Asset theft is top economic crime in China

By CAI XIAO (China Daily) Updated: 2014-02-28 02:17

China's economic crime rate may be lower than that of the world, but many companies in the Chinese mainland are extremely concerned about bribery, corruption and procurement fraud, according to a PwC survey released on Thursday.

The analysis is based on responses from more than 5,000 executives from 95 countries and regions, including 85 in the Chinese mainland and 116 in Hong Kong and Macao, and given during the past 24 months.

The report said 27 percent of mainland respondents and 16 percent from Hong Kong and Macao said they had been victims of economic crime, compared with 37 percent globally and 32 percent in Asia Pacific.

But a reduced capability among mainland-based organizations to detect economic crime could partly explain the results.

Asset misappropriation in China was the largest type of fraud reported, which was in line with global results.

In the mainland, procurement fraud came second, as reported by respondents who said their organizations had suffered economic crime.

It was closely followed by bribery and corruption in the mainland, and money laundering and cybercrime in Hong Kong and Macao.

"Two recurring themes featured heavily in the Chinese mainland within the survey: concern about bribery and corruption and that of procurement fraud and kickbacks," said John Donker, a Hong Kong-based partner at PwC China who was responsible for the survey.