Corruption and market reform in China

Corruption in China, in various forms, has expanded along with and as a consequence of market reforms. Rent-seeking explanations are insufficient in explaining this link, which must also consider changes in the nature of the politico-administrative system, shifts in social values, and the changing structural context of opportunity demand and impunity. Rather than reducing corruption, market reforms have not only increased it but have established a new type of relationship between officials and an emerging business elite which may well perpetuate the phenomenon over the longer term.