Zhang Dejiang

Corruption Report

Title: Corruption amongst senior leadership: Zhang Dejiang

By: Jeff Rocero

                        As a result of the Bo Xilai ousting from the Communist Party of China, a spot was open for someone to take. The one who was selected was Zhang Dejiang. Bo Xilai was ousted after corrupt notions were brought up against him, such as trying to pay off a police officer to cover up the story that his wife murdered an English businessman. Zhang Dejiang has now taken over Bo’s place, but there are instances in which Zhang has also acted corrupt. Before going into what types of corruption he has been involved in, it is first important to note Zhang’s background and upbringing.

            A princeling, Zhang is the son of Zhang Zhiyi, a former PLA major general, who served as deputy commander of the Artillery Force in the Guangzhou Military Region.[1] Zhang is considered to be a protégé of Jiang Zemin. He received an undergraduate education in economics at Kim Il Sung University in Pyongyang, North Korea (1980). He served as Vice-Premier in charge of energy, telecommunications, and transportation. Zhang was promoted to the Politburo Standing Committee, China’s paramount authority, in 2012 and appointed Chair of the National People’s Congress in March 2013.[2] After replacing Bo, many believe that Zhang would be more transparent than Bo was, however Zhang shows similar characters and views with Bo. A senior journalist said, "Zhang Dejiang is like Liaoning governor Bo Xilai. Bo Xilai manipulates the media to promote himself, while Zhang Dejiang manipulates the media to promote his grandiose plans."[3]  It is widely believed that Zhang owes his appointment as Guangdong party chief to Jiang Zemin, but is not considered a part of the "Shanghai gang" surrounding Jiang.[4]There is speculation that Zhang was allowed to remain in power in Guangdong because he loyalties were with Hu Jintao. Critics of Zhang say he obtained power through his good relationships with senior leaders instead of obtaining power through merit achievement. From the limited available information, it seems that Zhang Dejiang, like Bo, embraces the authoritarian hand and has no desire to liberalize speech or press freedom.[5] He has various similarities with the ousted official and had his own share of corruption. Zhang has been known to cover up stories that would shine a bad light upon him; this is exemplified through the Chinese SARS outbreak.

            Dejiang has a strong hand on the regulation of media and can restrict it whenever he pleases, an example of this would be the media covering the SARS outbreak. Zhang's political record is alleged to have been blemished by incidents while in Guangdong, according to the U.S.-China Economic and Security Review Commission, which claimed he was implicated in efforts to conceal the SARS epidemic. [6] The SARS virus spread rapidly within day and the virus seemed to be everywhere within the country. Mainland rumors became a Hong Kong reality as hospitals were overwhelmed with contagious patients who were deteriorating in just 24 hours from high fever to oxygen deprivation.[7] The epidemic was missing from the headlines, due to the Chinese government; involving Zhang Dejiang imposed a news blackout. As the first cases were reported on the eve of the Chinese New Year, Zhang Dejiang halted the spread of the media. As he explained to his deputy, according to a source who requested anonymity, "If the newspapers are not going to responsibly cover the matter, then why should we let them write about it?" [8] The way in which Zhang completely censored any media from covering the SARS can be partly to blame for the spread of the virus. From the limited available information, it seems that Zhang Dejiang, like Bo, embraces the authoritarian hand and has no desire to liberalize speech or press freedom. This is an example of how corruption is still prevalent among the high-ranking officials. Although Zhang is a less corrupt official than Bo was, he is still a corrupt official nonetheless.

Endnotes:

[1]http://www.cnn.com/interactive/2012/09/world/china.whos.who/index.html

[2] http://chinese-leaders.org/zhang-dejiang/

[3]  Leu Siew Ying, "Guangdong's Leaders Pass Muster," South China Morning Post (2012).

[4] Mimi Lau, "Zhang on the ascent as he takes Chongqing Post," South China Morning Post (2012).

[5] http://sinostand.com/2012/03/15/zhang-dejiangs-political-baggage/

[6]http://www.cnn.com/interactive/2012/09/world/china.whos.who/index.html

[7]http://trueamericans.gather.com/viewArticle.action?articleId=281474978790562

[8] Ibid.

