Corruption in China

This page is part of the Chinapedia project at Ronzz.org, providing factual information on anything China, citing credible primary and secondary sources.

Direct bribery has become rare in the People's Republic of China. Yet collusion is rampant.

The Chinese government and state-provided services have become responsive and efficient at the local level, especially in larger cities. They register vehicles in an hour and issue certificates on the spot, send staff to resolve neighborly disputes on demand, and almost always offer a same-day GP appointment (after a long queue). Bribery is no longer part of the formula.

However, collusion stays rampant in China.

National enterprises acount for approximately 1/4 of Chinese GDP. All national enterprises have some inexplicable ties with families and friends of the China's most powerful. Also, offsprings of high-level party officials routinely accept well-paid managerial positions at investment firms such as Morgan Stanley.

Families of eight former or then Chinese Politburo Standing Committee members were implicated in the leaked Panama Papers.

Below are some credible sources on corruption in China:

The Princelings （太子党）

Children and grandchildren of founders of the Chinese Communist regime. In politics, business, and everything.

Who Are China’s ‘Princelings’?

Princelings are often talked about as a bloc, but in truth there are several different kinds.

The DiplomatBo Zhiyue

The princelings often hold assets through their family and friends to reduce scrutiny and obfuscate liability in case of problem.

The Panama Papers

When journalists found the name of Xi's brother-in-law among the owners of off-shore accounts, President Xi, who has been chanting anti-corruption slogans since his day zero in office, was so embarrassed that the word 'Panama' was censored.

Leaked Files Offer Many Clues To Offshore Dealings by Top Chinese - ICIJ

Eight current and former members of the Politburo Standing Committee, the country’s top decision makers, have relatives with secret offshore companies.

International Consortium of Investigative JournalistsAlexa Olesen

Panama Papers: How China’s wealth is sneaked abroad

The BBC’s Celia Hatton examines evidence in the Panama Papers showing how China’s elite - including top politicians’ relatives - are hiding their money overseas.

BBC NewsCelia HattonBBC News

Some progress

Collusion rings large in China, just like in all authoritarian regimes.

But there is progress.

Harvard scholars found reducing collusion in the Chinese primary land market:

https://www.economics.harvard.edu/files/economics/files/ms28757.pdf

Some accountability, from the US, on a US firm that played the Chinese collusion game and got caught:

JP Morgan Chase to pay $264m over Chinese ‘princelings’ bribery scheme

Settlement with US regulators follows three-year corruption investigation after bank hired children of Chinese officials to secure Asia-Pacific business

The GuardianDominic Rushe