CFR Presents

Asia Unbound

CFR experts give their take on the cutting-edge issues emerging in Asia today.

Posts by Category

Showing posts for "Corruption"

Allegations Against Prime Minister Najib Raise the Political Temperature in Malaysia

by Joshua Kurlantzick
Workmen are pictured on site at the 1 Malaysia Development Berhad (1MDB) flagship Tun Razak Exchange development in Kuala Lumpur, Malaysia, March 1, 2015. Malaysian Prime Minister Najib Razak slammed a report that said close to $700 million was wired to his personal account from banks, government agencies and companies linked to the debt-laden state fund 1MDB, claiming this was a "continuation of political sabotage." Picture taken March 1, 2015. REUTERS/Olivia Harris Workmen are pictured on site at the 1 Malaysia Development Berhad (1MDB) flagship Tun Razak Exchange development in Kuala Lumpur, Malaysia, March 1, 2015 (Olivia Harris/Reuters).

The past week has almost surely been the most challenging of Malaysian Prime Minister Najib tun Razak’s career. Late last week both the Wall Street Journal and the Sarawak Report, an investigative reporting website about Malaysia, reported that a group of companies linked to debt-ridden state fund 1Malaysian Development Bhd. (1MDB) had made deposits into Najib’s bank accounts. The WSJ further alleged that the biggest deposit into Najib’s account was worth $620 million, and that one of the other deposits was worth over $60 million. Read more »

The Anti-Corruption Drive and Risk of Policy Paralysis in China

by Yanzhong Huang
China's Politburo Standing Committee members (2nd row from bottom, L to R) Wang Qishan, Zhang Dejiang, President Xi Jinping, Premier Li Keqiang, Liu Yunshan and Yu Zhengsheng (bottom row, 2nd R) sing Chinese national anthem at the closing session of the Chinese People's Political Consultative Conference (CPPCC) at the Great Hall of the People in Beijing, March 13, 2015. (Kim Kyung-Hoon/Courtesy: Reuters) China's Politburo Standing Committee members (2nd row from bottom, L to R) Wang Qishan, Zhang Dejiang, President Xi Jinping, Premier Li Keqiang, Liu Yunshan and Yu Zhengsheng (bottom row, 2nd R) sing Chinese national anthem at the closing session of the Chinese People's Political Consultative Conference (CPPCC) at the Great Hall of the People in Beijing, March 13, 2015. (Kim Kyung-Hoon/Courtesy: Reuters)

Like it or not, President Xi Jinping’s anti-corruption campaign is extremely popular among Chinese people. According to an online survey, “combating corruption” trails “income distribution” as the top two concerns of the Chinese public. There are already reports suggesting that the campaign has helped reduce the transaction cost for ordinary people to get things done in China. Read more »

Wendy Leutert: Chinese State-Owned Companies Under Scrutiny

by Guest Blogger for Elizabeth C. Economy
China's Vice Premier Wang Qishan speaks at a dinner after the first meeting of the US-China Strategic and Economic Dialogue in Washington, July 28, 2009. REUTERS/Yuri Gripas (UNITED STATES POLITICS BUSINESS) Wang Qishan, now China's top graft buster, speaks at a dinner after the first meeting of the U.S.-China Strategic and Economic Dialogue in Washington on July 28, 2009 (Yuri Gripas /Courtesy of Reuters).

Wendy Leutert is a visiting researcher at the Brookings Institution’s John L. Thornton China Center and a PhD candidate in government at Cornell University. She worked for International Crisis Group in Beijing and holds an MA in government from Cornell and an MA in international relations from Tsinghua University.

