Recently, the Chinese Communist Party (CCP) has issued a series of official documents addressing the “standardization” of administrative inspections involving enterprises and the need to “prevent and rectify profit-driven law enforcement and judicial activities.” These directives have been criticized for targeting local governments’ suppression of private enterprises through practices such as “criminalizing debt” and “long-distance fishing.” Analysts believe that this issue reflects conflicts between central and local authorities and power struggles at high levels. The authorities have warned that if red lines are crossed, there will be a deadline for correction and accountability, indicating a culture of mutual protection among officials. In reality, many cases should have been addressed and resolved long ago, and it is doubtful whether this crackdown will have a meaningful impact.
The National Development and Reform Commission of the CCP issued the “Guidelines for Building a Unified National Market (Trial)” on the 7th, emphasizing the need to prevent and rectify profit-driven law enforcement and judicial activities at all levels. This directive specifically prohibits the unlawful use of administrative and criminal measures to intervene in economic disputes and infringe on the rights of business entities, as well as illegitimate enforcement actions across different regions. Hong Kong’s Ming Pao newspaper pointed out that these guidelines are aimed at practices like what is known as “criminalizing debt” and the controversial “long-distance fishing.”
Officials from the CCP’s National Development and Reform Commission stated in a press conference on the 7th that local governments must rectify and take responsibility if they cross the “bottom line” or “red line.”
On January 3, 2025, the State Council Office of the CCP issued an opinion on “strictly regulating administrative inspections involving enterprises,” emphasizing the prohibition of inspections driven by profit-seeking motives.
Amid economic downturn, the CCP has repeatedly emphasized the need to improve the business environment, yet scandals involving the suppression of private enterprises have continued to surface in recent years. One prominent case of “criminalizing debt” involved Ma Yijia, a female entrepreneur from Guizhou, who was arrested by the Six Pan Waters City government on charges of “provocation and trouble-making” when trying to recover debts owed to her. Local public security forces have been carrying out profit-driven law enforcement actions across jurisdictions, a practice referred to as “long-distance fishing,” leading to incidents like the death of Beijing businessman Xing Yanjun, who died while under monitored home detention after being apprehended by authorities from his hometown in Inner Mongolia.
At the end of last year, Premier of the State Council Li Keqiang admitted that there were instances of improper law enforcement at the local level and a “abnormal increase in fines and confiscations,” announcing plans for a campaign to “regulate law enforcement involving enterprises” in 2025. Some outside experts believe that the CCP is being forced to take corrective measures due to public grievances, but these efforts might not address the root issues, given the underlying conflicts between the central government and local authorities, as well as internal power struggles within the party.
Political commentator Li Linyi expressed to Dajiyuan that due to unprecedented financial difficulties at the local level, officials have been eager to find sources of revenue, leading to practices like “long-distance fishing.” The belated response from the State Council in addressing these issues likely reflects ongoing power struggles between central and local authorities and within high-level party circles. Despite Li Keqiang being a close confidant of Xi Jinping, his weakened position within the party hierarchy means that local authorities may not heed his directives, while figures like Wang Xiaohong, who oversees public security, are unlikely to show any signs of submission. With public anger reaching a boiling point, Li Keqiang’s intervention may be merely symbolic and may not bring about the desired changes.
According to public reports, Wang Xiaohong, the Minister of Public Security of the CCP, has notably refrained from publicly addressing the controversies surrounding “long-distance fishing.” Wang is considered a protege of Xi Jinping within the “Fujian Gang.”
Chinese affairs expert Wang He previously remarked to Dajiyuan that Wang Xiaohong, with support from Xi Jinping, possesses significant political leverage and military resources, relegating Li Keqiang to a marginalized position. The brazen practice of “long-distance fishing” by the public security apparatus reflects the complicity of local governments and the Ministry of Public Security. Wang Xiaohong should be held accountable for any mishaps within the local public security system, but his reluctance to take a visible stand signifies internal discord within Xi’s inner circle.