuyuan joined the company in July 1988 and has held various positions within the group. Since July 2013, Li Chuyuan served as the Party Secretary and Chairman of Guang Pharmaceutical Group until his recent resignation.

Guang Pharmaceutical Group is the second-largest enterprise group in Guangzhou, mainly engaged in the research and development, production, and sales of pharmaceuticals, health products, medical devices, biomedicine, and medical services related to the pharmaceutical industry. It owns listed companies such as Baiyunshan, Kangmei Pharmaceutical, and 30 member companies, including renowned brands like Wanglaoji and Chenliji.

Political commentator Li Yanming told Epoch Times that Li Chuyuan’s 11-year tenure as Chairman of Guang Pharmaceutical Group’s Baiyunshan has deep connections with the black interest chain within the company and even the Chinese pharmaceutical system as a whole. Li Chuyuan’s sudden resignation and the news of his arrest, which has not been officially announced yet, may indicate that he is in custody. His confession and testimony will determine his final outcome. On the other hand, the delay or lack of public announcement of his arrest by the local authorities in Guangzhou may be to facilitate the replacement of senior executives within the company and allow time for business transitions to mitigate the impact on the market and local political-business circles.

On July 21, Chen Wenhua, the Party Secretary and Director of the Health Commission of Shanwei City, Guangdong Province, voluntarily surrendered, suspected of serious violations of discipline and law.

Chen Wenhua has worked in Shanwei City, Guangdong Province, for a long time, holding various positions such as Party Committee Member and Deputy Director of the Health and Family Planning Bureau, Deputy Director of the Food and Drug Administration, Party Committee Member and Deputy Director of the Medical Insurance Bureau, Party Secretary and Director of the Health Commission in Shanwei City.

Previously, the top officials in Guangzhou Health Commission, Chen Yuansheng, Zhu Hong, and Duan Yufei, were investigated either upon retirement or while in office.

In January this year, Chen Yuansheng, former Deputy Secretary of the Party Committee and Director of the Health and Family Planning Commission of Guangdong Province, was expelled from the Party. Chen Yuansheng, who had retired for 4 years, was investigated in October 2023.

Chen Yuansheng has been engaged in healthcare management since 1981. He served as the Director of the Health Department of Guangdong Province in March 2013 and then as the Director of the Health and Family Planning Commission of Guangdong Province from September of the same year until January 2016.

Duan Yufei succeeded Chen Yuansheng, becoming the Director and Party Secretary of the Department of Health and Family Planning Commission of Guangdong Province in 2016. He stepped down in September 2021. Duan Yufei voluntarily surrendered on April 26, 2024, due to suspected violations.

Zhu Hong, who followed in Duan Yufei’s position, served as the Party Secretary of the Southern Medical University’s Southern Hospital in July 2017 and became the Party Secretary of the Health Commission of Guangdong Province in August 2021. From September 2021 to December 2023, he was the Party Secretary and Director of the Health Commission of Guangdong Province. Following Chen Yuansheng’s investigation a month later, Zhu Hong voluntarily surrendered in November 2023 and was expelled in July this year.

Furthermore, two officials who had intersected with Zhu Hong have also been investigated.

On December 24, 2023, Xu Qingfeng, a member of the Party Committee and Deputy Director of the Health Commission of Guangdong Province, and the Party Secretary of the Provincial Traditional Chinese Medicine Bureau, was taken down. Xu Qingfeng and Zhu Hong worked together in the leadership team of the Health Commission of Guangdong Province for over two years. Xu Qingfeng also served as Deputy Director of the Health Commission of Guangdong Province from November 2018, during Duan Yufei’s tenure as the Director.

Xu Qingfeng has held various positions such as Director of the Medical Administration Department of the Health Department of Guangdong Province and Party Committee Member of the Health and Family Planning Commission of Guangdong Province. In July 2017, he became the Deputy Director of the Health and Family Planning Commission of Guangdong Province and the Director of the Provincial Traditional Chinese Medicine Bureau. From November 2018 to January 2024, he was the Deputy Director, member of the Party Committee of the Health Commission of Guangdong Province, and Director of the Provincial Traditional Chinese Medicine Bureau. In April this year, Xu Qingfeng was taken down.

On March 14, 2023, Chen Minsheng, former Party Secretary of the Southern Medical University’s Party Committee, was announced to be under investigation.

On May 10, the Discipline Inspection and Supervision Commission of Guangdong Province announced that Xian Shaoxiang, former Director of the First Affiliated Hospital of Guangzhou University of Chinese Medicine, was suspected of serious violations and was undergoing disciplinary review and supervision. In 1985, Xian Shaoxiang entered the Internal Medicine Department of the First Affiliated Hospital of Guangzhou University of Chinese Medicine, became the Deputy Director in 2000, and served as the Director of the First Affiliated Hospital (First Clinical Medical College) from 2014, a position he held for 9 years. Last May, the Guangdong provincial government decided to remove Xian Shaoxiang from the position of director of the First Affiliated Hospital of Guangzhou University of Chinese Medicine (First Clinical Medical College) and let him retire.

On April 29, Zhao Zhiyi, former Vice Chairman of the CPPCC in Zhaoqing City, Guangdong Province, was suspected of serious violations and was undergoing disciplinary review and supervision. Zhao Zhiyi had served in various roles such as Party Secretary and Director of the No. 1 People’s Hospital in Zhaoqing City, Party Secretary and Director of the Health Commission of Zhaoqing City, and Vice Chairman of the CPPCC of Zhaoqing City. He has been retired for many years.

On June 26, the website of the Discipline Inspection and Supervision Commission of Guangdong Province announced that two senior executives of the Guangdong Drug Administration were being dealt with. They are Jiang Xiaodong, the former Secretary of the Party Committee and Director of the Guangdong Drug Administration, who was expelled, and Su Shengfeng, a former Level-I Inspector of the Guangdong Drug Administration.

Jiang Xiaodong was announced to be under investigation on March 2 of this year. Jiang Xiaodong had long been working in the family planning system in Guangdong and had held positions such as the Director of the Family Planning Office of Guangdong Province, Party Committee Member and Deputy Director of the Provincial Population and Family Planning Committee, Party Committee Member and Deputy Director of the Health and Family Planning Commission of the Province. Starting from October 2018, he served as a Party Committee Member and Deputy Director of the Guangdong Health Insurance Bureau and, from February 2020, as the Party Secretary and Director of the Guangdong Drug Administration until his fall from grace this time.

Twenty days after Jiang Xiaodong’s investigation, Su Shengfeng, a former Level-I Inspector of the Guangdong Drug Administration, was announced to be under investigation. Su Shengfeng was taken down on March 22 during his tenure.