A week ago, the Chinese government instituted a new set of anti-corruption rules, specifically aimed at local government officials.Of course, giving bribes and other forms of corruption were always illegal, but about as enforced as copying DVDs. Under the new law, officials will annually vote on each other's trustworthiness: how does one say "backstabbing" in Chinese?
Today's article is a short excerpt from a conversation with a property developer from Nanning, and a few of the problems (or opportunities, depending on your point of view) with regard to bribery and business in China. For obvious reasons, the name of the developer is not revealed. The conversation took place on July 17th, 2011.
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Frost Report: "First off, how does one go about doing business - that is, securing a contract - in China? I've heard that it's all about 'who you know,' rather than about a good reputation or good pricing."
Property Developer: "It's tough. You have to bribe officials 1-2 years in advance of a (major) project, when you put in your bid. A year later, all the officials may have changed, and you have to start all over again."
Frost Report: "So, when you give a bribe, do you just hand someone a red envelope?"
Property Developer: "That's too obvious. But, you can't just give a gift, either. It's not enough. You have to hide money inside a gift."
Frost Report: "So basically, whoever gives the biggest bribe gets the contract, is that right?"
Property Developer: "Yes. Sometimes you sign everything - all the papers are signed. Then, a few weeks later, you find out that the contract went to someone else."
Frost Report: "So after you signed the paperwork, someone came along with a bigger bribe?"
Property Developer: "Right. This business is like (American) football. You get one big play and it changes everything. It's not like basketball, when you keep getting points one at a time."
Frost Report: "What if the official won't take a bribe from you? These days, I guess they are careful. How do you win the contract then?"
Property Developer: "There are always ways. If you can't get in touch with the officials directly, sometimes you can give money to their kids. For example, at New Year, you can give a kid an envelope with 2000 yuan (equivalent to a month's salary in rural China). Holidays you have to give away a lot of money."
Frost Report: "Do you think that things will change as a result of the new laws?"
Property Developer: "No."
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See also:
China issues anti-corruption regulation targeted at village officials
More Chinese cities see property prices fall as result of cooling policies
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“Few men have virtue to withstand the highest bidder.”
George Washington
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