China sees rise in business crimes

More than 200 entrepreneurs were convicted of crimes in China last year, China Youth Daily reported.

A report entitled Chinese Entrepreneurs' Crimes 2011, which was conducted by Legal Daily's Faren magazine, found that China has convicted an increasing number of entrepreneurs in recent years.

The report also found that the majority of entrepreneurs were convicted of finance-related crimes such as embezzlement, bribery and fraud. In addition, the report discovered that the sums involved in these crimes have gradually increased, standing at 33.8 million yuan per person in 2011, a significant increase on 2010's figure of 9.57 million yuan per person.

The Farenreport shows that heads of state-owned enterprises, especially those in monopolized industries such as airlines and telecommunications, are more susceptible to corruption. By contrast, convicted private sector business leaders were more likely to have been found guilty of financial fraud, with some also being involved in criminal gangs.

The report attributed the rise in such crimes to an increasing culture of greed, possibly fueled by China's fast-growing economy. Measures such as the country's 4-trillion-yuan stimulus package have injected considerable liquidity into a number of SOEs, leading to a corruption-conducive environment.

For small businesses in the private sector, the implementation of tightening policies last year meant that many struggled to maintain the capital chain, fostering a climate ripe for fraud and the rise of gang-related crimes.