The Current State of White-Collar Crime in China's Commercial Sector and Governance Strategies

Author Wang Chao
Co-Author Li Yuan
DOI https://ww

Country : China
Subject : Law / Criminology

Keywords : occupational crime; corporate crime; corporate compliance; anti-corruption; business environment.

Abstract

Statistical data based on judicial documents indicates that commercial corruption remains the most prominent type of white-collar crime in China. Corruption offences within the commercial sector exhibit distinct characteristics of “power-for-money deal”. Furthermore, “professionalization” white-collar crimes such as computer and internet fraud, financial securities fraud, and insider trading are becoming increasingly prevalent in China. Nationwide sample surveys and field experiments indicate that the prevalence of occupational offences, accounting for 90% of white-collar crimes in China, stems from deficiencies in corporate governance systems, inadequate oversight and constraints on senior management and key personnel, and the absence of preventive mechanisms addressing situations and conditions that may induce such offences. Corporate crime predominantly occurs in small and medium-sized enterprises (SMEs), rooted in the widespread operational challenges faced by such entities. Concurrently, the relative imbalance in the practical application of legal mechanisms between the public and private sectors constitutes a structural cause for the higher incidence of corporate crime among private enterprises. Empirical research indicates that, in the context of corporate management, establishing and effectively operating a compliance management system tailored to the enterprise's actual circumstances is a prerequisite for the effective prevention of white-collar crime. In the context of legal implementation, achieving substantive equal protection for private enterprises is key to enhancing the governance of white-collar crime in China. In the context of governmental governance, government-led optimisation of the business environment holds fundamental significance for the governance of white-collar crime.

Download