China Faces Economic Fragmentation

Last week, officials in Gong'an county in China's Hubei province were forced to withdraw an order issued in March requiring civil servants to smoke at least 230,000 packs of locally produced cigarettes each year, or else face a fine if they failed to meet their targets. The order was withdrawn not due to intervention from the central government in Beijing, but rather due to overwhelming public outrage, demonstrating how so often in China, the farcical corruption of many local officials is held in check only by the decency and common sense of ordinary citizens.

Although this short drama was absurd and ultimately harmless, it offers a glimpse into the dysfunctional reality of many Chinese counties that are governed by mandarins beyond the reach of superiors in Beijing.