Discussion on Relationship between Guanxi and Corruption in China

Abstract

Anti-corruption movement became more violent in recent years in China, because China government notices the corruption damaged the social interests seriously. In many cases, guanxi is regarded as the corruption phenomenon, as guanxi is almost always involved in the corruption. Previous researches have analyzed guanxi’s function in corruption. However, questions have been raised that whether guanxi is the cause of corruption. Up to now, far too little attention has been paid to the question whether guanxi is the cause of corruption. This paper set out to analyze the relationship between guanxi and corruption. Results showed that guanxi is not the cause of corruption, on the contrary, it is only the tool of corruption. That is, guanxi is the passive factor in corruption. Guanxi’s corruption function can only be achieved in the special circumstances, such as the men-ruling public administration and legality, and the information asymmetry. Besides, in Confucian traditional cultural society, guanxi is the important resource of power for the individual. So guanxi is easily transformed into the corruption.