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In January 2001, China's State Power Corporation (SPC) was accused of being caught up in a "web of corruption" following the arrest of key officials with the national power monopoly.

According to official sources, Cha Keming, a former deputy minister of power and a vice-general manager at the SPC, was arrested for taking bribes during power project tenders.

Other officials were also understood to be under investigation or suspicion.

Several western companies are reported to have been suspected of being involved in the irregular practices, among them Siemens of Germany and Alstom of France, both major supplies of power equipment and know-how to the Chinese power sector.

Siemens denied it had been involved in any bribery involving power contracts, while Alstom said it had adhered to strict guidelines outlawing unethical behaviour.