3. Coin of Realm in China Graft: Phony Receipts

In this article David Barboza, a corresponder for the New York Times in China, depicts the growing economy of China in a different light from that of economists. He exposes the underground aspect of this growing economic power. He outlines his personal experience on the streets of Shanghai, the numerous peddlers selling fake receipts to any passerby trying to evade taxes. Barboza emphasizes the problem and corruption in the streets of China when he states, "Some people have been executed for the crime. But demand is so strong that a surprising amount of deal-making takes place out in public." Yet he further emphasizes that this corruption is not only found at the lower end of the social scale. British corporations, among others, have fallen into this fallacy. According to Barboza, this phenomenon has even merged into the internet world, being bought and sold on e-commerce websites. With this growth in corruption and avoidance of law, it has become increasingly hard for tax-collectors and state-runned institutions to detect fake receipts or even estimate the amount of illegal money circulating throughout the country. He continues his article turning to the Chinese government's attempt to crush these operations. Barboza sees these attempts as pointless, because the government itself is interwound in these affairs. Finally, Barboza gives examples of the use the Chinese have for fake receipts, and how both large scale companies and their employees prosper from them. Lastly, Barboza goes over the challenges that would be faced by the government if attempting to control the situation in China.

In his article Barboza not only informs the reader about the corruption in China, but also explains the implications it has on the economy and on the Cinese government. He bases his statements strictly on information he has gathered from personal experience and from interviews. He takes into account both the vastness of the fake receipt operations and the casualties it has on the Chinese government. He argues very convincingly that there is a problem in China, and that this problem is partially caused by China's rising economy. Barboza uses direct sources to back-up the arguments he gives, including several interview with first-hand receipt retailers to real cases which have occurred in the past. Although the extent of these operations cannot be strictly pinpointed, the author comes up with sufficient evidence to give a general quantification for them. Furthermore, Barboza gives more than enough examples which makes his article lengthy, yet does cover enough evidence to emphasize his point. Barboza is articulate in his wording and lengthy in giving supporting evidence. Lastly, he provides a well-structured argument and enough evidence to persuade the reader of the corruption in China and to think about not so mainstream line of thought.      

http://www.nytimes.com/2013/08/04/business/global/coin-of-realm-in-china-graft-phony-receipts.html?hp