Earlier this month, China’s anti-corruption watchdog—the Central Commission for Disciplinary Inspection—announced the next targets in President Xi Jinping’s intensifying graft campaign. Unlike 2014, when military and Communist Party organs were front and center in Xi’s line of fire, this year Beijing is taking aim at the top fifty-three state-owned companies and their Party-appointed executives. Read more »

Jokowi’s Presidency: Part 2 – The Questions

by Joshua Kurlantzick
Indonesia's presidential candidate Joko "Jokowi" Widodo gestures to supporters a day after he was named winner in the presidential election in Taman Proklamasi, Jakarta July 23, 2014. REUTERS/Darren Whiteside (INDONESIA - Tags: ELECTIONS POLITICS) Indonesia's presidential candidate Joko "Jokowi" Widodo gestures to supporters a day after he was named winner in the presidential election in Taman Proklamasi, Jakarta, on July 23, 2014 (Darren Whiteside/Courtesy Reuters).

Among his supporters, Indonesian President Joko “Jokowi” Widodo raised expectations so high, before he was actually elected, that he was bound to disappoint them. Somewhat like U.S. President Barack Obama, Jokowi seemed to fulfill different images of hope for different supporters, even if Jokowi himself did not try to actually cultivate all of these images. Read more »

Friday Asia Update: Top Five Stories for the Week of December 12, 2014

by Guest Blogger for Elizabeth C. Economy
Russian President Vladimir Putin (L) reads a joint statement as Indian Prime Minister Narendra Modi watches after their delegation level talks at Hyderabad House in New Delhi on December 11, 2014. (Adnan Abidi/Courtesy Reuters) Russian President Vladimir Putin (L) reads a joint statement as Indian Prime Minister Narendra Modi watches after their delegation level talks at Hyderabad House in New Delhi on December 11, 2014. (Adnan Abidi/Courtesy Reuters)

Ashlyn Anderson, Lauren Dickey, Darcie Draudt, William Piekos, Ariella Rotenberg, and Sharone Tobias look at the top stories in Asia today.

1. Liu Tienan sentenced to life in prison. Liu Tienan, former deputy head of the National Development and Reform Commission and former head of the National Energy Administration, was convicted of bribery and sentenced to life in prison. He was one of the first officials to be singled out by President Xi Jinping’s anticorruption campaign and is among the highest-ranking officials to be imprisoned. Liu admitted to accepting bribes valued at 35 million yuan (approximately US$5.7 million) from 2002 to 2012. Read more »

Friday Asia Update: The Top Five Stories for the Week of December 5, 2014

by Guest Blogger for Elizabeth C. Economy
China's former Politburo Standing Committee Member Zhou Yongkang attends the closing ceremony of the National People's Congress (NPC) at the Great Hall of the People in Beijing March 14, 2012. China's senior leadership has agreed to open a corruption investigation into Zhou, one of China's most powerful politicians in the past decade, stepping up its anti-graft campaign, the South China Morning Post reported on August 30, 2013. Picture taken March 14, 2012. REUTERS/Jason Lee (CHINA - Tags: POLITICS BUSINESS) China's former Politburo Standing Committee Member Zhou Yongkang attends the closing ceremony of the National People's Congress (NPC) at the Great Hall of the People in Beijing on March 14, 2012. (Jason Lee/Courtesy Reuters)

Ashlyn Anderson, Lauren Dickey, Darcie Draudt, Andrew Hill, Will Piekos, and Sharone Tobias look at the top stories in Asia today.

1. Zhou Yongkang arrested. Former head of China’s domestic security Zhou Yongkang was expelled from the Communist Party and arrested earlier today on charges including accepting bribes, helping family members and associates access government assets, disclosing state secrets, and leaking official secrets, Chinese state news service Xinhua announced. The decision was made by the Communist Party Politburo, comprised of the twenty-five most powerful officials in China, meaning that it is very likely that Zhou will be convicted. Read more »

