ABSTRACT
This chapter introduces the guanxi-based power structure of grand corruption in China, which is governed through a hierarchical structure consisting of multiple administrative levels: central government, province, city, prefecture, county, town, and village. Each of these levels has a power hierarchy within the protective umbrella comprising officials, policemen, local gangs, and businessmen. In many scenarios, the protective umbrella extends vertically from the lower level to the upper level through syndicated corruption and guanxi-making. This chapter also introduces the fight against corruption and triads by President Xi. “Tigers” such as billionaires and government officials were brought down along with the petty criminal “flies”. If China is no longer a safe haven for triads, triads will become another form of excess capacity. When the demand for triad services slows down in China because of the series of crackdowns, the triads’ excess capacity will be transferred and utilized in OBOR.
