Page 38 - 2016_WhitePaper_web
P. 38
6 White Paper on the Business Environment in China
an overall healthier national economy and even as an increasing corruption efforts. In 2013, the anti-corruption campaign saw
number of economic measures indicate that China may be on the firing of 31 senior SOE executives in sectors including oil
the cusp of significant economic hardship. and telecom, with 10 sacked for corruption and discipline
violations, and another 8 dismissed for poor business
Strictly pragmatically, the most likely candidates for success- management. In April, the chairman of one of China’s largest
ful investment overseas are not the SOEs that authorities seem SOEs was investigated and expelled from the party. And in early
to want to prop up as industry champions, but rather smaller— July, state media reported on the investigation and expulsion of
and more independent—enterprises which are more likely to Jiang Jiemin, the former head of China’s State-owned Assets
evade significant concerns about propriety and transparency. In Supervision and Administration Commission (SASAC), the
our opinion, these firms are also most likely to make significant main agency responsible for managing China’s SOEs. Zhang
positive contributions to overseas economies and China’s own. Yujun, assistant chairman of the China Securities Regulatory
Commission (CSRC), faces suspicions of “serious disciplinary
Anti-Corruption Campaign violations” — a term that typically signifies a corruption case,
Reuters reported. 45
Recent Developments
China’s extensive crackdown on government corruption,
China watchers may have observed that President Xi Jin- which has already ensnared hundreds of thousands of officials
ping’s anti-corruption campaign, now entering its fourth year, in the People’s Republic, is now spilling over the country’s bor-
had lost some of its steam. But ever since November 2012, when ders. The State Department recently confirmed that China’s
outgoing President Hu Jintao told the next generation of Chi- legal authorities had provided a list of 150 corrupt Chinese
nese leaders that “systemic corruption” could lead to the “down- officials believed to be hiding in the United States, and vowed
fall of the Party and the state”, these pessimistic pundits may cooperation to help extradite them. 46
have had to revise their opinions this past year as President Xi
Jinping’s administration is still determined to show that 2015 is Wang Qishan, the head of China’s Central Commission for
proving to be quite eventful on this front. Discipline Inspection and the country’s anti-corruption czar
has been quoted numerous times about the administration’s
The campaign, which aims to take down not only low- “roadmap for anti-corruption”, where he has highlighted the
ranking officials known as “flies” but also focus on high- “need for a temporary solution before a permanent cure”. As
ranking officials known as “tigers”, has netted, among its more a long-term solution, he has outlined the government’s corrup-
high-profile “tigers”: former Minister of Commerce Bo Xilai tion-free vision of a future generation of government officials
(one of the first “tigers” to fall); retired General Xu Caihou, a who “not dare to be corrupt,” then “not want to be corrupt,” and
former vice chair of the Central Military Commission, a former finally “not be able to be corrupt.” 44
member of the Politburo, and ironically, the former secretary of
the Discipline Inspection Committee of the Central Military On June 26, 2015, at the Politiburo collective study session,
Commission; Zhou Yongkang, China’s former security czar and Chinese President Xi Jinping stressed the importance of laws
former member of the Standing Committee of the Politburo and regulations in the anti-corruption campaign.
who oversaw the country’s police, paramilitary, intelligence,
and legal forces; Ling Jihua, who served as head of the Central According to Xi’s speech, though China has made great
Committee’s General Office during President Hu Jintao’s achievements in anti-corruption campaign since the 18th Par-
tenure; and General Guo Boxiong, former vice chairman of the ty congress, the overall situation is still serious. Xi stressed that
Central Military Commission .41,42 anti-corruption campaign will not stop despite some skeptical
views in Chinese society. What is most important now is the
In October 2015, Chinese anti-graft officials commenced an building of institutions, which includes the attendant laws and
investigation of Su Shulin, the former chairman of the major regulations. Xi also emphasized that the Party will not allow the
oil and gas company Sinopec, who now serves as governor of so-called “broken window” effect to occur. 47
China’s affluent Fujian province. On November 11, 2015, Lü
Xiwen, deputy secretary of the Beijing Municipal Party Com- From this study session, the message is clear enough: the
mittee, was detained as a suspect for serious violations of par- first stage of anti-corruption campaign is largely over, and many
ty discipline. With her capture, along with the beginning of big “tigers,” such as Zhou Yongkang and Xu Caihou, have been
investigation against Vice Mayor Ai Baojun of Shanghai one brought down.
day earlier, the Central Commission for Discipline Inspection
(CCDI) has managed to uncover corrupt officials of vice-min- Nonetheless, as Xi and Wang often emphasize, China is en-
isterial rank (i.e., “tigers”) in all 31 provincial-level units in tering the second stage of anti-corruption campaign. 47
mainland China. 43
According to an essay in The Diplomat, the key to success in
Government officials are not the only targets of Xi’s anti- this step is to build effective institutions to prevent corruption
from occurring at all—in Chinese, it means officials will be
38 “unable to engage in corruption,” even if they wanted to do so.
