China’s President Hu Jintao moved decisively to cement his political authority and that of the Beijing central government in economic affairs by on Monday sacking Chen Liangyu, the Communist party secretary in Shanghai, for alleged corruption.

A scandal involving the Shanghai pensions system erupted into a national political power struggle after Mr Hu used the allegations to dismiss Mr Chen. As a member of the national politburo, from which he has also been suspended, Mr Chen is the most senior Chinese official to be dismissed for corruption in at least a decade.