1. Rooting Out Corruption In A Communist State
By Jack Coopersmith

2. Anti-Corruption History
Mao Zedong during the Cultural Revolution and Great Leap Forward, intent was to suppress political enemies
Jiang Zemin’s “Three Stresses Party Rectification” brought down several officials
Hu Jintao also had periodic corruption investigations
Xi Jinping’s anti-graft campaign, beginning in 2012, is unprecedented since the Mao era. He has issued orders to “hunt both the tigers and the flies.”

3. Xi Jinping’s Anti-Graft Campaign
Effort to consolidate power and the “rule of law”
Starting to expand to Chinese citizens overseas
Hundreds arrested, including family members
The purge extending to offices and individuals previously untouchable, including top state energy, security, and military officials as well as media members

4. The Downfall of Zhou Yongkang
Formerly one of the most powerful men in China, he was a member of the Standing Committee of the Politburo
Former head of a security/spying apparatus with a larger budget than the military
At least ten of his family members have been detained
Only standing member of Standing Committee of the Politburo to be investigated for corruption

5. Consequences
More than 37,000 government officials placed under investigation
Less lavish spending (no more extravagant funerals or ceremonies)
Estimated negative impact on GDP of %, or $20 billion
Slowing of retail sales growth from 14.3% to 12.8% in the first half of 2013
Luxury sales growth from 7% to 2% in 2013
Instilled fear in current officials
Slight increase of public confidence in government officials

6. Sources