"In a business environment in which personal connections and favors -- referred to as guanxi in Chinese -- predominate, many tycoons have amassed large fortunes without concern of rules and regulations. However, such a fast and loose atmosphere can cut both ways."....
...."The Economist noted that despite the number of high level cases coming to light in the country, many more remain hidden: "If they wanted to, China's authorities could probably find grounds for accusing most of the country's richest people of bending (if not breaking) the rules. But China's legal culture thrives on the principle of 'killing the chicken to scare the monkeys.' " ....
... "In a country where so many struggle to get ahead, such gaudy displays of wealth present a challenge to social stability. For that reason, the Chinese government has a political and economic incentive to scrutinize its richest citizens."...
..."Wang Xiaolu, deputy director of the National Economic Research Institute, estimated that China's gray economy is worth $1.47 trillion annually and growing fast, indicating that many of the wealthy engage in clever accounting to disguise their true net worth. Consequentially, China's income inequality has grown worse. Less than one percent of the China's population controls about 70 percent of the country's wealth, an issue threatening the very foundation of China's economic miracle."
source:
http://www.theatlantic.com/international/archive/2013/01/why-do-chinese-billionaires-keep-ending-up-in-prison/272633/
