In a recent speech at the Central Commission for Discipline Inspection (CCDI), Chinese President Xi Jinping declared corruption as the “biggest threat” to the Communist Party. This statement, while bold, reflects a deeper issue within China’s socialist framework: a system where success often depends not on merit or market-driven results but on loyalty to party leadership. Despite Xi’s decade-long anti-corruption campaign, the problem persists, raising questions about whether socialism inherently fosters corruption.

Corruption in China’s Communist Party: The Evidence

Xi’s anti-corruption campaign, launched in 2012, has targeted both high-ranking officials (“tigers”) and lower-level bureaucrats (“flies”). In 2024 alone, a record 58 senior officials, including military generals, finance leaders, and state-owned enterprise executives, were placed under investigation. Names like Admiral Miao Hua and Tang Renjian, former Minister of Agriculture, represent just a fraction of the individuals caught in the crackdown.

However, corruption extends beyond cash bribes. Officials like Fan Yifei, a former deputy governor of the People’s Bank of China, demonstrated how modern corruption has evolved. Instead of direct financial transactions, illicit wealth now flows through stocks, real estate, and gifts funneled to family members. Fan himself admitted, “A businessman might offer me money directly, and I’d refuse. But if he gives it in the form of stocks or other assets, not directly to me but to my family, that’s a whole different matter.” This shift highlights how corruption adapts to oversight, making it harder to detect and address.

The problem isn’t confined to high-level officials. Grassroots corruption, often dismissed as petty, has become a significant concern. A televised series, Fighting Corruption for the People, showcased stories like a primary school director profiting from kickbacks on student meal contracts and rural officials skimming funds from agricultural projects. Sun Laibin, a professor at Peking University’s School of Marxism, pointed out, “Compared to the ‘tigers’ far away, the public feels more strongly about the corruption around them.” These smaller-scale scandals directly impact everyday citizens, eroding public trust in local governance.

The Socialist Achilles’ Heel: Incentivizing Approval Over Merit

At its core, socialism centralizes power in government hands, where success is often determined by party approval rather than measurable economic or operational outcomes. In such a system, bureaucrats are incentivized to gain favor with party superiors rather than perform efficiently or innovate. This dynamic creates fertile ground for corruption, as relationships and alliances overshadow accountability and transparency.

For instance, military promotions in the People’s Liberation Army (PLA) often hinge more on political loyalty than on strategic expertise. The purges of two consecutive defense ministers, Li Shangfu and Wei Fenghe, for “serious violations of discipline,” suggest that corruption is deeply embedded in the military hierarchy. Similarly, leaders of state-owned enterprises might prioritize projects that align with party narratives rather than profitable or sustainable initiatives. The lack of genuine competition or independent oversight leaves little room for self-correction.

Professor Andrew Wedeman from Georgia State University highlighted the systemic nature of this issue, noting, “If Xi is promoting corrupt officials, this suggests the party’s internal vetting apparatus is not functioning effectively or, more seriously, is itself corrupted.” This assessment raises doubts about whether the anti-corruption campaign can ever fully succeed if the replacements for ousted officials come from the same flawed pool.

Xi’s Plan: The Knife Turns Inward

President Xi’s strategy involves what he describes as “turning the knife inward,” a metaphor for self-discipline within the Communist Party. His speeches emphasize the need for relentless oversight, strict punishments, and campaigns that target both grand corruption (the “tigers”) and grassroots graft (the “flies”). Xi has repeatedly stated, “We must always maintain our tenacity and perseverance… and resolutely fight the tough, protracted and all-out battle against corruption.”

Programs like the recent televised series Fighting Corruption for the People highlight local-level cases, serving both as cautionary tales and propaganda tools. Stories of minor officials exploiting meal programs or diverting development funds are designed to show the public that no one is above accountability.

However, the persistence of corruption despite these efforts suggests a deeper issue. Wedeman warns, “A dozen years after he set out to cleanse the senior ranks, Xi is still finding widespread corruption at the top of the party-state and the PLA.” If the system itself rewards loyalty over competence, then corruption is not just a side effect—it is an inevitable consequence.

Challenges in the Anti-Corruption Fight

Xi’s campaign faces significant challenges, including the evolving methods of corruption and the entrenched networks of patronage. The CCDI has admitted that traditional forms of corruption, such as bribes, have become more insidious. State media revealed that illicit wealth is now often transferred through family members, offshore accounts, or in forms like stocks and real estate.

Moreover, the fear of punishment can create unintended consequences. Officials may become overly cautious, avoiding innovative decisions for fear of being accused of misconduct. This “paralysis by fear” can stifle growth and progress, especially in sectors requiring bold reforms.

Can Xi Succeed Where Others Have Failed?

Xi’s crackdown has removed thousands of officials and created waves of fear among bureaucrats. Yet, experts argue that replacing corrupt leaders with equally compromised successors has become an unintended consequence of the campaign. The structural flaws in China’s socialist system—a lack of checks and balances, absence of independent judiciary power, and limited public accountability—mean corruption will always find new cracks to seep through.

Without genuine reforms that address the root causes—such as increasing transparency, promoting merit-based competition, and reducing centralized control—corruption will remain an enduring issue. Xi’s campaign, while relentless, might only scratch the surface of a much deeper structural problem.

Xi Jinping’s fight against corruption is, at its heart, a battle against the intrinsic weaknesses of a centralized, approval-based system. While his campaign has removed high-profile offenders and garnered public support, it remains reactive rather than proactive. Unless the fundamental incentives within the system are changed—rewarding transparency, competition, and accountability over blind loyalty—corruption will continue to fester.

ACZ Editor: China still cannot get its collective head around the fact that socialism is self corrupting. In addition to a longstanding culture where bribery is normal, socialism supports and encourages corruption systemically.