Chapter 04 Anti-corruption Fight
Against Dissidents to Capture Power (2)

Li Yuanchao was formerly the Central Organization Minister and was widely regarded as a confirmed member of the Standing Committee at the 18th National Congress in 2012, but was suppressed by Jiang Zemin and replaced by someone of Jiang’s choice. Li Yuanchao only continued to be a member of the Politburo because he did not belong to Xi Jinping’s faction. After the 18th Congress, he was removed from the post of Organization Minister and in 2013, he was given the title of “State Vice President”, a powerless position, until 2018 when he retired without a word on the grounds that he had reached the right age.

Liu Shaoqi’s son, Liu Yuan, is in charge of logistics in the Military Commission, and is considered the best candidate for Vice Chairman of the Military Commission, but he does not belong to Xi Jinping’s faction. Xi Jinping supported Mao’s restoration of the Cultural Revolution, Liu Yuan also went along with the Mao-Liu feud. However, Xi Jinping still does not trust him. Because Xi cannot catch any corruption evidence of Liu, he has transferred him out of the Military Commission to the Standing Committee of the National People’s Congress Finance Panel, so that he can serve as a virtual title without real power in an idle position.

Communist dictatorship and corruption have become a fixed malignant “unspoken rule, no official can take bribes, but collective bribery has become a fixed system, the top and bottom are not taken seriously. In the Hu Jintao era, the Audit Office also announced every year that it had found tens of billions of yuan in typical small treasuries of a certain ministry. The so-called small treasuries are bribes received or collective corruption and are scraped from land finance, which has not yet been distributed according to the size of the official position. In Xi Jinping’s era, the audit information obtained by the Audit Office will not be published but only be used as a tool for Xi Jinping to arrest people, to crack down on dissidents at any time.

Xi Jinping has been fighting corruption for several years, catching tigers and flies, and catching hundreds of thousands or even millions of corrupt officials. There is no exact figure but even if they are a million or several million, they account for only less than 5% of the total tens of millions of Chinese Party and political officials. According to mainland research institutions, the exposure rate of corrupt officials is 4%. That means 95% of corrupt officials are safe as long as they do not offend His Majesty and they can continue to do their jobs in peace.

The American leftist Li Dunbai, who was deceived by the Maoist Communist Party and worked for Mao, returned to the United States after 16 years of unjust imprisonment. He used his fame in the Cultural Revolution where he was the head of the foreigners’ rebellion corps and no one knew about him and so he opened a consulting service in Seattle under his name. He was able to lead the way for American businessmen to invest in China and bring them to find connections, and with his reputation, it was easy for him to get through the official circles. Foreigners are also familiar with the unspoken rules of the CCP officialdom, where bribes have to be prepared equal to 3-5% of the investment. Generally, they have to follow this unspoken rule to make it work.

Large companies have large bribery rules, small companies have small company requirements. A Hong Kong business owner has confessed that he opened a 500-worker lighting factory in Dongguan and every year on the occasion of three major holidays: the Chinese New Year, May Day, the Mid-Autumn Festival National Day, he offered money to several top government management department: police, customs, taxation, health bureau, village and town governments. Each time he sent 30,000 yuan in red packets to each of his 5 top bosses. This is true for a small factory and can be inferred for a large factory on a proportional basis.

If you want to settle the case in court, you have to pay a bribe, which is roughly 10% of the amount of the lawsuit. A large hotel in Qinghai was forced into bankruptcy because of the construction of the highway through the hotel. The hotel owed the bank a construction loan of $20 million with interest for many years. The lawsuit went to court. The court ordered him to pay $20 million. He had no money to pay. The court told him to give 10%, or 2 million yuan as a bribe and the case would be closed. The construction of the highway made him bankrupt. But paying 2 million to eliminate the case is really wrong. So he fled abroad.

If the Xi Communist Party wants to rectify, it would be very easy. That doesn’t matter if the targets are large companies or small business owners. When Jack Ma privately disagreed with the central government and was disrespectful to Xi the Great, the Xi Communist Party announced that he would be fined 18 billion yuan for having counterfeit goods in Alibaba’s online stores. He is in the country and has no choice but to admit the penalty.