China: FAW Group chairman under Communist Party graft investigation image

Xu Jianyi, the chairman of China FAW Group Corp., the Chinese partner of global carmakers Volkswagen AG and Toyota Motor Corp., is currently under a graft-regulator probe ordered by the Communist Party’s watchdog.

Jianyi is now suspected of crucial violations of party discipline and the law, according to a statement coming from the Central Commission for Discipline Inspection. The automotive manager, who is also a former FAW internal Communist Party leader, is among the more than 100,000 officials found to be corrupt since the President Xi Jinping’s two-year campaign has started. The crackdown on corruption has also started to focus on state-owned companies, with no less than 26 of the largest enterprises being targeted by the country’s anti-graft chief with inspections in February. Initially known as First Automotive Works, the carmaker was unveiled as China’s industrial policy promoter by the party. The automaker has numerous joint ventures with key foreign companies and also produces the Red Flag L5 limousine – it costs more than 5 million yuan ($799,000) and is known as China’s most expensive vehicle.

State news agency Xinhua reported as far back as October the Central Commission for Discipline Inspection was investigating potential corruption issues at FAW Group and according to Xu – talking during the National People’s Congress in Beijing – the company will have to first sort through internal plans before following up and making the allegations public.

Via Bloomberg