Economic Development and Corruption: Beijing beyond 'Beijing'

This study attempts to reveal the political dynamics of economic reforms in China through an analysis of the case of Beijing. As anywhere else in China, Beijing experienced rapid economic growth from 1978 through to 1994. During this period, Beijing's GDP increased four times; Beijing's foreign investment amounted to $26.1 billion and the number of foreign enterprises reached 10,196; and Beijing's people increased their income by a factor of 10. In the meantime, however, as in other places in China, Beijing witnessed more rampant corruption than ever in the history of the People's Republic. The world was shocked in 1995 by the news that a senior vice mayor of Beijing committed suicide and that the party secretary—a politburo member—was first placed under house arrest and then faced criminal charges because of corruption. The attack on Beijing by the center revealed another dynamic in the particular case of Beijing, that is, a strong capital can hardly coexist with the center. The strong capital may defy the power of the center, but the center has to control the capital to command the whole country. The struggle between the center and the capital resulted in the defeat of the capital, as was the case in the Cultural Revolution.