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War on Graft Still Young
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The newly published results of China ongoing fight against commercial bribery can surely serve as an effective deterrent to potential bribe takers.

But to carry through the war against corruption in business-related activities, the country should move more quickly to introduce legal checks and balances that can encourage business people and public servants to behave better.

In the 10 months up to June, Chinese anti-corruption officials investigated 6,972 cases of alleged commercial bribery, involving a total of 1.96 billion yuan (US$241.7 million). Of these, 1,603 cases and 508 million yuan (US$62.6 million) involved public servants, many of whom ranked at city and county level.

The speed and scope of the ongoing anti-corruption campaign is remarkable, reflecting the Chinese authorities' determination to develop a healthy business environment and a clean government.

However, while applauding the prompt punishment of these corrupt officials, we should remind ourselves that these cases might be only the tip of the iceberg.

Bribe-taking activities have a serious consequence. They not only disturb the normal political and economic order and infringe upon public interests but also tarnish the country's image.

To root out such activity is crucial to China's ambition in becoming an innovative country.

Ultimately, Chinese enterprises will form the backbone of the country's innovative forces. To become enthusiastic innovators they require a sound business environment that encourages fair competition based on technological advancement or marketing skills rather than favors from certain people. Chinese firms' progress in innovation will decisively shape their chance to compete and win globally as the country is increasingly integrated into the world economy.

Hence, for the sound growth of Chinese companies and the national economy, the authorities need to go all-out to clean up the domestic business environment.

It will not be easy to stem all commercial bribery activities. They spread much wider than business-related areas like the approvals of building projects, land rights transactions and government procurement orders where most graft cases have been found.

Also, the idea that corruption might be necessary in ensuring low transactional costs still dies hard among some business people and State workers.

To cement and press ahead with the ongoing anti-corruption efforts, the Chinese authorities should drive home the message that the war is still in its infancy by continuing their aggressive investigations.

Besides applying pressure to bribe takers, an equally important task for the authorities is to rapidly put into place related laws and regulations that can routinely check commercial bribery.

(China Daily August 2, 2006)

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