Page 52 - 2017 White Paper
P. 52
7 White Paper on the Business Environment in China
China’s slowing economy? Is the campaign a boost or People’s Congress and in response to questions about
a bane to the economy? International observers and anti-corruption, Premier Li Keqiang was quoted as saying:
analysts seem to be of two minds about this conundrum. “China is a country ruled by law, no matter who you are,
regardless of rank, there is equality before the law. For
The International Business Times reported in March those who have violated party discipline, it is necessary,
2016 recently that critics are criticizing the crackdown as according to the law, to be severely disciplined and
hindering China’s growth and is hampering the current punished.” (Central Discipline Inspection Commission of
administration’s attempts to stimulate the slowing Supervision, People’s Republic of China 2014)
economy (Hewitt 2016).
According to the South China Morning Post, BNP Paribas For the corrupt and for corruption, Premier Li said,
said recently that the campaign has cost a reduction in China has “zero tolerance”. He declared that “corruption is
China’s annual GDP by 1 to 1.5 per cent over the past two the natural enemy of the people's government” (Central
years (Huang 2016). Discipline Inspection Commission of Supervision,
People’s Republic of China 2014).
The IB Times also cited a Shanghai news website called
the Paper as reporting in 2015 that certain government In July 2014, Xinhua reported that China had launched
officials were “hiding from entrepreneurs”, refusing to its Fox Hunt operation, targeting corrupt officials and
meet or dine with them. Some, it said, were “simply suspects of economic crimes who have fled the country.
doing nothing at all” and were stalling on projects. The IB Fox Hunt’s goal: “block the last route of retreat” for
Times further reported that some foreign investors, while corrupt officials after the country's crackdown narrows
generally welcoming the anti-corruption clean-up, have the space for abuse of power. The hunt netted 288
expressed fears that the crackdown may, in some cases, suspects, including 21 who had been at large for more
be “politically motivated, based on power struggles than a decade, and 84 from developed countries such as
or vendettas involving different factions within the the U.S., Canada, Japan and Belgium. An ultimatum was
Communist Party”. Investors around the world were also issued – December 1, 2014 – for escaped economic crimes
spooked by the sudden disappearance of well-respected suspects, mostly corrupt former government officials, to
entrepreneurs with whom they had built relationships give themselves up in exchange for lenient sentences.
and whom, it was later revealed, had been taken in for
questioning by the authorities, well-known business Xinhua noted the success of the operation as “a
figures such as Guo Guangchang, head of the Fosun positive sign that the legal system and rule of law have
Group, and Zhou Chengjian, the billionaire founder of been greatly improved in China, with many countries
Chinese fashion brand Meters Bonwe. Meantime, some strengthening cooperation and coordination with China
critics are of the opinion that constant news about on law enforcement”. Media reports noted that President
corruption may also lead some investors to have second Xi Jinping referred to hunting for economic crimes
thoughts about the wisdom of doing business in the suspects overseas and recovering embezzled money
country (Hewitt 2016). on various occasions during trips overseas, in a bid to
strengthen law enforcement cooperation with other
At the same time, however, there is no doubt that countries such as when visiting Australia, New Zealand, Fiji
most foreign investors do welcome the anti-corruption or attending the G20 Summit in Brisbane. China has also
crackdown and its ensuing results. In an interview with helped forge a cross-border law enforcement network
the IB Times, Joerg Wuttke, president of the European to strengthen transnational anti-corruption cooperation
Union Chamber of Commerce in China (EUCCC), was in the Asia-Pacific region, which was adopted by APEC
quoted as saying: “About 80 percent of our members leaders during the November 2014 summit in Beijing
welcome the anti-corruption campaign [since] it creates (Yuan 2014).
