I-6 Question: It is said that commercial bribery has become an "underlying rule" in some industries in China and "one of the distinct features of the Chinese economy." What is the reality of this problem in China? How does it view the problem? What will it do to curb mounting commercial bribery?

A: Surveys have shown that commercial bribery is increasing in China. It has severely jeopardized the order of market competition as a major hazard to China's economic and social life. To address the problem, the Chinese Government listed commercial bribery as one of the priorities in its anti-corruption campaign in 2006. A three-pronged strategy was adopted:

First, government departments, commercial organizations and public institutions were called on to take the initiative in examining and rectifying their irregularities that violate commercial ethics and market rules and are detrimental to fair competition. The Chinese Government focused on addressing commercial bribery in project construction, land-use rights transfer, property rights transactions, the purchase and sale of medical instruments and drugs, government procurement and the exploitation and marketing of resources. It instructed the regulators of 49 sectors including bank lending, securities and futures, commercial insurance, publishing and publications distribution, sports, telecommunications, power, quality inspection and environmental protection as well as over 2.6 million business organizations and public institutions to conduct self-examination and redress any malpractices.

Second, the government dealt with commercial bribery cases involving the giving and taking of bribes and other interests according to law. It was a key step taken to address the problem and an important measure of the government to garner the support of the people. Statistics show that 17,084 commercial bribery cases had been dealt with by December 2006. Of these, 3,912 cases involved public servants. In particular, a number of major cases involving government departments and their employees were handled. A number of corrupt officials were brought to justice. These moves dealt a severe blow to illegal practices such as abusing public power for private gains, collusion between officials and business people and trading power for money.

Third, the government accelerated the development of a long-acting mechanism against commercial bribery by improving the legal system and the policy framework. The aim was to address the underlying problems revealed in the business organizations and public institutions'examination of their malpractices and in the commercial bribery cases dealt with by the government. It also pushed for reforms in administrative licensing, the fiscal, tax, investment and pricing systems, public finance, the state-owned assets supervision and administration, public health, the production and sale of medical products and the monopoly sectors. At the same time, it encouraged industry associations to formulate industry regulations, conventions and standards to regulate member companies. As a result, the social credit system made rapid headway, fostering a good atmosphere for curbing commercial bribery.

Commercial bribery is a common problem for all countries to varying degrees. A market economy, especially an immature one, is particularly prone to this problem. At present, China is undergoing institutional transition and structural adjustment with rapid social change. Although the market economy has been established in China, it has yet to be improved. Consequently, the conditions that give rise to commercial bribery are not to be done away with any time soon. While admitting that it will take a long time to resolve this problem, it should be noted that commercial bribery has been incorporated into China's broader anti-corruption campaign. By addressing both its root causes and symptoms in a comprehensive manner, the soil that breeds commercial bribery will gradually be eliminated, and its momentum will also be effectively reined in.

(China.org.cn)