"China has a different way to deal with corruption"

Video Response

By: Suzi Zambrano

Video By: TheYoungTurks

Video Title: "China has a different way to deal with corruption"

China is apparently very serious about cracking down on corruption. Their use of capital punishment is their way of proving this.  Dozens of corrupt government officials and businessmen have been executed withing the last 8-9 years. Many of these cases were extremely severe such as that of Wen Qiang, former director of the Chongqing Justice Bureau who had been convicted of corruption charges involving organized crime including accepting bribes, shielding criminal gangs, multiple counts of rape and failing to account for his cash and assets. But other cases, such as the one of Zheng Xiaoyu, makes you wonder if China is going to far with the executions of those involved in corruption. Zheng was the man behind the tainted pet food scandal in which caused hundreds of dogs and cats in the United States to die. Although Zheng has had previous convictions of corruption before, the Chinese government ultimately decided to execute him because Americans were no longer buying dog food made in China. China’s issues with food and product safety is not going to be solved with these types of executions. What this country really need is to tackle the issue of the absence of consumer protection. China’s way of dealing with corruption is in itself very corrupt.

Anti-Corruption Campaigns: Hu’s fight against corruption

Corruption Report

Title: Anti-Corruption Campaigns: Hu’s fight against corruption

By: Dario Ortega

            Leaders of contemporary China have made battling corruption a personal goal. Deng Xiaoping was the first to publicly acknowledge that corruption was a problem to both the survival of the Chinese Communist Party and the development of contemporary China. However, President Hu Jintao has made serious statements about identifying and bringing to a close the era of corruption within the Chinese Communist Party. But why be so public about a battling corruption?

            In 2005, the Hu regime launched a rectification campaign aimed at attacking the moral degeneration of the party. The success of this campaign has been questionable since it had very little effect on the national-level high party members while seriously affecting local and provincial party members; expelling over 44, 700 members of mid or high-ranking positions within the Chinese Communist Party. Although the effectiveness of this campaign is questionable, the fact that tens of thousands of party members were removed from office is a significant example of action.

            During these Hu anti-corruption campaigns, a push for a change in cultural thought about corruption was emphasized. Hu not only made anti-corruption efforts a pillar for his “Harmonious Society” speech, but emphasized that the youth of China must be turned away from such behavior. With the introduction of this new way of thinking of corruption, Hu engaged society to overturn a long-held belief that corruption is an inevitable part of governing. But why go through all the trouble?

            Here is where there is disagreement. Some argue that China is in a transitional phase. Gearing up to be a world power, legitimacy of the communist regime is vital to project its influence internationally. If corruption, and the acceptance of corruption by the government to continue, remains a cultural aspect of China, the regime will be less likely approved in the eyes of the world. Others argue, that there is a sociological change beginning to develop in China where internet based communication systems are making people more aware of corrupt acts and the government must appease these ‘netizens’ in order to maintain order. This is a valid argument since China has the largest population of internet users in the world, yet remains one of the most non-transparent governments in the world.

            Whatever the answer can be, it is important to pay close attention to the effectiveness and the publicity of these campaigns. The more the Chinese Communist Party pushes these anti-corruption campaigns publicly, the more sincere it makes itself seem.

Hu Jintao gives speech to 18th Communist Party Congress

Video: "China's Hu Jintao warns Party must tackle corruption"

Corruption in Business: Could China’s cloud computing be used for corrupt acts?

Corruption Report

Title: Corruption in Business: Could China’s cloud computing be used for corrupt acts?

By: Dario Ortega

Cloud computing is a new technology and has been recognized by the Chinese government as a vital piece to the puzzle to be connected for the prosperity of China. However, there are major concerns that China will use this technology to take part in corrupt acts sponsored by the government. By attacking American businesses in particular the Chinese government could impact the United States in a major way.

China has not been able to corner the automobile industry in the past, but it seems to be gearing up to do it any way it can for the future. Cloud computing has the potential to be a useful tool in this venture. This will have grave effects on the American economy. As the United States’ largest automobile provider, GM’s success is vital to the U.S. economy. However, GM’s success depends more on its ability to sell to China – GM’s sells in China rose a respectable 8 percent from 2011 to 2012, while they decreased by 3 percent in North America during the same time. China has its eyes set on the automobile market, but has no way of competing with its American partners any time soon. China’s automobile models are imported mostly by third-world countries, its largest importer being Algeria. Even the Chinese people prefer the foreign models to a domestic model, creating a domestic automobile market where foreigners rule. This ‘open’ market is hard to turn its back on despite the dangers posed by Chinese industrial espionage or close government-business connections. With the addition of cloud computing, economics once again overpowers security in the business realm. Cloud computing has the potential to seriously damage foreign businesses in China. This can include the American stronghold on China’s automobile market. 

