Former Chinese politician Hu Qili once said, "An evil wind is blowing through the country, creating tremendous problems, mostly connected with money." Despite being labeled a reformer by the hardliners, Hu's assessment isn't too far off given the string of high profile corruption cases recently unveiled by the PRC. In fact, the new president Xi Jinping (who was officially inaugurated in March of this year) has openly declared a war on corruption, making it a major pillar of his decade long domestic agenda. Though this task is much easier said than done, especially when taking into consideration its institutionalized nature in China, those involved in outlandish or even ludicrous acts of venality are being exposed and brought to justice.

Xie Caiping Photo : china.org.cn

To clarify, in the book "The Party," Richard McGregor argues that there are two basic ways an official gets busted for corruption in China. Similar to the imprisoned oligarchs of Russia, he or she either makes enemies with the wrong people or does something so obscene/ridiculous that it becomes potentially embarrassing for China not to do something about it. Given the nature of China's government structure, it's difficult to discuss the former with any measure of accuracy, but the latter—ridiculous/obscene gestures—are much easier to identify, in part due to social media playing a helping hand. From property ownership to expensive watches to fancy banquets making national headlines, coupled with the high profile cases of the related corrupt officials, here's a look at some recent topical examples of corruption in China.

Corruption using multiple identities

China's corruption wears many faces—sometimes literally! Some officials are using multiple identities to illegally transfer money abroad. According to a January 2013 article in The Telegraph, an estimated 1 trillion USD (!) was smuggled out of the country in 2012 alone. Others are using fake identities to purchase more houses/properties than the legal cap. China Daily reported in February that an official in Guangdong owned over 100 properties using fake hukous (China's household registration form) with the help of banks, and officials in the local government, public security and housing administration bureaus. In Shanghai, Lu Ming, the Deputy Secretary of Shanghai's New Pudong Area, was busted for purchasing a mansion that everyone knew he couldn't afford. China.org reported on the case of Gong Aiai, the former deputy head of a bank in Shaanxi Province, who purchased 20 homes totaling $159 million USD with four illegal hukous under "ghost identities."

Corruption in the People's Liberation Army

In February 2012, Gu Junshan, a prominent Lieutenant General of the People's Liberation Army, was investigated for corruption after rumors spread online that he owned an astonishing 400 properties through corrupt measures. According to the New York Times, Gu claimed that these properties were gifts and/or retirement homes for "friends." Ironically, Gu was exposed just days after giving a passionate speech on the subject, in which he described the country's rampant corruption as a "do-or-die struggle." The NY Times article also touched on the broad scale of corruption within the PLA, based on the writings of Colonel Liu Mingfu. Liu, who is also an established author and professor, recently declared that even though the Chinese armed forces haven't fought an international war in over 30 years, "The People's Liberation Army has reached a stage in which its biggest danger and No. 1 foe is corruption." Another insider who asked to remain anonymous concurred, stating: "graft and wide-scale abuses pose as much of a threat to the nation's security as the United States."

Government corruption linked to the Triads

China's notorious mafia known as the Triads (or "Black Society" 黑社会 in Mandarin) was involved in one of China's largest corruption busts several years ago in Chongqing. In 2009, Xie Caiping, the godmother of the Chongqing underworld—who also just so happens to be the sister-in-law of the megacity's deputy police chief, Wen Qiang—received an 18-year sentence for running 30 illegal casinos and was also accused of having 16 young male lovers under her payroll. Thousands, including prominent businessmen, policemen and government officials, were also arrested and charged while six were sentenced to death, Wen Qiang included. According to an analysis in a Newser online report, when things got out of hand like they did in Chongqing, the PRC will go after the involved individuals "with a vengeance." The Chongqing bust illustrates how their outlandish behavior coupled with thousands of accomplices was simply too much for the government to turn a blind eye. (In another bit of irony, the Chongqing campaign was lead by now-fallen political star Bo Xilai).

Guanxi and gift giving

As mentioned in the intro, corruption is somewhat institutionalized in China, especially since guanxi("connections") are essential for making business deals. Though forms of connections no doubt exist everywhere, in China guanxi can quickly turn into corruption when outrageously expensive luxury goods are given for the sake of building a better relationship. The New Yorker recently posted an article on the subject stating something that's readily apparent to most of us living in China: global luxury sales and Chinese corruption in the political arena are "inextricably intertwined." In 2011, luxury watch sales in China grew 40%, but after the Bo Xilai scandal and the mass anti-corruption campaign that followed, the luxury watch market dropped 27.5% in 2012. Further, the article stated that in 2009 an estimated 50% of all luxury brand sales in China were "gifts" to government officials. In retrospect, it seems that the individuals arrested on counts of corruption aren't the only ones hurting from China's anti-corruption campaign—luxury brand-name corporations are feeling the burn too.

Unhealthy tendencies

The boom years of China's economy have led to a wave of self-indulgence and unprecedented materialism for the country's upper classes, so much so that the government has called upon the people to consume less and return to traditional Chinese values by promoting whole-hearted activities like sipping tea with the family and urging women to quit marrying for money. However, it seems that playing the erhu in a park just doesn't have the same appeal of racing your shiny new Porsche down the street. Chinese government officials have been accused of squandering millions in public funds in Macau casinos while lavish banquets for VIPs are known to present such a mass quantity of food and expensive alcohols that it'd be impossible for guests to finish; leading to an epic waste of food and money. Furthermore, Human Flesh Searches—microblogs that scrutinize well known individuals—have boomed amongst netizens in recent years in part for shining light on corrupt individuals. Some recent "HFS" victims include Yang Dacai (chief of the Shanxi provincial work safety administration) wearing five luxury watches costing more than $75,000 USD in total and Zhou Jiugeng (head of the Nanjing land bureau) for his extravagant sport-cars, luxury cigarettes and (of course) insanely expensive watches.

Hope for the future

With the March 2013 National People's Congress and the inauguration of the new President Xi Jinping, China will embark on a new era of political reforms, with special emphasis on the anti-corruption battle. Quoting from a March 2013 NBC report, Xi has promised to "root out graft that infests everything from kindergarten admissions to the highest levels of government… [and] has called for anti-corruption campaigns ranging from banning luxury banquets to prohibiting floral displays and red carpet treatment for the official delegations." On paper, it seems that things should be getting better, but in reality fighting corruption presents a catch 22: The more corrupt officials you detain, the more enemies you make, and the more negative press it gives the already tainted image of Chinese corruption. No one knows for sure how things will play out, but based off Xi's rhetoric, it certainly seems that while the nation's corrupt officials indeed have the watches for now; Xi may very well have the time.
 

Related links
Gift of the Graft: Corruption in China
Foul Play: China's Football Infested by Corruption Through and Through
Putting China in its Place: An Expat Overview of International Rankings

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