ABSTRACT

As one of the most powerful provinces, one that is highly commercialized, and one that is far from the national capital, the relationship between Guangdong and the centre has always been complicated. Under the Communist Party of China Guangdong was regarded as having long been dominated by a powerful local political machine. Of all China’s provinces, by the late 1990s, Guangdong had become the most thoroughly integrated with international economy, with an explosive growth of exports and inflow of international capital. The financial crisis in Guangdong was closely related to the bubble in real estate. The Guangdong Party and government were long aware of the rising tide of corruption in the province. The Guangdong government’s seriousness of purpose in eliminating corruption can be seen from the massive province-wide inspection of 1997/8. In October 1998 it was reported that a case of smuggling automobiles into China involved naval bases and the police together in Shantou in Guangdong, and Beihai in Guangxi.