But can cloud computing really change all that? The answer is yes. The illegitimate business practices practiced by Chinese businesses will not cease if GM data is transferred and processed in one location. On the contrary, if GM uses cloud services its ability to protect its property will decrease tremendously. Cloud computing brings more threats than just bribing senior executives, it entrusts data access codes and security codes to an outside source which

must retain them in order to properly provide a service. With all this power at the disposal of a cloud service provider such as Huawei – a Chinese company with ties to the Chinese government— the financial security of GM could be at stake. If GM is threatened, it could be argued by some that the U.S. economy itself is threatened, which in turn threatens U.S. national security. Evidenced by previous actions and the potential of exploiting the power entrusted in China by using their cloud computing services, it is essential that GM and other major U.S. companies operating in China take great precaution in conducting their business using cloud computing from Chinese service providers.

            The Chinese government is definitely capable of receiving this information through informal channels considering the nature of business in China in respect to the government. Huawei’s current CEO has been a Communist Party member since the early 1970s and was a member of the People’s Liberation Army (PLA). Huawei also provides military technology to the PLA. If these connections can lead to a barrage of corrupt acts on the part of the government to bring down a U.S. company that could hurt the U.S. economy is all in the realm of thought, however not fantasy.

Sources:

Bennet, Jeff. “U.S., China Keep GM Rolling,” The Wall Street Journal, February 14, 2013.            Accessed May 26, 2013. <http://online.wsj.com/article/SB10001424127887323478004578303691542781414.html>

“Cyber Security and Reliability in a Digital Cloud,” The United States Department of Defense, Defense Science Board, January 2013, Accessed June 1, 2013. <https://docs.google.com/a/coyote.csusb.edu/viewer?a=v&pid=gmail&attid=0.1&thid=3eec963b987c557&mt=application/pdf&url=https://mail.google.com/mail/u/0/?ui%3D%26ik%3D37c14ee32b%26view%3Datt%26th%3D13eec963b987c557%26attid%3D0%26disp%3Dsafe%26realattid%3Dda68aab6004269c7_0.1%26zw&sig=AHIEtbRR3Yz9N16wVLaEjKDSM9ufubQEA>

Young, Angelo. “GM, Ford, VW Dominate China's Auto Industry: Why Can't Chinese Companies Like SAIC, Dongfeng, Geely, And GAC Make Cars That People Want To Buy?” International Business Times, March 15, 2013. Accessed May 26, 2013. <http://www.ibtimes.com/gm-ford-vw-dominate-chinas-auto-industry-why-cant-chinesecompanies-saic-dongfeng-geely-gac-make#>

China Fights Corruption in Banking Sector

Article Review

By: Thomas Monteon

Article by: Simon Montlake

Article title: "Are China's Leaders Serious About Tackling Corruption? Normura Says Yes"

 Article Link: http://www.forbes.com/sites/simonmontlake/2013/03/26/are-chinas-leaders-serious-about-tackling-corruption-nomura-says-yes/

            Forbes’ article, “Are China's Leaders Serious About Tackling Corruption? Nomura Says Yes” by Simon Montlake, questions the effectiveness of Xi Jingping to end corruption in China. The article relies on sources and opinions given by investment bank Nomura. Nomura’s business is spread globally and has its roots in East Asia, with headquarters in Japan, China, Taiwan, etc. Stated on the their webpage, “Nomura is a leading financial service group and the preeminent Asian-based investment bank with worldwide reach.” So Forbes offers a perspective from an investment bank that has a lot at stake when businesses face corruption. However, Nomura has expressed that it does feel Xi Jingping’s campaign against corruption is genuine. The author explains how Nomura feels China’s leaders are taking steps in the right direction. Arguing that China’s reformist desire structure changes over economic growth. Montlake writes various steps that Nomura argues are helping combat corruption. An influence on reducing corruption in China is demonstrated by its leaders to set the example by removing themselves and their families from the private business firms. Strides toward this goal have been made Nomura argues, as Xi Jingping’s family has said to be leaving the telecommunication business. Analysts working for Nomura claim that China so committed to end corruption that even economic growth will be put second to this issue. This article shows us that China has won over some of the business investors with its anti-corruption campaign. If a worldwide investment bank like Nomura can trust China, then what problems should China business partners have? Montlake seems to question the endurance of China’s officials to fight corruption. Calling the readers to the attention of former premier Wen Jiabao and the scandal that exposed his family. Wen Jiabao was the focus of a New York Times article, which calls to attention the money made by his family during his time in office. This article shows there is faith in China, at least by Nomura, to stop corruption. China’s current leaders seemly have been taken steps to avoid corruption by leading by example. How long until another is exposed? What impact will it have on investment firms like Nomura? China faces a big problem with its image and now its up to its new leader Xi Jingping to stop corruption.

