ABSTRACT
One of the most common sources of corruption in present-day China comes from rent seeking. It originates from government–business collusion seeking to capture the extra profits arising from market regulations. Extra profits, or more specifically economic rents, are generated when production licenses are rationed, when prices are fixed, when trade quotas are imposed by the government, and so on. Typically, bribes are offered by businesses to government officials in exchange for the creation and allocation of rents.
