Corruption and anti-corruption in China: a case study of high-ranking officials
| DOI | https://doi.org/10.1108/JFC-03-2020-0041 |
| Published date | 01 May 2020 |
| Pages | 715-734 |
| Date | 01 May 2020 |
| Author | Jiahong He |
| Subject Matter | Accounting & Finance,Financial risk/company failure,Financial crime |
Corruption and anti-corruption
in China: a case study of
high-ranking officials
Jiahong He
Law School, Renmin University of China, Beijing, China
Abstract
Purpose –With the analysis of the causes of corruption, this study aims to investigate specific anti-
corruptionmeasures that can be implemented to reform the politicalsystem and the social climate of China.
Design/methodology/approach –This study examines 97 severe corruption cases of high-ranking
officials in China, whichoccurred between 2012 and 2015. As this insinuates that both institutional and social
corruption are major problems in China, the analysis delves into multiple facts of corruption, including
different types, four primary underlying causes, and suggestions regarding the implementation of three
significantgovernmental shifts that focus on investigation, preventiontactics and legal regulations.
Findings –China’s corruption is not only individual-based but also it has developed into institutional
corruption and social corruption. Besides human nature and instinct, the causes of corruption can be
organised into four categories, namely, social customs, social transitions, institutional designs and
institutional operations. For the removed high-ranking officials, the formation of interest chains was an
importantunderlying cause behind their corruption.
Originality/value –This study makes a significant contribution to the literature because this study
provides a well-rounded approachto a complex issue by highlighting the significance of democracy and the
rule of law as waysto regulate human behaviour to combat future corruption.
Keywords Corruption, Rule of law, Anti-corruption, Strategy
Paper type Case study
1. Introduction
In China, over the past few decades, a large number of public officials have been
apprehended and charged for corruption[1]. According to the working report of Cao
Jianming, the Chief Procurator of the Supreme People’s Procuratorate (SPP) to the National
People’s Congress (NPC) standing committee on 22 October 2013, procurators nationwide
had investigated 151,350corruption cases, which involved 198,781 officialsbetween January
2008 and August 2013. Among these officials, 13,368 were county-level cadres (i.e. county
and division chiefs), 1,029 were city-level cadres(i.e. mayors and department chiefs) and 32
were province-level cadres (i.e. governorsand ministers), including Chen Liangyu, a former
politburo member and the party chief of Shanghai, as well as the party chiefof Chongqing,
Bo Xilai. During this period, the procurators indicted 167,514 officials, and of this total, the
courts found 148,931 peoplewere guilty of corruption. They recouped funds of RMB 37.7bn.
Compared to the previous 5 years, the numberof officials that were punished for corruption
had increased by 19.5 per cent (Song and Xing, 2013).
However, the officials who are punished for corruption do not represent all of China’s
corrupt officials. There is an “unknown number”of corruption cases, which is higher than
other crimes. For example, there are relativelyfewer murder cases that remain “unknow”or
undiscovered. As corruption, especially bribery, generally leaves no direct victims or
eyewitnesses, many of these cases are left unreported. Frequently, the only people who are
Corruption and
anti-corruption
in China
715
Journalof Financial Crime
Vol.27 No. 3, 2020
pp. 715-734
© Emerald Publishing Limited
1359-0790
DOI 10.1108/JFC-03-2020-0041
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1359-0790.htm
privy to the situation are the bribe’s presenterand accepter, who are unlikely to report it, as
they reap the benefits of their “transaction of power with money”. In corruption cases,
judicial proof is often difficult to obtain because of insufficient material evidence, and
corrupt officials frequently have extensive relationship networks to protect them. As a
result, even when investigators have gathered enough evidence, it may be difficult to
institute a convictionwith a substantive punishment[2].
Given the difficulties in discovering, provingand punishing corruption crimes, it can be
inferred that approximatelyhalf of these crimes that have already been committed have not
been discovered, and half of those discoveredhave not yet been proven. Also, even for those
crimes with sufficient evidence, half have not resulted in punishment. If these three
inferences are reasonable,then 12.5 per cent of corrupt officials have been punished. In other
words, the unknown number of corruptioncrimes may account for as high as 87.5 per cent
of the total. Of course, thisis a subjective inference and cannot serve as a basis for assessing
corruption but it may providereaders a clue towards understanding the difficultiesinvolved
in fighting corruptionin China (He, 2015a).
Currently, corruption is endemic and a severe problem in China. In November 2012, Xi
Jinping addressed the 18th National Congressof the Communist Party of China (CPC): “the
preponderance of facts tells us that as the corruption problem continues to intensify, the
party and even the nationare put at risk! We must take heed”(Xu, 2014). As then, China has
made remarkable achievements in its anti-corruption campaign that consists of “hitting
tigers and swatting flies”[3]. According to an empirical study that was conducted by the
author, 145 public officials, who were either at or above the provincial/ministerial level or
the major general level of the military system, have been investigated and charged with
corruption from November 2012 to the end of 2015, including Su Rong, former Vice
Chairman of the Chinese People’s Political Consultative Conference (CPPCC); Xu Caihou,
former Vice Chairman of the Central Military Commission of the CPC; Zhou Yongkang,
former standing member of the Politburo of the CPC; and Ling Jihua,former Vice Chairman
of the CPPCC. When these “big tigers”were caught, corruption’s momentum was stalled,
and the focus for fighting corruption shifted to systemic reforms that eliminated its root
causes. Without a doubt, this is one of China’s most importantand challenging missions.
2. Empirical analyses of corruption cases involving high-ranking officials
As mentioned above, 145 high-ranking officials or “tigers”, were investigated and charged
with corruption between November 2012 and December 2015. In total, 48 of these “tigers”
were military officials, and their case files were not available. Therefore, we conducted case
analyses of the remaining97 non-military officials[4].
In December 2012, Li Chuncheng, former party deputy secretary of Sichuan province,
became the first dismissed “tiger”after the 18th CPC Congress. Then, in 2013, 18 high-
ranking officialswere also discharged:
(1) Yi Junqing, former Director of Compilation and Translation Bureau of the CPC
Central Committee;
(2) Wu Yongwen, former Vice Chairman of the Standing Committee of Hubei
Provincial People’s Congress;
(3) Liu Tienan, former Deputy Director of the National Development and Reform
Commission (NDRC);
(4) Ni Fake, former Deputy Governor of Anhui Province;
(5) Guo Yongxiang, former Vice Chairman of the Standing Committee of Sichuan
People’s Congress;
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