Chinese Political Thought: Confucianism, Communism, and Corruption

Corruption Report

Title: Chinese Political Thought: Confucianism, Communism, and Corruption

By: Dario Ortega

            Western political thought can be traced back to the ‘classics.’ Philosophers such as Plato, Aristotle, and Thucydides are the pillars of western political thought. However, China does not follow the same line of philosophical development. Chinese political thought originates from a different philosophy, Confucianism.  Confucianism influencing Chinese political thought is a useful concept to analyze when studying corruption in China because it provides an insight into the mind of the Chinese people and government officials.

            It would seem that Confucianism was the perfect fit for China and its government. In basic Confucian political thought, there is both an emphasis on order as oppose to rights or liberties, and an idea of a “rule of virtue.”

Since order is valued, there is very limited opposition to the concept of one ruler or regime having complete control of the government and country. Authoritarianism can thrive in a country whose people have engrained in their basic philosophical understanding that the government does not exist to protect rights, but on the contrary exists to maintain society from collapsing and develop prestige worldwide at all cost and by all means. This line of thinking not only legitimizes a regime such as the Chinese Communist Party; it provides the means by which such a regime can remain in power.

The means to remain in power are also supplemented by the concept of a “rule of virtue.” In classic Confucian political thought, rulers are thought to be both maintainers of order and protectors of virtue. This means that rulers in China are believed to be the moral compass of society. In contrast to the west, divisions in power, checks and balances, and regular elections, are just some of the ways that westerners show their general distrust of government. Government in the west is not a protector of values, or a beacon of society’s morals, it is the shield of society’s freedoms against the government itself. In China however, the government is allowed to obstruct both freedoms and the law because it is thought to be a protector of virtue, the shield against a change of what makes China particular and basically, ‘Chinese.’ This can be compared to the politburo of a communist state, which is the group of men responsible of being the moral and political ‘compass’ of society.

This study of Confucianism in Chinese political thought is vital because it provides a lense by which to perceive corruption in government. Is it corrupt to use one’s office to make money in a country where the government is responsible for order and virtue? Some would argue that it is not. As oppose to the west, corruption is not connected to a personal gain by betraying an institution or law; corruption in China is not seen as a legal issue, it is perceived as a failure to “rule with virtue.” Therefore, as oppose to a legal incident, corruption would be defined in China not by legal means but by moral or political means. With this in mind, there is no real surprise in the fact that the Party not the courts process corruption cases.

Sources:           

Ting, Gong. The Politics of Corruption in Contemporary China: An Analysis of Policy Outcomes. Westport, CT: Praeger Publishers, 1994.

Hu will combat corruption?

Corruption Report

Title: Hu will combat corruption?

By: Jeff Recero

            Throughout the years there have been apparent corruption within China, but ever since the Hu era there have been more strides towards cracking down on corruption in China. In speeches dictated by President Hu Jintao and other Politburo members, they have issued tough new warnings against cadres using their connections to help relatives get rich. For example, Hu vowed at a CCDI conference early this year to redouble efforts to combat power abuse and related misdemeanors. Hu also urged, the promotion of a corruption-free working style among senior cadres.[1] If corruption does not get solved effectively, the party will lose the people's trust and support.The entire party should "stay alert and fully appreciate the long-term complexity and arduousness of the fight against corruption, and make more efforts in fighting corruption and building a cleang overnment,"[2] Hu said.  The Communist Party of China (CPC)bears zero tolerance to corruption and the crackdown on it must be effectively strengthened, Hu Jintao said on Monday in his report to the 17th CPC National Congress.[3] "If we fail to handle this issue well, it could prove fatal to the party and even cause the collapse of the party and the fall of the state," Hu said, reading from his prepared text. "We should strengthen education about combating corruption and promoting clean government and improving the culture of clean government."[4]

