Corruption and Reform in China

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In The Media

Corruption and Reform in China

Pervasive corruption is causing increasing unrest in China, and while political transition has sparked hopes for reforms, vested interests pose a daunting challenging.

By Yukon Huang

Published on Nov 8, 2012

Source: BBC World News

Speaking on BBC World News, Carnegie's Yukon Huang explained that the Chinese economy is doing reasonably well compared to rest of world. The main concern for the Chinese people is pervasive corruption, he argued. Recent high-profile cases, involving senior officials and large amounts of money, and recent revelations of the activities of officials’ relatives have added fuel to the fire. Corruption is now affecting not just common people, but also the upper echelons of government. Cases of mass unrest in provinces are on the rise, and spending on domestic security now exceeds military spending, Huang explained.

China’s leadership transition has caused a burst of optimism among some observers who hope the new generation of leaders will implement political reforms, Huang continued. Analysts in Beijing are speculating whether the state sector and financial sector will be reformed. But vested interests are standing in the way of this reform process. The great irony in China is that these vested interests only arose because the economy was doing so well, Huang said. In a weak and unproductive economy, corruption is not very profitable. But when the economy grows quickly, there is quite a bit to be gained. In China today, the vested interests of state enterprises and party officials are very powerful, he concluded.

About the Author

Yukon Huang

Senior Fellow, Asia Program

Huang is a senior fellow in the Carnegie Asia Program where his research focuses on China’s economy and its regional and global impact.

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Carnegie does not take institutional positions on public policy issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of Carnegie, its staff, or its trustees.

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