C6 Anti-corruption

“power tends to corrupt and absolute

power, to corrupt absolutely”.
——Lord Acton
 Reference
• Mayling Birney, Decentralization and Veiled
Corruption under China’s “Rule of Mandates”,
World Development，2013，53: 55–67.
• Gong Ting, Managing Government Integrity under
Hierarchy: anti-corruption efforts in local China,
Journal of Contemporary China, 2015
Vol. 24, No. 94, 684–700.
 Outline
• 1. Corruption in current China
• 2.What is corruption in China?
• 3. The features of Corruption Case
• 4.Why corruption is rampant in China?
• 5.Anti-corruption Campaigns
• 6.The new reform in the future
 1. the current situation
• Transparency International’s Corruption
Perceptions Index (CPI)
• Political and Economic Risk Consultancy’s
(PERC’s) annual survey on corruption
• the World Bank’s Control of Corruption
governance indicator
 Year Score Rank countries

2017 41 77 178
2016 40 80 178
Corruption Perceptions
2015 37 83 168
Index(CPI)
2014 36 100 175
China’s score rose from 2.2 2013 40 80 177
in 1995 to 3.6 in 2011. In 2012 39 80 176
2012, the system was 2011 3.6 75 183
changed from a ten percent 2010 3.5 78 178
system to a 100 percent 2009 3.6 79 180
system, and China rose to 2008 3.6 72 180
40 in 2013. 2007 3.5 72 179
The number of sample 2006 3.3 70 163
countries and regions was 2005 3.2 78 158
45 in 1995, and China 2004 3.4 71 145
ranking 44th. And in 2017, 2003 3.4 66 133
the number of sample 2002 3.5 59 102
countries and regions was 2001 3.5 57 91
178, China ranked 77th. 2000 3.1 63 90
1999 3.4 58 99
1998 3.5 52 85
1997 2.9 41 52
Political and Economic Risk Consultancy’s
annual survey on corruption
 2.What is corruption in China?

• 1)Black corruption, Grey corruption, White

corruption
• 2) Economic corruption ,Non-economic
corruption, Corruption peculiar to Mainland
China
• 3) some special corruption in Mainland China
 Corruption
• the abuse of public power for private gain
• an official’s pursuit of personal financial gain by
abusing their public power or position
• Friedrich: “behavior which deviates from the norm
actually prevalent . . . [and is] deviant behavior
associated with . . . private gain at public expense”
• This definition specifically includes four kinds of
crimes: embezzlement of public property, bribe-taking,
illegally using public money, and other financial crimes
committed by officials (for example, smuggling).
 1)Black corruption, Grey corruption,
White corruption
• Such practices can be further categorized into three types:
• Black corruption, which includes clearly illegal practices
aimed to increase personal wealth, and constitute an
‘economic crime’;
• Grey corruption happens when the questionable practices
are done through legal, semi-legal, and illegal ways, such as
profit-making by favoring clients with personal connections,
or ignoring over- extravagance and waste in work-related
expenses;
• White corruption pertains to the ‘common practice’ of using
favoritism and personal connections in recruitment,
promotion, and resource allocation.
 2)Economic corruption ,Non-economic
corruption,Corruption peculiar to
China
Corruption by government officials in China usually includes
the following forms: graft, bribery, fraud, embezzlement,
extortion, smuggling, and tax evasion
(1)Economic Corruption:
• 贪污 embezzlement
• 贿赂 bribery
• 挪用公款 misappropriation
• 集体私分 unauthorized dispersion of state properties
• 非法所得illegal gains
• 偷税漏税 tax evasion and resistance
• 假冒商标 counterfeit of trademark
• 投机倒把 illegal speculation and profiteering
• (2)Non-economic corruption :
• 渎职Non-economic corruption includes
dereliction of duty
• 滥用职权including abuse of power
• 玩忽职守neglect of duty
• 徇私舞弊nepotistic malpractice
• 重婚bigamy
 (3)corruption peculiar to China
The crackdown on corruption began in 2012.
-illegitimate feasting, feudal rites (cadres
staging lavish, traditional-style weddings and
funerals)
违规接受宴请及节礼
-illegal imprisonment and torture
非法监禁和酷刑
 3)the main special corruption forms
• (1)the Form of “NO.1 leader Corruption”(一把手腐败)
• (2)the Form of Personnel Management Corruption(用
人腐败)
• (3)the Form of Collectively Practiced Bribery
Corruption (集体贿赂)
• (4) the Form of Public Money Consumption Corruption
or Power Abuse Corruption(行业不正之风和铺张浪费)
• (5) the Form of Public Project Corruption(工程腐败)
• (6) the Form of Examining and Approval Power
Corruption(审批腐败)
3. The features of Corruption Case
1)腐败高官化
2)腐败大案频发
3)腐败群体化
4)腐败期权化
5)小官大贪化
 1) Senior cadres become subjects of
corrupt actions腐败高官化
It‘s these so-called ’tigers’(老虎) that represent
the major concern for the CCP.

