Under the control of President Xi Jinping, China has in the past five years witnessed an upsurge in the fight against corruption. This devoted struggle has translated directly to a rise in profitability margins of companies that had been weighed down by the vice. Before its decrease, corruption manifested itself in many different forms in such companies. Examples of such instances included; companies being compelled to hire ill-qualified relatives of local officials or the officials requiring hand-outs for ‘the favor’ of doing business in China.
Scaring away potential investors
This trend not only scared away potential investors from setting up shop here but also cut profits by a big margin. By corrupt officials, the Chinese government has made huge leaps in making the country investor friendly again. This has been realized thanks to the hard stance adopted by the government by tightening punishment as a result of the same. Prior to the corruption crackdown had spread its dirty fingers not only to profit-oriented businesses, but to non-profit organizations and even the military as well.
General negative impact of corruption
Although most people hold the view that corruption ails only the economic arm of the government, this notion is in fact far from the truth. In addition to crippling a country’s economy, corruption impacts negatively on also the political as well as the social structure of a country. The vice must, for this reason, be accorded the appropriate attention in dealing with it. The most effective way of dealing with corruption is in the indiscriminate application and observance of the law.
An all-out fight against the vice
Investors can now breathe easy knowing that their businesses in China are safe from these pariahs who had for a long time come in the way of them and their hard-earned money. Thanks to this dedicated crackdown, China now ranks among the top investor-friendly destinations the world over. Even the so-called ‘big fish’ in the industry have not been spared in the fight against corruption. Most recent cases on the same have seen even top raking military officials, among them a general been arraigned in court for trial.
Legal infrastructure dedicated to fighting corruption
There has been a significant reduction in corruption instances in China as a direct result of the legal frame-work in place. Unlike in the past, competent law firms can now successfully fie cases against the same even against large multinational corporations. This is a pointer on the way to go if the global battle to eliminate corruption will ever be won.