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Tigers and Flies: China Anti-Corruption Campaign

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Page 5 © EcoVadis 2015 White Paper which are traditionally dominated by state-owned enterprises. Wang Qishan, chief of CCDI, announced that this year's first round of disciplinary inspection would focus on twenty-six centrally-run/state-owned businesses. It is clear that the campaign is going to be a signature of Xi's tenure as China's top leader, reining in corruptive practices by discouraging extravagant official spending and power abuse. Opinions are mixed about the anti-corruption campaign. Supporters say that Xi is addressing a prime concern of Chinese society. Corruption has spread and grown everywhere in China's bureaucratic system, which has resulted in a bad image for the party, and a government with low credibility. The unprecedented campaign sends out a signal of the government's determination to solve the problem and rebuild the party's image and public faith. This effort, however, is also subject to some significant skepticism. The unprecedented scope, depth and intensity of the campaign have raised cynical questions that Xi is using the anti-graft campaign as a camouflage, which Xi uses to remove political opponents, and consolidate power. Regardless of the motivations, without systemic change, including greater transparency and a free press, unscrupulous behavior will re-emerge, as the New York Times argued in this article. The results of the anti-corruption campaign will continue to be closely scrutinized as we move ahead through 2015. But there is no question that the way of "getting business done in China" has drastically changed from what people used to think of as the status quo. As the anti-corruption campaign's scope expands horizontally and vertically, it is only a matter of time before it begins to impact those "outside the system" the same as what's happening now to those "within the bureaucratic system". Authors: Min Lin, Ying Luo, Sylvain Guyoton 17/2/2015 About EcoVadis EcoVadis is the CSR rating platform for supply chains, spanning 150 sectors and 110 countries, trusted by Global-500 enterprises like Verizon, Coca Cola Enterprises, Johnson & Johnson and 120 others. EcoVadis Scorecards make it easy to understand, track and improve suppliers' environmental, social and ethical performance, fostering transparency and innovation between trading partners. www.ecovadis.com EcoVadis, Inc. 205 East 42nd Street, 20th Floor New York, NY, 10017 Phone: +1 917 398 3333 EcoVadis S.A.S 43/47, Avenue de la Grande Armée 75016 Paris, France Phone: +33 (0)1 82 28 88 88

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