From 1949-2012, more than 145 officials of

provincial or ministerial level and above were
suspected corruption, 2.3 per year. After 18th NC,
about 45 people officials of provincial or
ministerial level and above were investigated
every year, about 20 times as much as before.
 2) Big cases of corruption have
increased in number腐败大案频发
 3)Corruption as a collective venture
腐败群体化
collective-collision-committed corruptions
have become more popular and prominent
 4) Latent corruption increased.
腐败期权化
• the latency period, defined as the time from
when corruption was committed to when the
case was uncovered, became increasingly
longer
 5) Petty official, big greed
小官大贪化
• It’ s these so-called ‘flies’(苍蝇) that represent the
major concern for the CCP.
• Two types:
• control money；manage the project or resources
• In the latest case, a low-ranking official with an
agricultural service center in Beijing's Changping
District stole around 800-million yuan for his personal
investments.
• "Grass-roots officials are closer to the common people.
As such, their misdeeds tend to gain much more
attention among the locals than high-ranked officials."
• 34 township and below
officials have involved in
more than 10 million Yuan of
corruption, 9 people involved
in corruption billions of dollars.
since 2000.
• Rapid urbanization in China
has brought new development
opportunities to what were
once sleepy outlying villages
and town. Real estate and
construction within these areas
is big business and the local
officials responsible for
overseeing land sales and
building permits can reap
enormous under-the-table
profits. There’s not enough
transparency, particularly at
the local level, to address the
problem.
4.Why corruption is rampant in China?
1)A State Power-oriented Society
2)A Rule of Mandate System
3)A Personality Bureaucracy
4)Inadequate Regulatory Control
5)Gift-giving and Guanxi-building Culture
 1)A State Power-oriented Society
• A "Diversity-orderly
Structure" of Chinese
Traditional Society
差异格局
• Factions
 2)A Rule of Mandate System
• a rule of law system
• a rule of mandate system
• What’s mandate?
• On the first point, mandates may set different
standards than the law or imply contradictory standards.
• Second, under mandates, the standards for corruption
are relative rather than absolute.
• This relative standard for corruption grows out of an
institutional difference, a mandate-based governing
system versus a law-based governing system.
 A rule of mandates
• Under a “rule of mandates,” the regime does not hold its officials
accountable to fixed standards but rather to relative standards.
Instead of directing officials to implement the regime’s laws and
policies unconditionally, the party directs them to implement a
subset of “mandates” according to their relative prioritization.

• Mandates do not simply represent an alternate set of laws parallel to

the public body of laws. In contrast to a body of laws, mandates are
directives that are hierarchically ranked against each other. Lower
officials are expected to give more weight to the higher priority
mandates, and they are authorized to adjust the implementation of
laws and lower priority mandates to aim at the desired ends. In this
system, the implementation of laws is thus conditional on their
compatibility with higher priority mandates.
 3)A Personality Bureaucracy:

a ‘three-not-policy’ 三不政策
• For instance, the former secretary of a district
committee of CCP, who was the top official in
charge of that area instituted a ‘three-not-policy’
whereby all decisions made by him were not
subject to review by the party organization; party
loyalists appointed by him did not have to go
through performance appraisals; and his personnel
decisions did not need consultation with the CCP
commission’
 4)Inadequate Regulatory Control
• China’s top-down anti-corruption
crusade has suffered these problems:

• 上级监督太远 • Central supervision over corruption is

too remote;
• 同级监督太软
• Colleague supervision is too soft;
• 下级监督太难
• Public supervision is too difficult;
• 纪委监督为时太晚
• Disciplinary inspection is too late
 5)Gift-giving and Guanxi-
building(connections)Culture
• Guanxi relationships can be generally
categorized into two areas: business
to government relationships and
business-to-business relationships.

