Caixin
Jul 09, 2024 07:30 PM
BUSINESS

China’s State Grid Says It Will Stop Promoting ‘Problematic’ Officials

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The State Grid booth at the World Al Conference on Saturday in Shanghai. Photo: VCG
The State Grid booth at the World Al Conference on Saturday in Shanghai. Photo: VCG

China’s biggest electricity grid operator said it will crack down on corruption and push ahead with reforms such as improving its recruitment system at the behest of the Communist Party’s top graft-buster, which recently announced a probe into one of the state-run giant’s senior officials.

In a Monday notice published on the website of the Central Commission of Discipline Inspection (CCDI), State Grid Corp. of China said that it will improve standards for selecting and appointing personnel, including avoiding promoting “problematic” people and will strictly enforce rules against executives interfering to help their close relatives get jobs.

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  • State Grid Corp. of China will crack down on corruption, improve recruitment systems, and enforce stricter rules against executive interference, following a graft probe on senior official Shan Yecai.
  • The company introduced a new code of conduct to penalize employees for accepting bribes or colluding with bidders, aiming for fairer and more transparent hiring practices.
  • In 2023, State Grid's net profit increased by 6.6% to 65.2 billion yuan, and an incremental power distribution pilot project was launched to reform electricity distribution.
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Who’s Who
State Grid Corporation of China
State Grid Corporation of China is the world’s largest power utility, distributing electricity across 26 Chinese provinces and serving over 1.1 billion people. In 2023, it reported a 6.6% increase in net profit to 65.2 billion yuan and revenue growth of 8.2% to 3.9 trillion yuan. The company is undergoing reforms to combat corruption, improve personnel selection, and make recruitment more transparent.
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What Happened When
June 24, 2024:
Shan Yecai, assistant to State Grid’s general manager, was placed under graft probe.
July 8, 2024:
CCDI published a notice from State Grid Corp. of China about improving its recruitment system and cracking down on corruption.
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