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The Chinese MafiaOrganized Crime, Corruption, and Extra-Legal Protection$
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Peng Wang

Print publication date: 2017

Print ISBN-13: 9780198758402

Published to Oxford Scholarship Online: March 2017

DOI: 10.1093/acprof:oso/9780198758402.001.0001

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The Red Mafia

The Red Mafia

(p.125) 5 The Red Mafia
The Chinese Mafia

Peng Wang

Oxford University Press

Chapter 5 discusses how corrupt public officials (Red Mafia) employ guanxi networks to obtain and distribute corrupt benefits. It examines the way in which public officials and businesspeople make use of guanxi networks to accumulate wealth and obtain promotion. Corrupt transactions—either within the political sector or between the public and private sectors—are co-ordinated and safeguarded by corrupt guanxi networks. By analysing the corrupt practices of selling military positions and establishing business–politics networks, this chapter looks at how guanxi networks minimize the transaction costs of corruption by securing information transmission, recruiting high-quality members, enforcing agreements, and monitoring members’ behaviour.

Keywords:   business–politics network, corruption, guanxi, hometown ties, military positions, political–business alliances, promotion, protection, Red Mafia

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