China cracks down on private earnings in the army

In the latest bid to clamp down on corruption in public life, China has ordered the army to end all "paid outside work" in the next three years, referring to military hospitals and hotels that currently are open to the public.

The Chinese military is a major pillar of the economy and President Xi Jinping has been tough on corruption in the ranks of the People's Liberation Army, part of his campaign to underline that he is in full control of the government.

The dragnet has seen the arrest of several top brass, including former vice-chairmen of the Central Military Commission, Guo Boxiong and Xu Caihou.

In a sign of how seriously the edict is being taken, the notice was carried on the front page of the People's Liberation Army Daily.

The crackdown is visible day to day. In one section of town near the Irish Times bureau, a whole block of property is owned by the military and, as well as a barracks, it also houses a supermarket, a cafe and pharmacy. In recent weeks, some of these outlets have been hastily closed, in a move that appears to be linked to the changing nature of military business ownership in China.

The PLA has huge holdings in the broader economy. While details of what the government plans to close were not revealed, a note from the defence ministry said both the PLA, the world’s largest military, and the paramilitary People’s Armed Police (PAP), would be covered under the ban, which will cover military art troupes, publishing houses and hospitals that accept paying civilian patients.

Since coming to power in 2012, President Xi has launched a campaign to root out corruption in China, whether it involves massive wealth accumulated by the powerful "tigers" of the elite or backhanders given to the "flies" at the bottom of the Communist Party.

At the National People's Congress this year, Mr Xi said China would raise military spending by 7.6 per cent, its lowest increase in six years. The 954.35 billion yuan (€130.84 billion) figure is about one quarter of the United States defence budget.

At the same time, he has embarked on a modernising programme of the PLA, cutting 300,000 jobs and rejuvenating its Soviet-style command structure.

One of the cornerstones of President Xi’s government is cutting corruption and making the 2.3 million-member armed forces more professional and battle ready.

The military has largely pulled out of its biggest money making businesses in recent years, especially the international investment businesses such as its auction businesses and its real estate holdings, that used to so vex the Communist Party leadership.

Under the new rulings from the Central Military Commission, military units will no longer be allowed to launch new programmes or sign new contracts of paid services, and expired contracts may not be extended.