Sunday, August 23, 2026

China Recycling Group Ex-Chairman Expelled Over Corruption

Valyrian News Network 4 min read

China Recycling Group Ex-Chairman Expelled Over Corruption

Xing Hongwei, former Party Secretary, Chairman, and General Manager of China Recycling Resources Development Group, has been expelled from the Communist Party of China and removed from public office for serious disciplinary and legal violations, according to an announcement by the Central Commission for Discipline Inspection (CCDI) on August 3. The action follows a seven-month investigation into allegations of corruption, embezzlement, and abuse of power at the state-owned enterprise.

Background

The disciplinary action was announced by the CCDI Discipline Inspection and Supervision Group stationed at the All-China Federation of Supply and Marketing Cooperatives and the Guangdong Provincial Commission for Discipline Inspection, as reported by Xinhua. The investigation was conducted with approval from the CCDI and involved the Qingyuan City Supervisory Commission in Guangdong Province.

China Recycling Resources Development Group, founded in 1989, operates more than 200 invested enterprises with annual sales of 60 billion yuan and handles over 30 million tons of renewable resources per year. The group is described as “an important lever for the state to promote the development of the renewable resources industry and ensure national resource security.”

Key Findings

According to the China News Service, investigators found that Xing “lost his ideals and beliefs, betrayed his original mission, was dishonest toward the Party, and resisted organizational review.” Specific violations included using public vehicles for private purposes, having subordinates pay personal expenses, failing to report personal matters, and engaging in unauthorized part-time compensation.

The investigation particularly highlighted the pattern of “relying on the enterprise to eat the enterprise” (靠企吃企), with Xing found to have used his position to misappropriate public funds for profit-making activities, embezzle public property, and abuse his power causing major losses to collective assets. He is suspected of crimes including misappropriation of public funds, embezzlement, and abuse of power by state-owned company personnel.

Career and Investigation Timeline

Xing, born in July 1973 and a graduate of Lanzhou Business School with a degree in accounting, rose through the ranks of the supply and marketing cooperatives system over more than two decades. His career included senior positions at the All-China Federation of Supply and Marketing Cooperatives, China Supply and Marketing Group, and multiple subsidiary companies before becoming Party Secretary, Chairman, and General Manager of China Recycling Resources Development Group.

As Guancha.cn reported, Xing resigned from his positions as Chairman and Director of Zhongzai Resources Environment Co., Ltd. (stock code: 600217), a listed subsidiary, on December 19, 2025, citing personal reasons. Just weeks later, on January 10, 2026, the CCDI announced that Xing was under investigation for suspected serious disciplinary and legal violations.

Punishment and Prosecution

The CCDI determined that Xing “seriously violated the Party’s political discipline, organizational discipline, integrity discipline, and work discipline” and that his violations continued unabated after the 18th CPC National Congress, characterizing the case as “serious in nature and adverse in impact.”

The All-China Federation of Supply and Marketing Cooperatives Party Group decided to expel Xing from the Party, while the CCDI Discipline Inspection and Supervision Group stationed at the Federation removed him from public office. His illegal gains have been confiscated, and the case has been transferred to procuratorial authorities for criminal prosecution by the Qingyuan City Supervisory Commission, with related assets transferred together.

Broader Anti-Corruption Context

This case is part of China’s broader anti-corruption campaign that has intensified since the 18th CPC National Congress in 2012. In 2025, the CCDI publicly announced investigations into 65 central-managed officials, and at the start of 2026, the commission announced investigations into 8 central-managed officials in just the first month.

The case specifically highlights the “relying on the enterprise to eat the enterprise” phenomenon in state-owned enterprises, a key focus area of the anti-corruption campaign. The investigation’s cross-jurisdictional approach, involving both the CCDI group stationed at the Federation and the Guangdong provincial authorities, reflects the CCDI’s strategy of coordinated enforcement across different regions and administrative levels.

What’s Next

With the case now transferred to prosecutors, criminal charges will follow the administrative disciplinary actions. The exact amounts of funds misappropriated or embezzled have not been publicly disclosed, and the specific enterprises in which Xing allegedly invested under others’ names have not been identified. Whether other officials in the supply and marketing cooperatives system will face similar investigations remains an open question as China’s anti-corruption campaign continues.