China’s Efforts to Combat Corruption and Build a Clean Government

V. Prevention of Corruption through System Reform and Institutional Innovation

Since the reform and opening-up drive was launched in 1978, especially since the beginning of the 21st century, China has ad-hered to the principle of controlling and combating corruption by way of development and reform. In view of the major fields and key links likely to breed corruption, vigorous efforts have been made to promote institutional reform and innovation, to establish new institutions and mechanisms that accord with the demands of the times and strive to prevent and control corruption at the very source.

Deepening the reform in the system of administrative examina-tion and approval. The Chinese government has been going all out to push forward reform in the system of administrative examina-tion and approval, and speed up the separation of the functions of government from those of enterprises, state asset management au-thorities, public institutions and market-based intermediaries to accelerate the transformation of the functions of the government. On the basis of comprehensively sorting out matters requiring administrative examination and approval, the state has sharply reduced or adjusted such matters. Since the reform of the adminis-trative examination and approval system was launched in 2001, various departments of the State Council have cancelled and ad-justed over 2,000 items requiring administrative examination and approval, and the local governments cancelled and adjusted in total over 77,000 items which used to come under this heading. The two numbers of items added up to over half of the former total of such items. As for the rest of the items, administrative service centers have been extensively set up to openly examine and approve them, an electronic monitoring system has been established to promptly monitor such examination and approval, and an accountability sys-tem and an information feedback mechanism have been established to enhance work efficiency and reduce the possibility of rent-seeking act of power.

Promoting the reform of the cadre and personnel system. China adheres to the principles of democracy, openness, competition and merit in establishing a scientific mechanism for selecting and ap-pointing cadres as well as a management and monitoring mecha-nism in this regard, aiming at increasing public trust in its selection and appointment of cadres, and preventing and combating cor-ruption at the very source in appointing cadres. By issuing in succession the Guidelines for Deepening Reform of the Cadre and Personnel System, Regulations on the Work of Selecting and Appointing Leading Party and Government Cadres, Supervisory Measures for the Selection and Appointment of Leading Party and Government Cadres (Trial), and Accountability Measures for the Selection and Appointment of Leading Party and Government Cadres (Trial), the CPC has drawn up a comprehensive plan for reforming the cadre and personnel system, made rigorous stipula-tions regarding basic principles, standards, procedures and methods for the selection and appointment of cadres, and tightened supervi-sion over the work of cadre selection and appointment. We stick to the standards of political integrity and professional competence, with the former being the most important. We comprehensively press ahead with such systems as democratic recommendation and assessment, opinion polls, preliminary investigation report, public announcement before appointment, as well as systems of exchange of posts and recusal for cadres, and vigorously promote open selec-tion and competition for posts, and spread and improve the system of appointing cadres to important positions by local Party commit-tees through voting.

Deepening the reform of the judicial system and working mechanism. Aiming to safeguard judicial justice, in accordance with the principles of scientifically allocating the power of investi-gation, supervisory power, adjudicative power and enforcement power, China is establishing a fair, efficient and authoritative so-cialist judicial system. A police discipline inspection system has been established and the systems of people’s assessors and people’s supervisors have been implemented to expand judicial democracy and promote judicial openness. Supervision over judicial activities has been intensified, and the exercise of discretionary power by judicial officers has been regulated. The accountability system has been improved for those enforcing the law wrongly and acting against law and discipline so as to ensure judicial justice.

Promoting the reform of the fiscal management system. Since 1998 the Chinese government has proposed the goal of establishing public finance, actively promoted the reform of the fiscal manage-ment system, and deepened the reforms concerning openness of departmental budgets, centralized treasury payment system, the separated management of revenue and expenditure, government procurement, and regulated transfer payment. So far, China has included revenues from administrative fees, government-controlled funds, compensated use of state-owned resources and state capital operations in the budgets or the range of separated management of revenues and expenditure, ultimately attaining the goal of having all of them turned over to the state treasury. China has initially es-tablished the basic framework of departmental budgets suited to its national conditions, and comprehensive use of budgetary and ex-tra-budgetary funds has been primarily realized, and the goal of “one budget for one department” has been achieved. The state promotes the reform of the work-related consumption system, such as use of vehicles for official duties and official receptions, to regulate work-related consumption by Party and government lead-ers. These measures have regulated the government’s management of money matters, increased the transparency of fiscal management and effectively hold in check corruption in the management and use of fiscal funds.