The Anticorruption Campaign and Rising Suicides in China’s Officialdom

by Yanzhong Huang
Yang Dacai, a former provincial official, listens to a verdict at a court in Xi'an, Shaanxi province, September 5, 2013. The court jailed Yang for 14 years on Thursday for corruption after pictures of him grinning at the scene of an accident and wearing expensive watches went viral online, earning him the nickname "watch brother". A picture of the rotund Yang Dacai smiling while inspecting the scene of a bus accident in which 36 people died last year provoked outrage, and criticism grew when pictures of him wearing high-end watches were then posted on social media sites. REUTERS/Stringer (CHINA - Tags: CRIME LAW POLITICS) CHINA OUT. NO COMMERCIAL OR EDITORIAL SALES IN CHINA Yang Dacai, a former provincial official convicted of corruption, listens to his verdict at a court in Xi'an, Shaanxi province, on September 5, 2013. (Stringer/Courtesy Reuters)

On November 13, the deputy commissar of the People’s Liberation Army Navy, Vice Admiral Ma Faxing, committed suicide by leaping from a building at a naval complex in Beijing. In the same month, at least two other important officials took their lives. They were among the more than forty officials who have killed themselves since January 2014, more than double the total in all of 2011. Read more »

Three Take-Home Messages From China’s Glaxo Verdict

by Yanzhong Huang
A Chinese national flag flutters  in front of  a GlaxoSmithKline (GSK) office building in Shanghai on July 12, 2013. (Aly Song/Courtesy Reuters) A Chinese national flag flutters in front of a GlaxoSmithKline (GSK) office building in Shanghai on July 12, 2013. (Aly Song/Courtesy Reuters)

The investigation of GlaxoSmithKline’s corruption scandal ended last Friday with China fining the British drug maker nearly $500 million. The verdict revealed three important messages that multinational pharmaceuticals do not want to miss. Read more »

Friday Asia Update: Top Five Stories for the Week of September 19, 2014

by Guest Blogger for Elizabeth C. Economy
A British Airways airplane flies past a signage for pharmaceutical giant GlaxoSmithKline (GSK) in London on April 22, 2014. (Luke MacGregor/Courtesy Reuters) A British Airways airplane flies past a signage for pharmaceutical giant GlaxoSmithKline (GSK) in London on April 22, 2014. (Luke MacGregor/Courtesy Reuters)

Ashlyn Anderson, Lauren Dickey, Darcie Draudt, Andrew Hill, Will Piekos, and Sharone Tobias look at the top stories in Asia today.

1. China fines GlaxoSmithKline nearly $500 million for bribery. A Chinese court fined British pharmaceuticals firm GlaxoSmithKline (GSK) 3 billion yuan ($489 million) after the one-day, closed-door trial ended, finding the company guilty of bribery. Several officials of the company, including Mark Reilly, the former head of GSK in China, were also given suspended jail sentences. GSK said that it remained committed to operating in China despite the ruling. The company is also being investigated in the United States under the Foreign Corrupt Practices Act, and has been accused of corrupt practices on smaller scales in Poland, Syria, Iraq, Jordan, and Lebanon. By some estimates, GSK’s actions in China led to over $150 million in illegal revenues. Read more »

The Political Plight of China’s Wealthy

by Elizabeth C. Economy
Visitors look around Rolls-Royce's vintage car during the Rolls-Royce's Concours d'Elegance event for celebrating its ten years of business in China on June 28, 2013. (Kim Kyung-hoon/Courtesy Reuters) Visitors look around Rolls-Royce's vintage car during the Rolls-Royce's Concours d'Elegance event for celebrating its ten years of business in China on June 28, 2013. (Kim Kyung-hoon/Courtesy Reuters)

Technically, the news that many rich people in China have personal ties to China’s top leaders is not really news anymore. Nor is it news that many rich Chinese have placed their assets in offshore accounts or even that many rich people in China get that way through peddling influence or corruption. After all, the top fifty members of China’s National People’s Congress boast a combined wealth of $94.7 billion, making their American congressional cousins across the Pacific—whose top fifty members are worth only $1.6 billion—look positively poverty stricken. The link between politics and money in China is well-established. Read more »