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"The move is meant to crack down on the creation, sale and use of counterfeit military vehicle plates and root out loopholes in military vehicle management, so as to maintain social harmony, stability and the reputation of the military," state media said, quoting a statement issued by the agency.
Xi, China's newly-installed president, has made the fight against corruption one of his government's top priorities.
He has exhorted Communist Party officials to "build a clean government, show self-discipline and restrain their relatives and associates."
The stakes are high, with Xi warning that graft and corruption could lead to "the collapse of the Party and the downfall of the state."
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