Julia Kwong - The Political Economy of Corruption in China

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THE POLITICAL ECONOMY OF CORRUPTION IN CHINA

Studies on Contemporary China

THE POLITICAL ECONOMY OF CHINAS SPECIAL ECONOMIC ZONES

George T. Crane

WORLDS APART

RECENT CHINESE WRITING AND ITS AUDIENCES

Howard Goldblatt, editor

CHINESE URBAN REFORM

WHAT MODEL NOW?

R Yin-Wang Kwok, William L Parish, and Anthony Gar-on Yeh with Xu Xuequang, editors

REBELLION AND FACTIONALISM IN A CHINESE PROVINCE

ZHEJIANG, 19661976

Keith Forster

POLITICS AT MAOS COURT

GAO GANG AND PARTY FACTIONALISM IN THE EARLY 1950s

Frederick C. Teiwes

MOLDING THE MEDIUM

THE CHINESE COMMUNIST PARTY AND THE LIBERATION DAILY

Patricia Stranahan

THE MAKING OF A SINO-MARXIST WORLD VIEW

PERCEPTIONS AND INTERPRETATIONS OF WORLD HISTORY IN THE PEOPLES REPUBLIC OF CHINA

Dorothea A.L Martin

POLITICS OF DISILLUSIONMENT

THE CHINESE COMMUNIST PARTY UNDER DENG XIAOPING, 19781989

Hsi-sheng Chi

CONQUERING RESOURCES

THE GROWTH AND DECLINE OF THE PLAS SCIENCE AND TECHNOLOGY COMMISSION FOR NATIONAL DEFENSE

Benjamin . Ostrov

THE PARADOX OF POWER IN A PEOPLES REPUBLIC OF CHINA MIDDLE SCHOOL

Martin Schoenhals

CHINAS ECONOMIC DILEMMAS IN THE 1990s

THE PROBLEMS OF REFORMS, MODERNIZATION, AND INDEPENDENCE

Edited by the Joint Economic Committee, Congress of the United States

CHINA IN THE ERA OF DENG XIAOPING

A DECADE OF REFORM

Michael Ying-mao Kau and Susan H. Marsh, editors

DOMESTIC LAW REFORMS IN POST- CHINA

Pitman B. Potter, editor

POLITICS AND PURGES IN CHINA

RECTIFICATION AND THE DECLINE OF PARTY NORMS, 19501965

Frederick . Teiwes

MORNING SUN

INTERVIEWS WITH POST-MAO CHINESE WRITERS

Laifong Leung

CHINESE FIRMS AND THE STATE IN TRANSITION

PROPERTY RIGHTS AND AGENCY PROBLEMS IN THE REFORM ERA

Keun Lee

THE MARKET MECHANISM AND ECONOMIC REFORMS IN CHINA

William A. Byrd

CHINA, THE UNITED STATES, AND THE SOVIET UNION

TRIPOLARITY AND POLICY-MAKING IN THE COLD WAR

Robert S. Ross, editor

AMERICAN STUDIES OF CONTEMPORARY CHINA

David Shambaugh, editor

CHINAS AUTOMOBILE INDUSTRY

POLICIES. PROBLEMS, AND PROSPECTS

Eric Harwit

DECISION-MAKING IN DENGS CHINA

PERSPECTIVES FROM INSIDERS

Carol Lee Hamrin and Suisheng Zhao, editors

PRIVATE BUSINESS AND ECONOMIC REFORM IN CHINA

Susan Young

MAKING URBAN REVOLUTION IN CHINA

THE CCP-GMD STRUGGLE FOR BEIPING-TIANJIN, 19451949

Joseph K. S. Yick

CHINAS ECONOMIC FUTURE

CHALLENGES TO U.S. POLICY

Joint Economic Committee, Congress of the United States

THE POLITICAL ECONOMY OF CORRUPTION IN CHINA

Julia Kwong

FAREWELL TO PEASANT CHINA

RURAL URBANIZATION AND SOCIAL CHANGES IN THE LATE TWENTIETH CENTURY

Gregory Eliyu Guldin, editor

PROVINCIAL STRATEGIES FOR ECONOMIC REFORM IN POST-MAO CHINA

Peter T. Y. Cheung, Jae Ho Chung, and Zhimin Lin, editors

Studies on Contemporary China

THE POLITICAL ECONOMY OF CORRUPTION IN CHINA

JULIA KWONG

An East Gate Book

First published 1997 by M.E. Sharpe

Published 2015 by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
711 Third Avenue, New York, NY 10017, USA

Routledge is an imprint of the Taylor & Francis Group, an informa business

Copyright 1997 Taylor & Francis. All rights reserved.

No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers.

Notices
No responsibility is assumed by the publisher for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwise, or from any use of operation of any methods, products, instructions or ideas contained in the material herein.

Practitioners and researchers must always rely on their own experience and knowledge in evaluating and using any information, methods, compounds, or experiments described herein. In using such information or methods they should be mindful of their own safety and the safety of others, including parties for whom they have a professional responsibility.

Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe.

Library of Congress Cataloging-in-Publication Data
Kwong, Julia.
The political economy of corruption in China / Julia Kwong.
p. cm.
An East Gate book.
Includes bibliographical references.
ISBN 0-7656-0086-2 (cloth : alk. paper).ISBN 0-7656-0087-0 (pbk : alk. paper)
1. Political corruptionChina. 2. ChinaPolitics and government1949
I. Title.
JQ1509.5.C6K961997
320.951dc21
97-13320
CIP

ISBN 13: 9780765600875 (pbk)
ISBN 13: 9780765600868 (hbk)

Contents

There were numerous reports in the Chinese and foreign press on the abuse of power by state officials at every level in the late seventies and eighties, but I had never experienced it personally on my many visits to China until 1989. On this trip, a Chinese friend who worked at a university secured me accommodation in a metropolitan center by giving the hotel manager a box of imported chocolate. On the same trip, I was offered the opportunity to make some money by buying a television set and other electrical appliances from the Friendship Store, a prerogative accorded to foreign visitors at the time; my contact would supply the buyers, and I would make about 300 yuan on each piece. During a discussion of collaborative research, an academic colleague suggested that his wife visit North America as one of the conditions.

These acts may not be clearcut manifestations of corruption but they are certainly inappropriate from a Western point of view. Such improprieties from fellow academics whom I had held in high regard over the years shocked me. True, they were looking after my interests and the means used were not necessarily illegal, but their actions were disturbing especially given the puritanical standards once held in Communist China, where cadres were criticized for eating a few peanuts owned by the state and were expected to sacrifice everything for the collective. If these academics, traditionally regarded as icons and custodians of morality in Chinese society, would so openly make such offers to make money and personal gains, I realized that perhaps corruption had become widespread and a regular part of Chinese life.

While this study on corruption stemmed from my personal encounters in the late eighties, my interest extends beyond understanding its proliferation in that particular period. Scholars, such as Jean Oi and Connie Squires Meaney, have examined corruption in rural and urban settings, and Alan P.L. Liu has analyzed reports in the

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