Opinion / Op-Ed Contributors

Confidence boost for China's economic boom

By Mike Bastin (China Daily) Updated: 2014-08-01 08:25

The official investigation of former security head Zhou Yongkang marks yet another milestone in the anti-corruption drive spearheaded by the top leader Xi Jinping.

Some are wondering whether the ongoing fierce anti-corruption campaign will deal a blow to China's economy, as the campaign will arrest the trend of high-end consumption and officials will have to change their GDP-oriented mindset.

However, a truth is although the Chinese economy has slowed it continues to press ahead, with 7.4 per-cent of GDP growth in the first half year.

In addition, China's energy sector continues to perform well, even though Zhou's industrial career involved substantial success in the oil industry.

In actual fact, the ensnaring of Zhou serves as a warning to anyone involved in or likely to become involved in corrupt practices in State-owned enterprises. As a result, both the Chinese energy sector and the Chinese State-owned enterprises as a whole should continue to grow even more strongly.

It is now abundantly clear that the current anti-corruption drive will leave no stone unturned. Such a drive can only help to instill confidence in the successful Chinese economy.

Mike Bastin is a visiting professor at the University of International Business and Economics in Beijing and a researcher at Nottingham University's School of Contemporary Chinese Studies.

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