• A Guanxi relation between the

business and government is most
likely to be associated with corruption
and is when a businessperson uses his
or her Guanxi connections to
someone in the government for gain.

• As China is a highly relationship-

oriented society based on Guanxi , it
is not surprising that white corruption
is pervasive throughout the country.
 5.Anti-corruption Campaigns
• 1)The five anti-corruption campaigns
• 2) anti-corruption efforts and measures
 1)The five anti-corruption campaigns
• (1)the first campaign began in 1979, with the formation
of the Discipline Commission of the CCP Central
Committee, but the effectiveness of it was largely
undermined by the shrinking of morals after the
Cultural Revolution (1965 to 1976). However,
beginning in late 1983, the CCP with the intent of
dealing with the changes in values that occurred as a
result of the cultural revolution issued a Party
Rectification which laid out goals and requirements
designed to rectify the ‘unhealthy tendencies’ of using
one’s position and power to seek personal gains, and to
prevent irresponsible bureaucratic work practices.
1)The five anti-corruption campaigns
• (2)The second anti-corruption campaign,
which began in late 1983 and lasted until early
1987, concentrated on consolidating party
organizations. During this movement, a large
number of party members who had violated
party discipline or engaged in corrupt activities
were punished, including 35, 616 senior
officials at the county level and above.
1)The five anti-corruption campaigns
• (3)The third official campaign began in 1987, and
broadened its focus to include not just party
officials but also state personnel. The campaign
included a launch of a large-scale ‘clean-up’
campaign against corruption, with a national
steering committee led by a vice-prime minister
with the announced purpose being to ‘prevent
power from entering the market’. ‘Corruption was
no longer seen merely as a matter of party spirit
or work style but as the economic wrongdoing of
government officials’.
 1)The five anti-corruption campaigns
• (4)The fourth campaign began in 1992, when
China formally embraced the idea of a ‘socialist
market economy’. ‘It was at this time that the
party acknowledged that fighting corruption was a
difficult long-lasting and comprehensive task that
required constant attention instead of periodic
political campaigns. Around this same time, there
was emerging recognition among academics that
corruption was a phenomenon deeply rooted in
social and economic problems rather than a
situation of isolated individuals lapsing from
moral principles’.
 1) The five anti-corruption campaigns
• (5)The latest, launched by Xi Jinping’s administration since
the CCP’s 18th Congress in Nov. 2012, has been
unprecedented in intensity, duration and the level of party
ranks affected.
• The Work Plan (2013-2017) of Building the Corruption Punishment and
Prevention System was an important guiding document over the next few
years. In this document, the Chinese government admits that there is much
work to do for building a clean and honest government. The document
further states that “corruption prevails and the soil of breeding corruption
exists; fighting corruption remains difficult and complicated; and
formalism, bureaucracy, hedonism and extravagance seriously damage the
Party’s image.” The government also made it clear that “the Party and
Nation will be fatally damaged if the work style and corruption problems
cannot be resolved.”
 2)Institutionalized Control Methods

