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Opinion
Shuli Ren

Xi Jinping’s Banker Crusade Is Too Much Stick, No Carrots

To stem corruption in state-owned financial companies, pay cuts are not the way to go. 

Where are the carrots?

Where are the carrots?

Photographer: Birdlkportfolio/iStockphoto

Everyone’s got to live a little. An effective politician who wants to change the world can’t be all Main Street, no Wall Street.

President Xi Jinping’s corruption crackdown on China’s sprawling financial sector seems only to be accelerating, reaching the upper levels at some of the biggest state-owned institutions. In fact, the scope has been so wide and the punishments so severe that any bureaucrat in charge of a bank, a brokerage, or an insurance unit should fear possible jail time.