The Corruption Police Take a Medicated Break

Thursday, February 8, 2007 16:11
Posted in category Going to Market, The Big Picture
Comments Off on The Corruption Police Take a Medicated Break

for the last 12 months, the party in Beijing (and I mean the central one) has been on a campaign to root out corruption within its ranks.

Many newspapers simply viewed this as a consolidation of Hu’s power rather than a real effort to root out the cadres who had abused their positions.

Well, in another sign of Beijing’s willingness to do what it takes, the WSJ, People’s Daily, and even CBS News are reporting that the former head of the State Food and Drug Administration is now the subject of an investigation into bribery and fake pharmaceuticals.

The essentials of the case being made are that Zheng Xiaoyu took bribes from pharmaceutical companies who were looking to avoid the attention of the SFDA. Not really all that surprising given the widespread abuse by people in power (anywhere in the world).

What is surprising is that next to the former head of Shanghai’s Communist PArty, Zheng Xiaoyu is probably the next highest guy to go down… and by taking him down, Beijing has exposed just how deeply rooted the weed is. After all, to get to Zheng one would have to grease the tracks all the way to his door.


One of what I consider to be China’s pillars of stability, healthcare in China is a core component of the stability of the masses. Last summer, Beijing passed new regulations related to the distribution of medical equipment, and they are continually investigating healthcare professionals for promotion of graft within the system (i.e. patients being forced to give red envelopes of cash before they are approved for surgeries).

For those who have been following the corruption reports, then you will see that there are currently 3-4 investigations that are being publicly conducted at any one time:

  • Real Estate
  • Healthcare
  • Pension
  • Environmental

In addition though, if you are in one of the following, you can expect to receive a looksy as well:

  • Stock Market
  • Education
  • Infrastructure
  • Food and Agriculture

Boil all these down, and what these are are simply the pillars of stability in China. They are the hopes, dreams, and everyday realities is 1.3 billion people and Beijing is making it clear that there is a new sheriff in town and that he is serious.

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