US Report Reveals Wealth and Corruption Activities of Chinese Communist Party Leadership

On Thursday, March 20, the United States Office of the Director of National Intelligence released the “Report on Wealth and Corruption Activities of Chinese Communist Leaders”.

The report from the Office of the Director of National Intelligence is the first official disclosure by the United States on the sensitive topic of corruption within the Chinese Communist leadership and the party. According to the 2023 National Defense Authorization Act, Congress requested the intelligence community to submit this report, originally scheduled for submission in December 2023 but was delayed by intelligence agencies for unknown reasons.

According to The Washington Times, a congressional aide revealed that a Chinese embassy official had lobbied Congress to reject the report, but was unsuccessful.

The report released on Thursday highlighted corruption as a common feature in present-day China and a challenge faced by the Chinese Communist Party (CCP). This is attributed to the highly centralized political power within the CCP, the lack of rule of law not centered around the CCP, insufficient independent constraints on public officials, and a lack of transparency.

The report mentioned the challenge in studying corruption or personal wealth issues among Chinese Communist Party leaders due to the lack of transparency within China, ubiquitous government censorship, and absence of regulations requiring public disclosure of leaders’ finances. However, data released by the CCP’s anti-corruption institutions – the Central Commission for Discipline Inspection and local commissions – provides insight into the scope of corruption investigations and reveals the overall extent of corruption.

In 2012, CCP leader Xi Jinping initiated an anti-corruption campaign. Over the following decade, investigations were conducted on 5 million individuals, leading to the convictions of 4.7 million officials.

Corruption in China typically involves various forms of bribery or embezzlement related to money. Public records indicate that some CCP officials and their families have amassed substantial wealth through their positions and connections.

The report highlighted that Xi’s anti-corruption campaign reflects a “securitization” movement led by the party or aimed at addressing challenges of political discipline and ideological clarity, particularly at the highest levels of government, to uphold the CCP’s domestic control and legitimacy.

The degree of corruption in China (under the CCP) varies by region and government level. Academic research on corruption in a particular city found that 8% to 65% of officials (depending on their ranks) gained unofficial income from bribery or embezzlement. Another study and a public opinion survey estimated that about 50% of CCP officials are involved in corruption, especially at the local level.

These analyses suggest that bribery can multiply officials’ legitimate income by four to six times, with senior officials gaining more income through corruption than lower-ranking officials, in line with their positions and power. These studies collectively highlight the pervasiveness and extent of corruption within the CCP and the country.

The report underscored that corruption in China is mainly due to power concentration, lack of independent supervision or accountability – especially at the provincial level, and improper motivations for political promotion and economic enrichment. These characteristics of the CCP bureaucratic system have either fostered corruption in many aspects or hindered systemic reform.

It mentioned that party leaders utilize anti-corruption campaigns to eliminate behaviors challenging the party’s legitimacy and control, sometimes targeting their political opponents in specific cases.

In China, corruption is branded as a political crime by the CCP, signaling disloyalty and impure ideology.

Dismissed officials, particularly those at higher or prominent levels within the government, are frequently publicly accused first of serious violations of party discipline. In 2024 alone, the anti-corruption campaign led to the downfall of over fifty senior government officials.

Importantly, political connections with high-ranking officials do not shield individuals from prosecution. This includes some high-ranking officials closely associated with Xi Jinping and promoted under his patronage, who were also purged in the anti-corruption campaign.

The anti-corruption efforts have also targeted high-ranking officials within the CCP military. Despite Xi’s decade-long anti-corruption campaign, a culture of advancement through monetary incentives persists within the army.

The report noted that Xi’s attention to corruption issues in the military may reflect concerns over potential conflicts with Taiwan, as corrupt practices could obstruct the military from achieving the capabilities and readiness levels mandated by 2027.

Xi arrested the commander of the People’s Liberation Army Rocket Force (PLARF) and at least nine current or former PLARF officials, followed by the dismissal of General Li Shangfu, the then Minister of National Defense, in 2023, with investigations into Li and his predecessors.

In 2024, investigations were launched against General Miao Hua, the director of the political work department of the Central Military Commission responsible for China’s military political loyalty issues.

Li Shangfu and Miao Hua were both accused of violating party discipline and were considered close to Xi. The report indicated that this underscored the CCP’s significant concern for loyalty and efficiency, particularly within the military, and highlighted the extent of the CCP’s crackdown on corruption.

“Despite signs that corruption remains prevalent, it is challenging to definitively determine specific corrupt activities of high-ranking CCP leaders from an external perspective,” the report stated.

A study on criminal corruption cases in China found remarkably high levels of corruption among senior CCP officials, with over 80% of officials facing bribery charges among those accused of crimes.

The omnipresent government censorship and lack of regulations on disclosing leaders’ financial statuses contribute to the opacity of individual wealth in China. In 2012, media reports revealed that family members of top leaders, including Xi Jinping who was about to assume office, had amassed substantial wealth. Xi’s siblings, nephews, and nieces were reported to hold assets worth over $1 billion in business investments and real estate.

While reports claim that Xi urged family members to divest upon assuming office, industry research evidence suggested that by 2024, Xi’s family still retained millions in commercial interests and financial investments.

“Although existing data does not directly link these investments to Xi, the holdings could potentially be proxies managed indirectly on his behalf,” the report concluded.

However, Washington observers responded critically to this report, indicating that the final outcome failed to reflect the extent of corruption among Beijing officials.

Paul Berkowitz, a China expert and former congressional aide, told The Washington Times that this seven-page report took two and a half years to complete, giving the intelligence community sufficient time to conduct a comprehensive assessment of the wealth of Chinese Communist leaders, which they failed to do.

The legislation requiring the submission of the report by the Office of the Director of National Intelligence was initiated by Andy Ogles, a Republican House member from Tennessee, and Marco Rubio, who was a former senator from Florida and the current Secretary of State.