China’s Military Says No Plates for Porsches in Corruption Crackdown

China’s Military Says No Plates for Porsches in Crackdown

China will ban the use of military number plates on luxury cars, including Porsche and Bentley, in a crackdown on abuse of vehicle management within the armed forces amid President Xi Jinping’s campaign against corruption.

The change was ordered by the Central Military Commission, headed by Xi, and is part of the military’s effort to reinforce discipline and protect its image, the PLA Daily, the armed forces’ official newspaper, said in a report yesterday.

A new license system will go into force on May 1 to clamp down on the sale and use of legal and counterfeit military plates in order to “maintain social harmony, stability and the reputation of the military,” the paper said. Existing plates for all military vehicles will be canceled, it said.

The use of military license plates on luxury cars “is at odds with our army’s glorious tradition and not conducive to building the military’s morals,” according to a commentary in the newspaper. Vehicle management is “a political task to maintain forever the nature, principle and true color of the armed forces,” it said.In the Internet era, military vehicles have been put in the public spotlight and drivers must “mind their behavior,” the commentary said.

“In recent years, irregularities in the use of military cars have drawn public attention,” the official Xinhua News Agency said in a report yesterday. “Some internet users have posted snapshots on popular Twitter-like microblogs featuring limos with military license plates.”

Detailed List

In a full-page special report in the paper, the People’s Liberation Army logistics department gave a list of luxury autos that will no longer be allowed to use military plates. Banned cars include Mercedes-Benz, BMW, Lincoln, Cadillac, Volkswagen Phaeton, Bentley, Jaguar, Porsche and all-terrain vehicles include Land Rover, Porsche Cayenne and Audi Q7.

Other cars priced at more than 450,000 yuan ($73,000) and with engine capacity of 3.0 liters and above will also be barred from using military license plates, the paper said.

The registration, production and issue of all military license plates will be processed through a computer database so that luxury cars or vehicles exceeding quotas will be automatically rejected, according to the report.

The military has also adopted technology that will match license plates with electronic toll collection cards to detect counterfeit license plates as they pass through toll gates, the newspaper said.

–Fan Wenxin. Editors: Nerys Avery, Peter Torday

To contact the reporter on this story: Wenxin Fan in Shanghai at wfan19@bloomberg.net

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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