Corruption in China post-1949 lies in the "organizational involution" of the ruling party, including the Communist Party of China's policies, institutions, norms, and failure to adapt to a changing environment in the post-Mao era caused by the market liberalization reforms initiated by Deng Xiaoping. Like other socialist economies that have undertaken economic reforms, such as post-Soviet Eastern Europe and Central Asia, reform-era China has experienced increasing levels of corruption.
Cadre corruption in China has been subject to significant media attention since Communist Party General Secretary Xi Jinping announced his Anti-corruption campaign following the 18th National Congress which was held in November 2012.
Transparency International's 2016 Corruption Perception Index ranks the country 79th place out of 176 countries. Means of corruption include graft, bribery, embezzlement, backdoor deals, nepotism, patronage, and statistical falsification.
Public surveys on the mainland since the late 1980s have shown that it is among the top concerns of the general public. According to Yan Sun, Associate Professor of Political Science at the City University of New York, it was corruption, rather than democracy as such, that lay at the root of the social dissatisfaction that led to the Tiananmen Square protests of 1989. Corruption undermines the legitimacy of the CPC, adds to economic inequality, undermines the environment, and fuels social unrest.
Since then, corruption has not slowed down as a result of greater economic freedom, but instead has grown more entrenched and severe in its character and scope. Business deals often involve participation in corruption. In popular perception, there are more dishonest CPC officials than honest ones, a reversal of the views held in the first decade of reform of the 1980s. China specialist Minxin Pei argues that failure to contain widespread corruption is among the most serious threats to China's future economic and political stability. Bribery, kickbacks, theft, and misspending of public funds costs at least three percent of GDP. China, though not a member of the OECD has participated as an observer in the OECD Working Group on Bribery in International Business Transactions, see OECD Anti-Bribery Convention.