EDITORIAL NOTE: This is how corruption works in communist countries: China, Vietnam... Relatives use their ties with communist party leaders to gain riches. There are two elements at work in any bribery case.
1. Communist country: In a country without check and balance, absolute power corrupts the most. Officials could do anything they want because they are the ones holding the power. They know that no one would prosecute them.
In Vietnam, in the VINASHIN  case, the state company that invests in the ship building business, lost $6 billion. How could a country with an annual GDP of $1,200 lose $6 billion is beyond comprehension? The Vinashin CEO was jailed and suddenly died behind bars. End of the story. No one would ever know what had happened to the money.

2. Those who are willing to bribe. In this case, Dream Works, a respectable company, was willing to offer 300 million Dollars to gain a foothold in China. Without US companies willing to throw away money illegally to bribe foreign officials in violation of the Foreign Corrupt Practices Act, corruption would not have spread like wild fire. A month ago, we have heard about another respectable company, Walmart, bribing officials in Mexico to be allowed to build new Walmart stores in Mexico. http://www.nytimes.com/2012/05/18/business/wal-mart-concedes-bribery-case-may-widen.html?src=recg

Washington ought to investigate and punish US companies which offer bribes to foreign government officials and their families.  


NY TIMES MAY 17, 2012

SHANGHAI — The Hollywood studio DreamWorks Animation recently announced a bold move to crack China’s tightly protected film industry: a $330 million deal to create a Shanghai animation studio that might one day rival the California shops that turn out hits like “Kung Fu Panda” and “The Incredibles.”

What DreamWorks did not showcase, however, was one of its newest — and most important — Chinese partners: Jiang Mianheng, the 61-year-old son of Jiang Zemin, the former Communist Party leader and the most powerful political kingmaker of China’s last two decades.
The younger Mr. Jiang’s coups have included ventures with Microsoft and Nokia and oversight of a clutch of state-backed investment vehicles that have major interests in telecommunications, semiconductors and construction projects.
That a dealmaker like Mr. Jiang would be included in an undertaking like that of DreamWorks is almost a given in today’s China. Analysts say this is how the Communist Party shares the spoils, allowing the relatives of senior leaders to cash in on one of the biggest economic booms in history.
As the scandal over Bo Xilai continues to reverberate, the authorities here are eager to paint Mr. Bo, a fallen leader who was one of 25 members of China’s ruling Politburo, as a rogue operator who abused his power, even as his family members accumulated a substantial fortune.
But evidence is mounting that the relatives of other current and former senior officials have also amassed vast wealth, often playing central roles in businesses closely entwined with the state, including those involved in finance, energy, domestic security, telecommunications and entertainment. Many of these so-called princelings also serve as middlemen to a host of global companies and wealthy tycoons eager to do business in China.