• (1) Laws and regulations to crack down on

corruption
(2)Extensive Administrative Reform
• (3) Social media provide a channel for public
participation
(4)Moral education
 (1) Laws and regulations to crack
down on corruption
• Law
• China has revised the Budget Law to better manage government revenues
and spending so as to strengthen supervision on power. The law defines the
government budget in four parts: the general budget, the budget for
government-managed funds, the budget for state-owned assets and the
budget for social insurance funds. All the four parts would be subject to
supervision.
9th Amendment to Criminal Law ，2015
• New crime of offering bribes to close relatives of government officials
• Impose fines to corruption /bribery related crimes
• Replacement of amount –based standards for sentencing bribe-taking
crimes with more general criteria
• Regulations
• 中共中央、国务院《党政机关厉行节约反对浪费条例》Party and
Government Regulations for Strict Economic Practice to Combat
Waste
• 中组部《关于进一步做好领导干部报告个人有关事项工作的通知》
• Notice to improve the system of reporting the significant personal
affairs
• 财政部《关于推进省以下预决算公开工作的通知》
• Notice to advance fiscal transparency in the provincial government
and below
• 中宣部等五部委《关于制止豪华铺张、提倡节俭办晚会的通知》
• Notice to stop the trend of extravagant dinners
 Eight Rules on Official Behavior
(八项规定)
• 1. Leaders must keep in close contact with the grassroots. They must understand
the real situation facing society through in-depth inspections at grassroots. Greater
attention should be focused on places where social problems are more acute, and
inspection tours must be carried out more thoroughly. Inspection tours as a mere
formality should be strictly prohibited. Leaders should work and listen to the public
and officials at the grassroots, and people's practical problems must be tackled.
There should be no welcome banner, no red carpet, no floral arrangement or grand
receptions for officials' visits.
• 2. Meetings and major events should be strictly regulated, and efficiency
improved. Political Bureau members are not allowed to attend ribbon-cutting or
cornerstone-laying ceremonies, or celebrations and seminars, unless they get
approval from the CPC Central Committee. Official meetings should get shortened
and be specific and to the point, with no empty and rigmarole talks.
• 3. The issuing of official documents should be reduced.
• 4. Officials' visits abroad should only be arranged when needed in terms of foreign
affairs with fewer accompanying members, and on most of the occasions, there is
no need for a reception by overseas Chinese people, institutions and students at the
airport.
 Eight Rules on Official Behavior
(八项规定)
• 5. There should be fewer traffic controls when leaders travel by
cars to avoid unnecessary inconvenience to the public. There should
be fewer traffic controls arranged for the leaders' security of their
trips to avoid unnecessary inconvenience to the public
• 6. The media must not report on stories about official events
unless there is real news value. The regulations also ban worthless
news reports on senior officials' work and activities and said such
reports should depend on work needs, news value and social effects.
• 7. Leaders should not publish any works by themselves or issue
any congratulatory letters unless an arrangement with the central
leadership has been made. Official documents without substantial
contents and realistic importance should be withheld. Publications
regarding senior officials' work and activities are also restricted.
• 8. Leaders must practice thrift and strictly follow relevant
regulations on accommodation and cars.
(2)Extensive Administrative Reform
1978 Discipline Inspection supervise party members and leaders in various political
organizations on the basis of the party's disciplinary
regulation
198 The Ministry of supervise government officials and punish those who
Supervision violate administrative discipline
1990 The Anti-Corruption under the command of the Procuratorates to serve as the
Work Bureau major anti-corruption agency
1993- CCDI and MOS joint play a coordinator role in anti-corruption work among
work various anti-corruption agencies
2014 The CCDI dispatches the discipline inspection agency to
the central organizations of the Party and state in a
unified name and management.
2014 the CCDI established three new offices, one to supervise
the discipline inspectors themselves.
2018 China will establish a national supervisory commission.
 Reform of CCDI
• 中纪委派驻纪检组
• The CCDI dispatches the discipline inspection agency to the central
organizations of the Party and state in a unified name and management.
Dispatched agencies are responsible for its superior level of inspection
agency. And the CCP will also sharpen the efficiency of inspectors
dispatched to provincial governments, large SOEs and public institutions to
investigate.
• 双重领导
• The dual leadership system of the Party’s discipline inspection was
promoted to strengthening the CCDI’s leadership over the lower Discipline
Inspection Commissions in 2012.
• 纪检监察干部监督室
• Sharing one organizational structure, the CCDI and MOS have integrated
six departments into three and established three new offices, including two
discipline inspectorates and one to supervise the discipline inspectors
themselves.
 Uniting five-net as one(五网合一)
• Ministry of supervision
• National Bureau of corruption prevention
• the window to Rectify party conduct
• Corruption control in the construction field
• People.com.cn, Xinhuanet.com, Chinanews.com and
other major web sites simultaneously launched a
complaint center for combating
corruption to encourage citizens to
report suspicious behavior. In July
2013, the State Bureau for Letters and
Calls fully opened the online
complaint handling column.

