China’s central government is trying to curb a spate of detentions by local authorities of business executives that is fuelling anxiety among entrepreneurs and risks undercutting efforts to boost economic growth. A review of filings by the Financial Times found senior figures in more than 80 companies listed on the Shanghai and Shenzhen stock exchanges were detained in 2024.
China’s securities regulator requires listed that companies disclose detentions of controlling shareholders, chairs, chief executives and other top managers, and the numbers suggest much broader action against executives across the country. Some of the detentions appeared to have little or no legal basis and in many cases were carried out by authorities based far from the target’s business operations, a practice Chinese media have dubbed “long-range fishing”. One leaked official document from the southern province of Guangdong said thousands of companies in a single city had been targets of action by authorities from other areas since 2023. Premier Li Qiang this month called for stronger supervision of company-related law enforcement, saying the government would review regions with abnormal income growth from fines and confiscations or high levels of enforcement outside their jurisdiction. “Instances of abuse of administrative discretion and unfair enforcement persist in certain areas and sectors,” Li said, according to the official news agency Xinhua. The premier added that it was essential to address “the pressing issues raised by citizens and businesses”. Analysts said the high number of detentions might be linked to the deteriorating finances of local governments, which have suffered plummeting revenues from land sales amid a nationwide property crisis that has also slowed China’s economic growt