Quickening the reform of the investment system. To prevent corruption in the field of investment, the Chinese government is striving to establish a new type of investment system which fea-tures market-led investment, independent decision making by en-terprises, independent review of loans by banks, diversified forms of financing, standardized intermediary services and effective macro-control. In 2004, the State Council promulgated the Deci-sion on the Reform of Investment System, making an overall plan for deepening the reform of the investment system. Through the reform, enterprises have been gradually assured to make their own decisions in investment. The state has established and constantly improved a monitoring system for government investments, im-proved the systems of public announcement and accountability for major government investment projects, and tightened supervision over investment intermediary agencies. As for projects undertaken with investments from the central budget, the agent system is being tried out by over two-thirds of provincial-level governments so far.

Promoting the reform of the financial system. China separates the business operations of the Central Bank from those of commer-cial banks, as well as of banks from those of securities firms and insurance companies, and detaches policy-based finance from com-mercial finance. Efforts have been made to constantly strengthen and improve macro financial control, establish and improve the separated financial regulatory systems for banking, securities and insurance industries, tighten financial oversight to gradually regu-late the order of financial markets. The systems of information dis-closure and credit rating have been established and improved to promote the rapid, healthy development of the financial markets in the country. Efforts have been made to press ahead with a series of major financial reforms towards introducing the shareholding sys-tem in state-owned commercial banks, restructuring of securities firms, and equity reorganization of joint venture insurance compa-nies by injecting more funds from Chinese enterprises to gain con-trol, to further improve the corporate governance structure, fully sort out and manage historically accumulated financial risks, and initially establish a system to protect investors. Positive efforts are being made to promote the establishment of a payment system, extend the use of non-cash payment tools, improve the system of real-name financial accounts, and effectively prevent and severely crack down on corruption activities by means of bank accounts, securities markets and capital operations. A basic database of the credit of enterprises and individuals across the country has been established, and work has been done to speed up the construction of a unified credit information platform of the financial sector. Work has been done to establish a series of systems, such as system of customer identification, system of report and record of large-sum and suspicious transactions so as to strengthen regulation over anti-money laundering. These reform measures have not only pro-moted the standardized, healthy development of the financial sector, but also helped ward off financial risks and corruption.

Establishing a system of allocating resources by the market. The Chinese government prioritizes improving systems and tight-ening supervision and regulation to prevent corruption in allotment of public resources, trade of public assets and manufacturing of public products. With regard to construction projects, efforts have been made to speed up the establishment of an integrated and standardized tangible market, improve the legal regime to regulate bid invitation and bidding activities. In the grant of land-use rights, a system of open competition is being carried out to grant the right to use land for construction purposes, while land for commercial use is granted by way of bidding, auction, and for-sale notification. From 2001 to 2009, the area of state-owned land granted through bidding, auction and for-sale notification had increased from 7.3% to 85.3% of the total land area granted. In transaction of property rights, the government rules that the principles of compensation for equal value, openness, fairness, justice and competition must be observed. Regarding government procurement, an operation mechanism featuring mainly public bidding has been enforced, saving over 300 billion yuan of fiscal funds from 2002 to 2009. In the area of mineral resources development, the regulations for bid-ding, auction or for-sale notification concerning the grant of the rights to prospect and exploit mineral resources have been imple-mented rigorously, and any acts going against law and discipline in mineral resources development are to be investigated and punished seriously.

VI. Handling Cases of Corruption in Accordance with Law and Discipline

It is a most direct and effective means to combat corruption by investigating and dealing with cases of corruption in accordance with law and discipline. Upholding the principle that everyone is equal before the law and discipline, the CPC and the Chinese gov-ernment are serious in dealing with corruption among cadres who are Party members and state functionaries, maintaining a stern momentum in the checking of corruption.