an overall healthier national economy and even as an increasing corruption efforts. In 2013, the anti-corruption campaign saw
number of economic measures indicate that China may be on the firing of 31 senior SOE executives in sectors including oil
the cusp of significant economic hardship. and telecom, with 10 sacked for corruption and discipline
violations, and another 8 dismissed for poor business
Strictly pragmatically, the most likely candidates for success- management. In April, the chairman of one of China’s largest
ful investment overseas are not the SOEs that authorities seem SOEs was investigated and expelled from the party. And in early
to want to prop up as industry champions, but rather smaller— July, state media reported on the investigation and expulsion of
and more independent—enterprises which are more likely to Jiang Jiemin, the former head of China’s State-owned Assets
evade significant concerns about propriety and transparency. In Supervision and Administration Commission (SASAC), the
our opinion, these firms are also most likely to make significant main agency responsible for managing China’s SOEs. Zhang
positive contributions to overseas economies and China’s own. Yujun, assistant chairman of the China Securities Regulatory
Commission (CSRC), faces suspicions of “serious disciplinary
Anti-Corruption Campaign violations” — a term that typically signifies a corruption case,
Reuters reported. 45
Recent Developments
China’s extensive crackdown on government corruption,
China watchers may have observed that President Xi Jin- which has already ensnared hundreds of thousands of officials
ping’s anti-corruption campaign, now entering its fourth year, in the People’s Republic, is now spilling over the country’s bor-
had lost some of its steam. But ever since November 2012, when ders. The State Department recently confirmed that China’s
outgoing President Hu Jintao told the next generation of Chi- legal authorities had provided a list of 150 corrupt Chinese
nese leaders that “systemic corruption” could lead to the “down- officials believed to be hiding in the United States, and vowed
fall of the Party and the state”, these pessimistic pundits may cooperation to help extradite them. 46
have had to revise their opinions this past year as President Xi
Jinping’s administration is still determined to show that 2015 is Wang Qishan, the head of China’s Central Commission for
proving to be quite eventful on this front. Discipline Inspection and the country’s anti-corruption czar
has been quoted numerous times about the administration’s
The campaign, which aims to take down not only low- “roadmap for anti-corruption”, where he has highlighted the
ranking officials known as “flies” but also focus on high- “need for a temporary solution before a permanent cure”. As
ranking officials known as “tigers”, has netted, among its more a long-term solution, he has outlined the government’s corrup-
high-profile “tigers”: former Minister of Commerce Bo Xilai tion-free vision of a future generation of government officials
(one of the first “tigers” to fall); retired General Xu Caihou, a who “not dare to be corrupt,” then “not want to be corrupt,” and
former vice chair of the Central Military Commission, a former finally “not be able to be corrupt.” 44
member of the Politburo, and ironically, the former secretary of
the Discipline Inspection Committee of the Central Military On June 26, 2015, at the Politiburo collective study session,
Commission; Zhou Yongkang, China’s former security czar and Chinese President Xi Jinping stressed the importance of laws
former member of the Standing Committee of the Politburo and regulations in the anti-corruption campaign.
who oversaw the country’s police, paramilitary, intelligence,
and legal forces; Ling Jihua, who served as head of the Central According to Xi’s speech, though China has made great
Committee’s General Office during President Hu Jintao’s achievements in anti-corruption campaign since the 18th Par-
tenure; and General Guo Boxiong, former vice chairman of the ty congress, the overall situation is still serious. Xi stressed that
Central Military Commission .41,42 anti-corruption campaign will not stop despite some skeptical
views in Chinese society. What is most important now is the
In October 2015, Chinese anti-graft officials commenced an building of institutions, which includes the attendant laws and
investigation of Su Shulin, the former chairman of the major regulations. Xi also emphasized that the Party will not allow the
oil and gas company Sinopec, who now serves as governor of so-called “broken window” effect to occur. 47
China’s affluent Fujian province. On November 11, 2015, Lü
Xiwen, deputy secretary of the Beijing Municipal Party Com- From this study session, the message is clear enough: the
mittee, was detained as a suspect for serious violations of par- first stage of anti-corruption campaign is largely over, and many
ty discipline. With her capture, along with the beginning of big “tigers,” such as Zhou Yongkang and Xu Caihou, have been
investigation against Vice Mayor Ai Baojun of Shanghai one brought down.
day earlier, the Central Commission for Discipline Inspection
(CCDI) has managed to uncover corrupt officials of vice-min- Nonetheless, as Xi and Wang often emphasize, China is en-
isterial rank (i.e., “tigers”) in all 31 provincial-level units in tering the second stage of anti-corruption campaign. 47
mainland China. 43
According to an essay in The Diplomat, the key to success in
Government officials are not the only targets of Xi’s anti- this step is to build effective institutions to prevent corruption
from occurring at all—in Chinese, it means officials will be
38 “unable to engage in corruption,” even if they wanted to do so.