• In September 2013, the CCDI and the

MOS launched their web site
(www.ccdi.gov.cn) based on the
original functional web site and
created “I have a complaint,”
“exposure table” and other columns
which the internet users favor a lot.
 (4)Moral education
Anti- four undesirable work styles
• --rolling out “massline campaign” with the stated goal of
eliminating the “four undesirable work styles”: formalism,
bureaucracy, hedonism and extravagance. （反四风）The mass line
campaign emphasizes the need for Party officials to learn from and
ultimately be accountable to the general public. Accordingly,
grassroots officials (who have the most interaction with the public)
were the major target of the initiative.
• Self-criticisms 自我批评
• --During the campaign, officials were encouraged not only to
perform self-criticisms of their work styles, but to increase “good
deeds” done for their communities. The entire campaign was an
attempt to not only weed out corruption but to win back the hearts of
the Chinese people.
• the three-style construction 三大作风建设
 6.The new reform:
National Supervisory Commission
establish a national supervisory commission (国家监察委员
会)and push the stipulation of a law on national supervision, as
part of efforts to reform the state supervisory system.

• China began to pilot supervisory system reform in Beijing

Municipality and the provinces of Shanxi and Zhejiang in
2016.
• The pilot work will see the establishment of local
supervisory commissions at three levels - provincial,
municipal and county - in order to form an integrated
supervision system that will be "unified, authoritative and
efficient” .
 The PRC Supervision Law:
（1）The Commission’s Institutional Status
• One government, One commission，Two
chambers (一府两院一委)
• -establishes the National Supervision
Commission as a branch of government. It is
nominally co-equal with the State Council,
Supreme People’s Court (SPC) and Supreme
People’s Procuratorate (SPP)
• -the Commission has the authority to supervise
the State Council, as well as SPC and SPP,
 the anti-corruption functions are
scattered in different departments
Organization Function Power
CCDI 党纪监督 enforce party discipline — including party loyalty,
anti-graft, and ethical and lifestyle requirements —
against Party members
MOS 行政监察 supervise the minority of civil servants who were
not CCP members, investigating graft,
misappropriation of public funds, and other duty-
related violations
SPP 反贪污、反渎职、 handle bribery and dereliction of duty cases or the
职务犯罪 prevention of duty-related crimes under
procuratorates
MPS 经济侦查
Audit office 审计
 （2）Function
• The anti-corruption functions of the MOS, the
corruption prevention bureau of SPP have now
been transferred to the Commission.
• CCDI turn evidence of criminal wrongdoing
over to the state for prosecution.
• were responsible for investigating various
kinds of corruption, and malfeasance.
 （3）Organization
CCDI and NSC
• The discipline inspection and supervision organs
are to be co-located and “integrate” the
enforcement of party discipline and state
supervision. 合署办公
• They will “operate as one set of working
institutions with two differently named organs,”
(⼀套⼈⻢，两块牌⼦)an arrangement that had
previously described the MOS, which similarly
shared offices, organizational structure , personnel,
and a website with the CCDI.
• How to operate ?
 (4)Who will be monitored?
• supervise all public personnel who exercise public power （所有⾏使
公共权⼒的⼈）
• six categories of people:
• According to the law, the supervisory authority will have six categories of public
officials to monitor:
• – the Chinese Communist Party organs, the NPC organs, administrative organs, the
CPPCC organs, supervisory organs, judicial organs , Procuratorial organs, civil
servants of democratic parties and chambers of commerce and federation, and
personnel managed by reference to the Civil Servants Law of the People’s
Republic of China;
• – personnel engaged in official duties in organizations authorized by laws and
regulations or entrusted by state authorities to administer public affairs;
• – Managers of state-owned enterprises
• – Persons engaged in management in public education, scientific research, culture,
health care, sports and other units
• – Service management personnel;
• – other person who performs public law.
60million
• Controversies :
• 1.The national supervisory commission is produced by
the people‘s national Congress , and is responsible for
it, supervised by it. The National Supervision
Commission’s director is “elected” by, and reports to,
the NPC. However, the Commission has the authority
to supervise the NPC.
• NSC don’t supervise the deputies and organizations of
NPC, but the staffs working for NPC.
• When he carries out the duties, he has the right
of exempting for comments and conducts.
• 2. personnel engaged in official duties in
organizations authorized by laws and regulations
or entrusted by state authorities to administer
public affairs
China Securities Regulatory Commission(CSRC)
证监会
China Banking and Insurance Regulatory
Commission 银保监会
The women federation
• 3.Persons engaged in management in public
education, scientific research, culture, health
care, sports and other units
Who are the persons engaged in management?
• 4.Service management personnel
• Balance the relationship between anti-
corruption and the autonomy of society
 (5)Who will supervise the NSC?
Supervised by the higher level
The dual leadership system
• Who can hold the post of supervision?
• Is it necessary to pass the legal qualification
examination?
• How to set up the hierarchy system?
• How to promote?
• the welfare of the inspector?
 (6) Procedural Concerns
specific provisions on the supervision, investigation and disposal of the three
tasks of the inspection commission.
• Oversight 监督– The supervisory authority supervises and examines the
performance of public officials in accordance with the law, impartiality,
integrity in politics, and ethics.
• Surveys 调查 – The supervisory authority conducts investigations into
unlawful and professional crimes such as corruption, bribery, abuse of
power, neglect of duties, power rent-seeking, transfer of profits,
malpractices for personal gain and waste of State assets.
• Disposal 处置– The supervisory organ makes decisions on the government
affairs against the illegal public officials according to the relevant laws;
makes recommendations on the supervision of the problems existing in the
exercise of their functions and powers; conducts accountability to the
leaders who perform unfavorable duties and neglects their duties; Criminal,
the investigation results transferred to prosecutors to prosecute.
• The supervisory authority can “detain” （留置）the suspect ,but the measures is
prone to torture and other illegal means.