China has prioritized cases of corruption to be investigated and handled in response to the different characteristics of corruption phenomena in different periods. In the 1980s, the crackdown was mainly aimed at serious economic crimes and speculative buying and selling by taking advantage of the double-track price system. In the 1990s, the focus was shifted to breaches of the law and dis-cipline by Party and government leading organizations, administra-tive and law-enforcement departments, judicial organs, economic management departments, and leading cadres above the county (division) level. The emphasis was placed on investigating and dealing with cases of embezzlement, misappropriation of public funds, negligence and dereliction of duty, taking bribes and bend-ing the law, and other official misbehavior and degeneration, and efforts were strengthened to investigate and deal with cases of cor-ruption in the fields of finance, real estate and engineering con-struction. In the 21st century, while making continuous efforts to handle cases in the above-mentioned aspects, the focus has been shifted to investigating and dealing with cases in which leading cadres take advantage of their control over personnel affairs, judi-cial powers, right to administrative examination and approval, and right to administrative law enforcement to act in collusion with lawbreaking businessmen, trade power for money, and solicit and take bribes, cases in which leading cadres provide protective shield for underworld and evil forces, and cases of serious infringement on the interests of the people, and cases of corruption that cause mass disturbances and major accidents due to negligence.

The CPC’s organs for discipline inspection and the govern-ment’s supervisory departments have all along persisted in investi-gating and dealing with cases of corruption in accordance with the law and discipline, making efforts to ensure that the facts are clear, the evidence is irrefutable, the verdict is correct, the handling is appropriate, formalities are complete and the procedure is lawful. All the links have been strictly regulated, including reporting, ac-ceptance of a complaint, preliminary examination, filing a case, investigation, trial, punishment, execution of punishment, and su-pervision and management of a case. The principle of handling all cases in a civilized and standard manner is upheld to safeguard the legitimate rights and interests of those who are under investigation, including the right of person, property right, right to defense, right of appeal and right to know.

The people’s procuratorates can, in accordance with the law, directly file cases of job-related crimes committed by state func-tionaries for investigation, such as embezzlement, bribery, derelic-tion of duty and infringement on citizens’ rights, and initiate public prosecution to the people’s courts on behalf of the state. Accepting reports on such crimes and cases transferred from relevant depart-ments, the procuratorial organs launch timely examinations and initial investigations of the clues of the reported crimes and materials re-garding the cases. For those cases in which criminal facts are evident and criminal liability needs to be prosecuted, the procu-ratorial organs file them for investigation in accordance with legal procedures, and ascertain the criminal facts of the suspects in ac-cordance with the law. Following the conclusion of investigation, the procuratorial organs shall deal with them in accordance with the law on the basis of ascertained facts and evidence. For those cases of which there are verified facts and ample evidence and for which criminal liability needs to be prosecuted in accordance with the law, the departments of the people’s procuratorates deal-ing with embezzlement, bribery, dereliction of duty and in-fringements on rights shall transfer them to the departments in charge of public prosecution for examination before the latter ini-tiate legal proceedings in the people’s courts. From 2003 to 2009, the people’s procuratorates at all levels filed for investigation more than 240,000 cases of embezzlement, bribery, dereliction of duty and infringements on rights. Battling the crime of taking bribes, China has improved a database on criminal records of bribery, and intensified efforts in punishing and preventing crime of bribery. In 2009, some 3,194 people were punished for their criminal li-ability in offering bribes.

As the judicial organs of the state, the people’s courts exercise juridical power independently in accordance with the law. In China, no person shall be found guilty without being judged as such by a people’s court in accordance with the law. For cases of corruption that the procuratorial organs have initiated legal proceedings in accordance with the law, such as embezzlement, bribery or derelic-tion of duty, the people’s courts shall try them in accordance with the law and make sentences in line with the principles of prescrib-ing punishments for specified crimes, equality of all before the law, and compatibility of crime, responsibility and penalty. All cases handled by the people’s courts shall be heard in public, except for those involving state or business secrets, privacy or minors. The people’s courts shall safeguard the procedural rights to which par-ticipants in the legal proceedings are entitled by law, and ensure that the accused enjoy fully the right of defense. During trials of corruption cases, the people’s courts shall adhere to the principle that all are equal before the law, no matter how important the posts those are accused of committing corruption hold or used to hold. Anyone whose acts of corruption constitute crimes shall be convicted and punished in accordance with the law. No privilege beyond the law is permissible, nor should the punishment be ag-gravated beyond the maximum prescribed by law because of their special social status or pressure from the public.

