Chinese Defence Minister under investigation for illegal appropriation

Chinese Defence Minister under investigation for illegal appropriation

Chinese authorities have initiated an investigation into Defence MinisterLi Shangfu, who had been absent from public view for over two weeks,according to information from ten individuals familiar with the situation.

The inquiry revolves around Li’s involvement in military equipmentprocurement, though specifics regarding which equipment purchases are underscrutiny remain undisclosed. Notably, eight senior officials from theChinese military’s procurement unit, which Li headed from 2017 to 2022, arealso subjects of investigation.

The probe into Li and the eight officials is being carried out by themilitary’s influential disciplinary inspection commission. Thesedevelopments were revealed through Reuters’ comprehensive analysis, whichincluded insights from sources closely connected to senior Chinesepolitical and defense leaders and regional experts with in-depth knowledgeof Chinese politics. Chinese authorities have not officially commented onthe situation, with both the Foreign Ministry and the Defence Ministryremaining silent.

Meanwhile, U.S. officials, as reported by The Financial Times and The WallStreet Journal, believe that Li is under investigation for corruption,though the U.S. State Department has yet to respond to these reports. LiShangfu was last publicly seen in Beijing on August 29, delivering akeynote speech at a security forum involving African nations.

However, shortly after his return from an overseas trip that includedvisits to Russia and Belarus, the investigation into him commenced. Thisled to the abrupt cancellation of his planned visit to Vietnam for anannual defense meeting between the two countries, citing a “healthcondition” as the reason.

These developments are reminiscent of China’s recent changes inleadership, including the unexplained replacement of Foreign Minister QinGang and a reshuffling of the leadership within the People’s LiberationArmy’s Rocket Force. Such moves have raised questions about the stabilityof China’s leadership at a time when its economy faces challenges andrelations with the United States have soured on various fronts.

Li and Qin were considered handpicked by President Xi Jinping, makingtheir sudden absences, less than a year into their roles, particularlynoteworthy. Both held prominent public-facing positions and served amongChina’s five state councillors, a rank higher than that of a regularminister.

Notably, the military’s procurement unit had issued an unusual notice inJuly, signaling its intent to “clean up” the bidding process and invitingthe public to report irregularities dating back to Li’s tenure at its helm,which lasted until October 2022. In 2018, Li Shangfu faced sanctions fromthe U.S. for weapons purchases from Russia’s leading arms exporter,Rosoboronexport.

China has repeatedly expressed its desire for these sanctions to be liftedto facilitate improved discussions between the Chinese and U.S. militaries,though attempts to engage in talks with Li during a defense conference inSingapore earlier in the year yielded minimal progress.