【Insider】How China’s mega infrastructure projects have become a cash machine for corruption

China’s infrastructure boom has been overwhelming, but behind the massive wave of construction lies a series of corruption and engineering quality problems that have been exposed. These issues are not limited to individual projects, but reveal systemic regulatory loopholes and dysfunctional operational mechanisms within the entire industry.

Zhang Gang, who now resides in the United States, had worked in the construction industry in mainland China for 30 years. He held positions such as planner, designer, construction engineer, site manager, and project manager. Recently, he disclosed to Epoch Times the dark secrets behind China’s massive infrastructure projects.

In 2017, Zhang Gang was involved in the construction of a 28-kilometer road in Rucheng County, Hengshui Town, Hunan Province. Although it was just a rural secondary road, officials involved in the project demanded bribes at every level from the provincial level down to the village level, resulting in embezzlement of funds that were supposed to be used for the engineering.

Reflecting on the construction process of that secondary road, Zhang recalled the dire situation at that time. From the provincial level down to the village level, almost every department demanded kickbacks, making it difficult to move the project forward without compliance.

During the road design phase, to prevent flash floods, they originally planned to install two 2-meter concrete drainage pipes. However, due to a careless attitude, only four 60-centimeter concrete pipes were installed for drainage. When a flash flood occurred one night, the drainage system couldn’t handle it, causing water to accumulate on the road over two meters deep. Though locals were familiar with the situation and knew how to navigate it, two out-of-town individuals passed through the area that night, unaware of the depth of the water. They mistakenly thought it was only a few tens of centimeters deep, attempted to drive through, encountered the flash flood, and tragically lost their lives as they couldn’t escape from the car.

After the accident, the construction unit received a gag order. The county government and relevant departments demanded to keep a low profile, even informing the village where the incident occurred not to disclose it, threatening punishment for any leaks.

Zhang revealed that the project’s budget was 120 million yuan, but the final settlement was 270 million yuan, with the majority embezzled.

This situation is not isolated. Corruption and quality issues have long plagued China’s construction industry. Zhang mentioned that despite his team’s efforts to ensure construction quality, corruption rendered those efforts futile. “Initially, we had confidence in building a high-quality road. However, once the funds were misappropriated, the remaining budget was only enough to meet the minimum construction requirements, resulting in compromised quality.”

According to Zhang, from project declaration to supervision, construction, and final acceptance, each step harbored shadows of corruption. This scenario has been confirmed in many major projects.

In May 2009, a dismantling viaduct collapsed in Zhuzhou, Hunan, causing at least 24 casualties, 27 damaged vehicles. Subsequent investigations revealed quality fraud issues within the project, where the construction party cut costs by misusing steel bars, even incorporating substandard materials. The root cause of this accident was corruption in the project, which bypassed quality control.

They needed a more qualified company to undertake the dismantling work of the viaduct, but the cost exceeded 100 million yuan. Ultimately, the project was subcontracted to a private contractor, reducing the budget to just over one million yuan. This led to the catastrophic traffic accident mentioned above, where hundreds of tons of cement collapsed from the viaduct, hitting passing cars and pedestrians, resulting in over a dozen fatalities.

In 2012, the collapse of the Yangmingtan Bridge in Harbin less than nine months after its opening caused significant transportation disruptions. The investigation confirmed once again the issues of engineering quality, with some construction parties rushing deadlines at the expense of essential safety inspections.

Most heart-wrenching were the revelations of “tofu-dreg projects” following the Wenchuan earthquake. After the earthquake, many schools collapsed, claiming numerous young lives, directly linked to the quality issues in those school projects at the time.

When it comes to corruption and quality issues in the Chinese construction industry, the root cause lies in institutional and regulatory problems. Despite governments and various regulatory bodies setting regulations, corrupt practices within the industry persist, becoming almost a “norm.” In many project cases, regulatory bodies often collude with construction companies, rendering supervision virtually ineffective.

The corruption and fraudulent practices in the Chinese construction industry have extended to other countries through the “Belt and Road” initiative. The expansion of Chinese companies’ overseas projects has become a hidden danger in the global infrastructure sector. Collusion between some local governments and Chinese companies in these projects has facilitated the spread of similar corruption phenomena in other countries.

Zhang remarked, “My colleagues and friends worked on Belt and Road projects, basically replicating China’s internal corruption, shoddy workmanship, and corruption overseas. It is not an exaggeration to say that the Belt and Road Initiative is a process of spreading corruption. In less than half a year, under the corroding influence of Chinese practices, bribery and other corrupt behaviors quickly seep in. It no longer differs much from working within China. While it claims to export projects, it is fundamentally an export of values, unfortunately, the Chinese Communist Party exports an evil set of values.”