A Chinese city’s massive appointment of officials has left the local government in hot water as netizens (online bloggers etc) and media question potential misconduct in the move.  In late January, 89 officials were appointed to new posts in various government departments – at least three of which were newly established last year – according to a statement on the website of Handan city in Hubei province (China Daily, March 5).  The central government in Beijing is trying to rout out corruption in the Provinces.  The State Council launched a revamp of ministries and committees in March 2008.  Regional Governments are allowed to follow suit under their own schedules.  However, online criticism of unnecessary appointments is growing stronger.

Takeaway

• As a CEO you have to very careful who you deal with in Government especially at a provincial level. Bribes and any other form of corruption e.g. expensive karaoke and family trips to Hong Kong, may come back to bite you. Beijing is really cracking down on corruption in the rank and file and you don’t want to be caught in the crossfire.
• The press in China is increasingly reporting on corruption cases. Many people carry ‘recording devices’ that look like pens. Be wary of photographs and never commit anything to email that could be prejudicial in court. When people ask for a meeting in their hotel room, always ‘phone a friend’ to accompany you.
• It is increasingly difficult to meet Government officials in China as they are wary of the possible ‘taint’ of corruption. Ensure that your company has someone dedicated to this function that is attuned to the current political climate.