To ensure accurate application of the law and unify judicial standards, the Supreme People’s Court and the Supreme People’s Procuratorate have timely issued relevant judicial interpretations in accordance with the law on the basis of summing up experience in hearing of and initiating public prosecution for cases related to corruption, such as embezzlement, bribery and dereliction of duty, so as to promptly solve newly emerging problems in the work of trial and public prosecution. This has played an important role in directing people’s courts and people’s procuratorates at all levels to handle such cases properly.

China has launched a campaign to combat bribery in business. In recent years, major efforts have been made to deal with cases of commercial bribery in six major areas, namely, engineering con-struction, grant of the land-use right and mineral resources explo-ration and mining right, trade of property rights, purchasing and marketing of drugs, government procurement, and development of and deals in resources, as well as those related to bank credit, secu-rities and futures, commercial insurance, publishing and distribu-tion, sports, telecommunications, electric power, quality control and environmental protection. In addition, crackdown has also been launched on cross-border commercial bribery in accordance with the law and discipline. From 2005, when the special campaign against commercial bribery was launched, to 2009, over 69,200 cases of commercial bribery had been investigated and dealt with, involving 16.59 billion yuan in total.

The Chinese government has made the rectification of un-healthy practices that harm the interests of the people one of major tasks in the fight against corruption. A special campaign has been launched to clamp down on arbitrary price hikes, charges, fines and requisition of donations that harm the interests of the people in some localities and departments. Meanwhile, special inspection and other measures have been adopted to rectify problems infringing upon the interests of the people in rural land expropriation, urban resettlement, restructuring of state-owned enterprises, purchases and sales of drugs and medical services, as well as the problem of wage defaults haunting rural migrant workers. The state has speeded up the steps of reform, abolished agricultural tax and charges for compulsory education, and adopted a series of meas-ures in the reforms of the educational and health-care systems, thereby creating favorable conditions for rectifying unhealthy prac-tices that harm the interests of the people.

The Chinese government has gradually strengthened the ad-ministrative accountability system, with the chief executive as the core, to fight against unjust law enforcement, administrative acts in violation of the law, disobeying orders and defying prohibitions, administrative inaction and chaos, and earnestly fix responsibility for cases that seriously infringe on the interests of the state and the public and the citizens’ lawful rights and interests in accordance with the law and discipline. In 2009, the Interim Provisions on the Implementation of Accountability for Party and Government Leading Cadres was issued, stating explicitly that responsibility must be fixed for seven types of acts that incur heavy losses or produce baneful influences, including serious mistakes in decision making, dereliction of duty, and ineffective management and su-pervision. In 2009, some 7,036 leading cadres were held responsi-ble for such acts.

VII. Education in Clean Government and Construction of a Culture of Integrity

Education is a basic work for the fight against corruption and construction of a clean government. Over the years, China has unremittingly carried out education among state functionaries in performing official duties with integrity and strengthened the construction of a culture of integrity throughout the country to en-hance in state functionaries a sense of integrity and self-discipline and foster throughout the society the fine tradition of upholding integrity.

China makes educating Party members and state functionaries in state laws and regulations as well as Party and government dis-cipline a routine work in anti-corruption education. The Politburo of the CPC Central Committee regularly organizes group studies of the law, which has played an exemplary role in enhancing the legal awareness of the general public, especially Party members and state functionaries. It has now become a rule for Party organizations at all levels and state organs to hold group studies. The Chinese gov-ernment energetically promotes nationwide education in general knowledge of the law. Since 1986, it has successively carried out five five-year plans of such education among all citizens, espe-cially state functionaries, with over 800 million people receiving such education in different forms, thus enhancing the awareness of the general public in the rule of law and the sense of the state or-gans and state functionaries in accepting supervision during their performance of official duties.

