紅頂中介 (hongding zhongjie): Official intermediary agency

Cleaning up official intermediary agencies was designated one of the critical moves necessary to eradicate the soil that breeds corruption at a China's cabinet meeting on Wednesday.

Some intermediary agencies with official backgrounds have been entrusted with the authority for examinations and approvals. Some of them directly affiliated to government departments rely on the relationship for survival.

Their existence results in many problems. Some with examination and approval authorities have become obstacles to streamlining administration and decentralizing power. Moreover, it tends to breed corruption. Some officials abuse their power because they collude with official intermediary agencies and take bribes from them. Some officials will work at intermediary agencies after they retire and undermine fair market competition through their former administrative influence. Some retired officials work at an official intermediary agency because they regard it as a place to continue their rent-seeking. Cleaning up official intermediary agencies is key to reform of the administrative examination and approval system, as well as the anti-corruption campaign.