• CCDI “双规双指”
“在规定的时间、规定的地点 、就调查涉及的事项作出说明”
“指定时间，指定地点，交待问题”

• Where to “detain” the suspect? Detention house or other places?

• How long to “detain" the suspect ? 3months +3 months
• Who can decide to “detain" the suspect ? the collective decision of the supervisory
commission

• When the supervisory authority investigate the people who are suspected of crimes,
they can take coercive measures to deprive them of their freedom and property
rights. But ,the investigations of the supervisory authority are not bound by the
criminal procedure law.
• In the meantime, the law clarified the powers of supervision of the inspection commission and
reviewed 12 items of interrogation, interrogation, inquiry, inquiry, freezing, transfer, seizure,
seizure, search, inspection, appraisal, Specific measures are to be taken, including:
• – The supervisory authority has the power to collect and obtain evidence from relevant
entities and individuals according to law.
• – For those suspected crimes of corruption, bribery and dereliction of duty, the supervisory
organ may conduct interrogations asking for information about suspected crimes;
• – During the investigation, the supervisory authority may ask witnesses and other personnel;
• – According to the work requirements, you can inquire and freeze the deposits, remittances,
bonds, stocks, fund shares and other assets of the suspected units and individuals in
accordance with the provisions;
• – The supervisory organ may investigate the suspected culpable criminals and possible
• – Performing stringent approval procedures and taking technical investigation measures;
• – Approved by the supervisory authority at or above the provincial level for the purpose of
conducting a search of the body, articles, residences and other relevant places of persons who
hide the informants or criminal evidences; , You can take measures to restrict the exit of the
respondents and related personnel .
• How to subject supervision investigations to
China’s criminal procedure law and judicial
oversight?
• ——establish procedures intended to restrain
improper behavior and abusive treatment of
suspects by supervision personnel
• ——impose confidentiality obligations, calls for
internal reporting of any attempt to interfere with
a case, and establishes recusal and conflict-of-
interest rules
• Controversies：
• ——Individuals under supervision are not entitled to a
lawyer or other criminal procedural protections that
help prevent abuse during investigation.
• —— Before starting the filing and investigation
procedure, the survey evidence collected by the
Commission can all be transferred to the prosecution‘s
evidence, so the evidence collection process is not
constrained by the due process, and can ‘t be included
in the procedure of excluding illegal evidence.
 (7)Who Supervises the Supervisors?
• The national supervisory commission is elected by the
people‘s congresses, but does not report work to it.

• Work report or Special work report