衙內(nèi)經(jīng)濟 (yanei jingji): Economy of high-ranking officials' children

Several senior officials who fell due to corruption, including former security chief Zhou Yangkang and former top energy administrator Liu Tienan, share something in common: Their sons were deeply involved in their corruption cases. Media have called this phenomenon "the economy of high ranking officials' children", which refers to the abnormal economic pattern in which the sons and daughters of high-ranking officials take advantage of their parents' power and influence to do business.

Their companies always operate in local monopolistic industries that are closely connected with the local authorities. The initial funds for starting their businesses are always illegal loans from the banks or from other improper sources. Because of their parents' political power, they always have a powerful influence in the industries they operate in. And their violations of rules and regulations are not investigated and punished because of their parents' power.

Moreover, they form a well-connected network that covers up for one another and bends the law together.

Such immediate family corruption is more harmful than the ordinary trade between money and power, because it results in more serious corruption and undermines the rule of law and market order.