Do Jews in Shanghai, like Madoff in US, buyoff Chinese Officials ?

“But lobbying is just a piece of Madoff’s influence in Washington. His family has contributed nearly $400,000 to political committees. And his niece, Shana Madoff Swanson, who serves as a compliance attorney at his firm, is married to a former high-ranking Securities and Exchange Commission official, Eric Swanson. …”

The details that you provide do not actually relate to the question. I assume you are interested in the level of corruption in China. Madoff or no Madoff, corruption is there in China. Let me take the excellent opportunity that you have provided to address the question, and offer you a snapshot.

1. Let us see what wikipedia has to tell about corruption in China

http://en.wikipedia.org/wiki/Corruption_in_China

Emergence of private sector inside of the state economy in post-Maoist times tempted the CPC members to misuse their power on the government posts.

Attacking corruption in the Party was one of the forces behind the Tiananmen protests of 1989.

http://en.wikipedia.org/wiki/Tiananmen_protests_of_1989

The powerful economic levers in the hands of the Party elite propelled the sons of some party officials to the most profitable posts, so as to make the CPC called the “princelings’ party” (taizidang), referring to the Imperial China patterns of corruption.

2. People involved in Corruption

Wang Shouxin
Yang Bin
Chen Liangyu
Qiu Xiaohua, the nation’s chief statistician
Zheng Xiaoyu
Lai Changxing
Lan Fu
Xiao Zuoxin
Zheyun Ye
Chen Xitong
Tian Fengshan
Zhu Junyi

3. See the Corruption Perceptions Index of the countries

http://www.transparency.org/policy_research/surveys_indices/cpi

China’s corruption level has deterioted in recent years and is one of the most corrupt nations of the world.

4. Guanxi ( 关系 )
Guānxi describes the basic dynamic in the complex nature of personalized networks of influence and social relationships, and is a central concept in Chinese society.

http://en.wikipedia.org/wiki/Guanxi

At its most basic, guānxi describes a personal connection between two people in which one is able to prevail upon another to perform a favor or service, or be prevailed upon. The two people need not to be of equal social status. Guānxi can also be used to describe a network of contacts, which an individual can call upon when something needs to be done, and through which he or she can exert influence on behalf of another.

A guānxi network violates bureaucratic norms, it leads to corruption, and guānxi can also form the basis of patron-client relations.

5. , Mao would have been less likely to bring the shame of corruption to the public eye and would have tried to keep it from getting out. They would have kept it hidden. In fact, some of the Communist party officials had sexual favors performed from young women who wished to get back to the cities from the countryside. This was done in order to see that their applications were sent.

6. The system under Mao actually set up unique kinds of corruption. The main two reasons being, that the hierarchical structure of the government allowed it to control all aspects of the country. Second, the land reforms allowed for private land to become public and it was now under the government’s control
In the reform years what made corruption more prevalent in the Chinese’s eyes, was the broader meaning of corruption; corruption was no longer as hidden from them; and the reform made it easier to perform acts of embezzlement, bribery, and so on. The fact that it was now easier to perform these acts of corruption is the most commonly referred to reason for the increase. The reform is what allowed for the growth of the corrupt, “As Deng Xiaoping commented, you cannot open the door without letting in a few flies, although in China’s case it is more like a swarm.”

6. After the reign of Mao, polices in China began to change. These were caused by the reformers and this allowed for the wide spread corruption that now runs through the country. The policy that allowed for this to happen was the decentralizing of the central government.
Document No. 5 was a disastrous attempted to encourage profit making. It was hoped to allow agencies to become smaller. What it did was allow for the police, military, and political-legal intuitions to create their own companies. This only created more corruption than before the policy had taken effect. Due to this occurrence the policy was removed. These events lead to the government defining what private and public institutions are (Zhong& Hua, 2006: 48).

7. The two tier pricing system was also used by corrupt government officials. Since China is a socialist country the state sets prices on many of the major goods at below market levels. The official would set up a side company separate from his office. The official would then purchase, let’s say grain at the state price. The grain is then sold at market price through the company that was set up on the side (Parker, 2007). The corrupt official then gets the profit from the sale.

8. China there are several industries that seem to attract corruption. One of those industries is the construction industry. China seemed to have an interesting way of committing these corrupt ways in its industry.
Among the host of “unhealthy tendencies” early in the post-Cultural Revolution period were housing irregularities – officials built private residences with public funds and materials, or abused their power in order to occupy better apartments allocated by the government. Such housing irregularities among officials are a typical prebendal form of corruption.

9. One major project that was a source of corruption in China was the Yangtze River Dam. The officials of this project embezzled millions of Yuan. An audit showed that 473 million had not been properly used towards the project (Saich, 2004: 331-332). The funds had gone to build offices, dorms, set up companies, and personal investment uses. A total of 425 million Yuan were unable to be located as well.
Some of the major corruption incidences have involved millions and even billions of Yuan that have disappeared from the government. A former mayor of Beijing took 18 million Yuan. An NPC vice-chair took 40 million Yuan and was only discovered when gambling in Macao with very large wagers. A smuggling scandal in Xiamen saw 80 billion Yuan disappear (Saich, 2004: 331). These are some of the largest corruption cases in China.

10. Bribe Payers Index: Bribe Payers Index (BPI) is a measure of how willing a nation appears to comply with demands for corrupt business practices. Higher scores reveal a lower propensity of companies from a country to offer bribes or undocumented extra payments when doing business abroad.
http://en.wikipedia.org/wiki/Bribe_Payers_Index

China figures at a pathetic low scale of 4.94. Lower the scale

Clearly Chinese companies have paid briberies to curry favor for themselves in their dealings.