The Prevention and Control of Economic Crime in China: A Critical Analysis of the Law and its Administration

Economic crime and corruption has been an issue throughout Chinese history. While there may be scope for discussion as to the significance of public confidence in the integrity of a government, in practical terms the government of China has had to focus attention on maintaining confidence in its integrity as an issue for stability. Since the establishment of the Chinese Communist Party (CCP) and its assumption of power and in particular after the ‘Opening’ of the Chinese economy, abusive conduct on the part of those in positions of privilege, primarily in governmental organisations, has arguably reached an unprecedented level. In turn, this is impeding development as far as it undermines public confidence, accelerates jealousy and forges an even wider gap between rich and poor, thereby threatening the stability and security of civil societies. More importantly, these abuses undermine the reputation of the CCP and the government. China naturally consider this as of key significance in attracting foreign investment and assuming its leading role in the world economy. While there have been many attempts to curb economic crime, the traditional capabilities of the law and particularly the criminal justice system have in general terms been found to be inadequate. This thesis examines the existing law relating to fraud and corruption, as a mechanism for reducing the incidence and impact of such abuses and offers appropriate recommendations for rendering it more efficient and efficacious. The author discusses the legal history of economic crime control, followed by the various initiatives that have been undertaken at different levels of government to curb economic crime and corruption since the foundation of the People’s Republic of China. This thesis also assesses the existing legal and institutional regime for the protection of victims of economic crime. China’s stand against corruption is then placed in the context of various international initiatives, in particular those involving the United Nations. The primary objective of this thesis is to assess the law and its administration in China in the fight against economic crime and corruption and to facilitate a better understanding and control of the issues relating to the prevention of this phenomenon, in the promotion of China’s economic and political stability.