With the dividing line between regulatory authority and commerce blurred, it is unclear whether an “administrative fee” paid for a business approval is funding the regulator’s pool of clerks or the sleek rank of Audis parked outside. Government agencies do not make public accounts of how revenues are earned and spent. Also ambiguous are demands from some regulators for multinationals to “make contributions to China’s development”. After discussion, such requests often end with the company paying for a training course, study tour or fact-finding mission for a delegation to some alluring overseas location, expenses paid.
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