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Cleaning up China’s FDI-rich Chongqing

Chongqing by night (Photo courtesy of Wikipedia)In 2011, the western municipality of Chongqing attracted nearly $11 billion in inward foreign direct investment (FDI), better than Beijing’s FDI total for the same year.

The Economist Intelligence Unit predicts that in 2014, Chongqing will overtake Tianjin and Shanghai to become China’s fourth-largest overseas-investment draw.

This bustling municipality of 29 million people is still grappling with the legacy of its former Party chief Bo Xilai, who has come to symbolize corruption at the highest level of officialdom.

Party leaders are acting swiftly to undo the effects of the Bo scandal, whose sensational details involving murder and sex made headlines around the world.

In November 2012, authorities acted with unusual (for China) speed when a appeared online showing Lei Zhengfu, a district-level Party chief in Chongqing, with an 18-year-old mistress reportedly procured for Lei in a bribery-and-blackmail scheme.

Just a week after the release of the footage, Lei was sacked and placed under investigation.

Reportedly, the Party has restored to its good graces approximately 900 police officers who were disciplined under the Bo regime.


This post is part of an ongoing China Compliance Digest investigation into current anti-corruption compliance risk factors.

For a limited time, subscribers to China Compliance Digest will receive the China Anti-Corruption Handbook (normally $750) and FCPA Blog membership (normally $495) at no extra charge.

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