a more transparent, level playing field.” (Hewitt 2016)
Closer to home, the anti-corruption campaign
Background continued in November 2014 when China’s deputy
Procurator-General Qiu Xueqiang announced that
In March 2014, while meeting with foreign media China will establish a new anti-graft body to further
reporters after the closing session of the National increase pressure on corrupt officials (Liang 2014). In an
exclusive interview with Xinhua, Mr. Qiu said that the
52
China’s slowing economy? Is the campaign a boost or People’s Congress and in response to questions about
a bane to the economy? International observers and anti-corruption, Premier Li Keqiang was quoted as saying:
analysts seem to be of two minds about this conundrum. “China is a country ruled by law, no matter who you are,
regardless of rank, there is equality before the law. For
The International Business Times reported in March those who have violated party discipline, it is necessary,
2016 recently that critics are criticizing the crackdown as according to the law, to be severely disciplined and
hindering China’s growth and is hampering the current punished.” (Central Discipline Inspection Commission of
administration’s attempts to stimulate the slowing Supervision, People’s Republic of China 2014)
economy (Hewitt 2016).
According to the South China Morning Post, BNP Paribas For the corrupt and for corruption, Premier Li said,
said recently that the campaign has cost a reduction in China has “zero tolerance”. He declared that “corruption is
China’s annual GDP by 1 to 1.5 per cent over the past two the natural enemy of the people's government” (Central
years (Huang 2016). Discipline Inspection Commission of Supervision,
People’s Republic of China 2014).
The IB Times also cited a Shanghai news website called
the Paper as reporting in 2015 that certain government In July 2014, Xinhua reported that China had launched
officials were “hiding from entrepreneurs”, refusing to its Fox Hunt operation, targeting corrupt officials and
meet or dine with them. Some, it said, were “simply suspects of economic crimes who have fled the country.
doing nothing at all” and were stalling on projects. The IB Fox Hunt’s goal: “block the last route of retreat” for
Times further reported that some foreign investors, while corrupt officials after the country's crackdown narrows
generally welcoming the anti-corruption clean-up, have the space for abuse of power. The hunt netted 288
expressed fears that the crackdown may, in some cases, suspects, including 21 who had been at large for more
be “politically motivated, based on power struggles than a decade, and 84 from developed countries such as
or vendettas involving different factions within the the U.S., Canada, Japan and Belgium. An ultimatum was
Communist Party”. Investors around the world were also issued – December 1, 2014 – for escaped economic crimes
spooked by the sudden disappearance of well-respected suspects, mostly corrupt former government officials, to
entrepreneurs with whom they had built relationships give themselves up in exchange for lenient sentences.
and whom, it was later revealed, had been taken in for
questioning by the authorities, well-known business Xinhua noted the success of the operation as “a
figures such as Guo Guangchang, head of the Fosun positive sign that the legal system and rule of law have
Group, and Zhou Chengjian, the billionaire founder of been greatly improved in China, with many countries
Chinese fashion brand Meters Bonwe. Meantime, some strengthening cooperation and coordination with China
critics are of the opinion that constant news about on law enforcement”. Media reports noted that President
corruption may also lead some investors to have second Xi Jinping referred to hunting for economic crimes
thoughts about the wisdom of doing business in the suspects overseas and recovering embezzled money
country (Hewitt 2016). on various occasions during trips overseas, in a bid to
strengthen law enforcement cooperation with other
At the same time, however, there is no doubt that countries such as when visiting Australia, New Zealand, Fiji
most foreign investors do welcome the anti-corruption or attending the G20 Summit in Brisbane. China has also
crackdown and its ensuing results. In an interview with helped forge a cross-border law enforcement network
the IB Times, Joerg Wuttke, president of the European to strengthen transnational anti-corruption cooperation
Union Chamber of Commerce in China (EUCCC), was in the Asia-Pacific region, which was adopted by APEC
quoted as saying: “About 80 percent of our members leaders during the November 2014 summit in Beijing
welcome the anti-corruption campaign [since] it creates (Yuan 2014).
a more transparent, level playing field.” (Hewitt 2016)
Closer to home, the anti-corruption campaign
Background continued in November 2014 when China’s deputy
Procurator-General Qiu Xueqiang announced that
In March 2014, while meeting with foreign media China will establish a new anti-graft body to further
reporters after the closing session of the National increase pressure on corrupt officials (Liang 2014). In an
exclusive interview with Xinhua, Mr. Qiu said that the
52