China attaches importance to education and training in integrity among state functionaries, fortifying in them the ideological and moral defense line against corruption. The Regulations for Cadre Education and Training (Trial) and a nationwide plan for cadre education and training have been worked out, which designate education in performing official duties with integrity as a key con-tent of such education and training. Education in performance of official duties with integrity has been incorporated into the teach-ing plans of the CPC’s Party schools and the government’s schools of administration at all levels, as well as other organizations of cadre training, making it a required course for leading cadres of all levels. China has established 50 national bases for education in clean government and compiled related textbooks, and has carried out targeted on-the-job education and training in this regard. Training in performance of official duties with integrity has been held for newly elected or appointed leading cadres and newly recruited state functionaries before they take their offices, and files have been established for such training. In some provinces (autonomous regions, municipalities directly under the central government), examinations in laws and regulations related to clean government are held for those before they are selected to take leading positions, and passing such examinations has been taken as one important qualification for such positions. As a measure of precaution, talks related to clean government will be held with the would-be leading cadres before they assume office.

China emphasizes the demonstrative education with examples and admonishing education. It publicizes exemplary Party mem-bers and state functionaries and their deeds through news media, films and TV programs, and holding meetings to publicize their meritorious deeds. By compiling educational materials of typical cases, shooting films warning people against corrupt behavior, es-tablishing education bases, holding relevant exhibitions and orga-nizing corrupt officials to give speeches from their own experiences, it whets Party members, cadres and state functionar-ies’ awareness against corruption. It also uses typical cases to edu-cate people, thereby punishing one as an example to others.

China devotes major efforts to promoting the construction of a culture of integrity, advocating the moral values honoring integrity and disgracing corruption. The Opinions on Strengthening Con-struction of a Culture of Integrity has been worked out to promote the culture of integrity in offices, communities, households, schools, enterprises and rural villages. Attention has been paid to carrying on the quintessence of the culture of integrity in the fine traditions of Chinese nation and presenting the rich connotations of the in-tegrity culture by means of literature and art, films and TV series, calligraphy and painting exhibitions, and ads for public good. A number of outstanding works advocating the culture of integrity have been produced and they give expression to inspiring themes, the spirit of the times and humane care. Rich in content and varied in form, these cultural activities are popular among the people, and they sing praises of the Chinese nation’s fine tradition of upholding integrity, showcase fruitful achievements in the construction of integrity culture, and further promote the development of such construction.

China attaches importance to education among youngsters in integrity by offering such courses in many primary and secondary schools, and universities, supplying relevant teaching materials, and specialized teachers sometimes. Meanwhile, full use is made of such extracurricular activities as summer and winter camps for primary and high school students, and social practices and campus cultural construction for university students to carry out education in integrity, so as to foster among youngster the fine moral values of being incorruptible, honest and law-abiding as well as the sense of the rule of law.

VIII. International Exchanges and Cooperation in Combating Corruption

With the rapid development of economic globalization, corrup-tion has shown the tendency of becoming more organized and transnational. It is the consensus of all countries and regions in the world to strengthen international exchanges and cooperation in combating corruption, to which China attaches great importance. It proposes to enhance cooperation with other countries, regions and relevant international organizations, learn from one another and jointly combat corruption in the principle of respecting each other’s sovereignty, equality and mutual benefit, respecting differences and placing emphasis on substantial results.

China, enhancing international exchanges and cooperation with other countries, regions and relevant international organizations, has become an important force in the international anti-corruption campaign. So far, China has signed 106 judicial assistance treaties with 68 countries and regions. It has established the China-US Joint Liaison Group on Law Enforcement Cooperation and an anti-corruption panel with the United States. It has also set up a bilateral Law Enforcement and Judicial Cooperation Consultations with Canada. The CPC Central Commission for Discipline In-spection and the Ministry of Supervision of China have engaged in friendly exchanges with anti-corruption institutions in more than 80 countries and regions, and concluded cooperation agreements with relevant institutions in eight countries, including Russia. Multi-field exchanges and cooperation have been carried out with such international organizations as the United Nations, European Union, World Bank, Asian Development Bank (ADB) and Organi-zation for Economic Cooperation and Development (OECD). China has also actively participated in anti-corruption cooperation within the framework of the G20 and Asia-Pacific Economic Cooperation (APEC). The Supreme People’s Procuratorate has signed procura-torial cooperation agreements with relevant institutions in more than 80 countries and regions. The Ministry of Public Security has established 65 round-the-clock hotlines with relevant institutions of 44 countries and regions, and concluded 213 cooperation documents with interior or police departments of 59 countries and regions.