He ordered leading officials at all levels, especially high-ranking officials, to readily observe the code of conduct on clean governance. The way in which Hu pushes for less corruption is for there to be more transparency amongst the government. Hu also pledged to tighten intra-Party democratic and legal oversight, as well as oversight through public opinion, to ensure that the people oversee the exercise of power and that power is exercised in a transparent manner.[5] Since the Hu era and the strides that he has made towards combat corruption has helped the Chinese government to become more accountable. The government continues to arrest official tied to corrupt acts. More than 668,000 Party members and government officials have been punished for violating the rules over the past five years, the CPC Central Commission for Discipline Inspection and the Ministry of Supervision announced in a statement last month.[6]

Endnotes:

[1] http://www.jamestown.org/single/?no_cache=1&tx_ttnews%5Bswords%5D=8fd5893941d69d0be3f378576261ae3e&tx_ttnews%5Bany_of_the_words%5D=PKK&tx_ttnews%5Bpointer%5D=5&tx_ttnews%5Btt_news%5D=36529&tx_ttnews%5BbackPid%5D=381&cHash=299ad462a8

[2] http://www.guardian.co.uk/world/2011/jul/01/chinese-president-corruption-communist-party

[3] "No tolerance to corruption: Hu Jintao" Xinhua News Agency (2007): 1.

[4] Keith B. Richburg, "Hu Opens Chinese Congress with Call to Fight Corruption," The Washington Post (2012).

[5] http://www.globaltimes.cn/content/743479.shtml

[6] Ibid.

"Got Guanxi?"

Video Title: "Got Guanxi?" 

Business Corruption and Cracking Down

Corruption Report

Title: Business Corruption and Cracking Down


By: Jeff Rocero

China has a complex business system and corruption is widely seen within this sector. China’s politically connected tycoons have cashed in on China’s real estate boom; nearly half of Forbes’ list of the 100 richest individuals in China in 2004 were real estate developers.[1] More significantly, Chinese societal rules change depending on one’s position.  Nepotism, corruption, bribery and blatant favoritism are all included with the corruption that is being seen within China. The main way to become successful in business is to know people that are higher up. There is corruption because people are getting picked based on ties and not on how well or how skilled they are at a job.[2] Corruption in Business is mostly seen through those who receive high ranking positions in the business sector due to the familial ties instead of based on merit. Business corruption is prevalent within China and with Chinese officials. The corruption in China business is a serious concern and needs to be dealt with, especially in terms bribery.

Almost every day the Chinese government arrests someone. A few years ago, it was the Communist Party secretary of Shanghai, Chen Liangyu. Recently the mayor of Shenzhen was sacked. The country's richest man, Huang Guangyu, founder of the electronics retailer Guomei, was arrested. [3] All of these leaders have been charged with taking bribes and many more continue to be arrested and chargedn for bribery. First, many employees are not loyal to the companies they work for. They think of themselves as free-agent entrepreneurs who use their employers as a way to make money, for themselves and for their guanxi social-circle network.[4] Guanxi, which is what most of what China business follows aids in the corrupt that is seen within business. The practice of guanxi plays a role in the way that business corruption is being

Guanxi is a cultural tie with china, it is the concept representing the conduct and the process of conduct of soliciting, receiving, offering or delivering a service by one party to another.The receiving or deliver a service usually comes in the form of money, as a way of giving thanks to their guanxi network. Guanxi can also be used to describe a network of contacts, which an individual can call upon when something needs to be done, and through which he or she can exert influence on behalf of another. Guanxi practice bolsters up that person ties with another, and there family receives the advancements as well.  This connection relies on social connections made between two parties.  Guanxi often leads to corruption in that it is hard to distinguish boundaries between business and social lives, and often time those working in business hire those closest to them, rather based on their merits or how experienced they are in that field. There have been examples of corruption within business and is  getting cleaned up. The newer generation is focused more on keeping it as less corrupt as possible. The good news is that commercial corruption is decreasing. Executives are starting to see that they can make more money conducting business honestly. Younger executives, especially ones who have studied abroad, know about Western business practices and will implement what they have learned abroad into the business of China, this will make the country more transparent and less corrupt.

Endnotes:

[1] Minxin Pei, "Dark side of china’s rise," Foreign Policy 153 (2006): 32

[2] "The way of Chinese business," Manufacturing Engineer 86 no. 5 (2006):20

[3] http://www.forbes.com/2009/10/07/china-corruption-bribes-leadership-managing-rein.html

[4] Ibid.