BBC Chinese recently reported, based on Chinese media coverage, that the Chinese authorities conducted a wide scale military audit starting in February. They discovered numerous financial problems. The key issues include blocking the proper distribution of military funds, reducing the released funding level, and the misappropriation of funds. Other findings include opening inappropriate bank accounts, spending without a budget, forging invoices, and expanding capital investments without approval. The Chinese military system is one of the key areas for Chinese President Xi Jinping’s anti-corruption movement. In the past couple of years, many high ranking military officials have been captured, including one top level general. In the nineties, the Chinese military was prohibited from engaging in civilian business transactions. However, in recent years, many military officials have, once again, gotten deeply involved in civilian businesses.
Source: BBC Chinese, July 2, 2015