To promote international exchanges and cooperation in com-bating corruption, China acceded to the United Nations Convention against Corruption in 2005. In order to fulfill its obligations, China established an inter-department coordination group consisting of 24 government departments to organize and coordinate the im-plementation of the convention in China and the integration of Chinese laws and the convention. In 2006, the Law of the People’s Republic of China on Anti-money Laundering was promulgated to prevent and contain money laundering and relevant crimes. China has, in succession, acceded to four international anti-money laun-dering conventions, and become a member of the Financial Action Task Force on Money Laundering, the Eurasian Group on Com-bating Money Laundering and Financing of Terrorism and the Asia/Pacific Group on Money Laundering. In 2007, the National Bureau of Corruption Prevention of China was established to carry out international cooperation and technical assistance on corruption prevention.

China also actively participates in other international anti-corruption organizations, and attends and hosts international anti-corruption meetings. In 1996, China, Pakistan and other coun-tries jointly set up the Asian Ombudsman Association. In 2003, China acceded to the UN Convention against Transnational Or-ganized Crime, the first such international convention. In 2005, China joined the Anti-Corruption and Transparency Experts Task Force of the Asia-Pacific Economic Cooperation Forum and the ADB/OECD Anti-Corruption Initiative for Asia-Pacific. In 2006, the Supreme People’s Procuratorate initiated the International Association of Anti-Corruption Authorities (IAACA), the first such international organization, whose members are anti-corruption agencies of various countries and regions. In recent years, China has successfully held many international meetings, including the 7th International Anti-Corruption Conference (IACC), the 7th Asian Ombudsman Conference, the 5th Regional Anti-Corruption Conference for Asia and the Pacific, the 1st Annual Conference and General Meeting of the IAACA and the APEC Anti-Corruption and Transparency Symposium. China has also participated several times in such international anti-corruption conferences as the Global Forum on Fighting Corruption and Safeguarding Integrity, the Global Forum on Government Reform and the IACC.

Extradition and repatriation of corruption suspects is an impor-tant part of international anti-corruption cooperation. In 1984, China acceded to the International Criminal Police Organization, and en-hanced international cooperation in catching corruption suspects fleeing abroad. In 2000, China promulgated the Extradition Law of the People’s Republic of China, which laid the legal foundation for extradition cooperation between China and other countries. So far, China has concluded bilateral extradition agreements with 35 countries, and acceded to 28 multilateral conventions which con-tain provisions of judicial assistance and extradition. China con-ducts international judicial cooperation, including extradition, with more than 100 countries in accordance with the United Nations Convention against Corruption and the UN Convention against Transnational Organized Crime.

Conclusion

The CPC and the Chinese government have been making great efforts to combat corruption and build a clean government, which has yielded notable results. Practice over the past few decades has proved that the path of combating corruption and building a clean government with Chinese characteristics conforms to the funda-mental reality that China is still in the primary stage of socialism. It also conforms to the wish of people of all ethnic groups in China as well as the rule in fighting corruption and safeguarding integrity. We believe that, with the constant improvement of and progress made in China’s socialist market economy, socialist democracy, legal system, society and culture, the CPC and the Chinese gov-ernment will, relying on their own strengths and the support of the Chinese people, minimize crimes of corruption. The prospect of combating corruption and building a clean government in China is bright.

It is the common aspiration of all humanity and the common task faced by all governments and parties to combat corruption and safeguard integrity. It is also the basic policy of the Chinese gov-ernment to strengthen international anti-corruption exchanges and cooperation. China will continue to play a positive role in interna-tional and regional anti-corruption exchanges and cooperation and endeavor, together with other countries, to build a clean, just, har-monious and fine world.