Bribes a misuse of business resources

Shares of Zhejiang Guangsha Co Ltd were suspended from trading Monday. According to reports, the company's founder and controlling shareholder Lou Zhongfu is rumored to have been placed under investigation for his business ties with the wife of Ling Jihua, a top official being investigated for "suspected serious disciplinary violation."

Such rumors are hardly surprising. Once a high-level official gets nabbed by China's graft watchdog, it's usually not long before their suspected associates in the business community find themselves under scrutiny as well.

In reality, some private enterprises pay substantial bribes to officials in exchange for preferential treatment or lucrative deals.

This sort of collusion has greatly distorted the normal functioning of China's commercial market. Companies that don't rely on relationships with authorities can hardly expect a fair shake at development.

The Chinese government needs to transform its role in the market and pursue policies that promote fairness. This will mean reducing opportunities for authorities to abuse their power. In the end, private enterprises need to focus firstly on improving and expanding their businesses, not pleasing officials or building relationships.