Corruption in China

Abstract

Corruption is perhaps the most ubiquitous and well-studied form of white-collar crime in China. This chapter examines research and conceptual issues regarding the illegal use of power for personal gain, including reasons for its apparent prevalence, despite the country’s limited ability to uncover its most serious forms amidst political change, economic reform, and degradation of norms. Opportunities for corruption remain relatively high in China due to a significant degree of state-owned enterprises (SOEs) in its economic base. Theories of corruption from both the East and West are discussed, including research documenting the changing forms of corruption in China. The culturally embedded Chinese practice of guanxi is examined along with its connections to newer forms of corruption. The current challenges of corruption in China in the face of the hidden economy and what has been labelled, “Mafia-Capitalism” are also considered in the context of decentralization of the state. The well-known Corruption Perception Index (CPI), and a more recently developed metric, the “Unbundled Corruption Index” (UCI) are compared in terms of estimating levels and types of corruption, with the latter appearing to better reflect reality. System capacity in enforcement, and non-issue making are examined in the “Sanlu Melamine Scandal” involving poisoned milk. Anti-corruption campaigns, limitations of state control, and the capture of corrupt officials are also discussed.