China: The Corruption Problem Child

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If your company operates in China, I have one piece of “free” advice – conduct an anti-corruption audit and do it now.

Almost one-third of the FCPA criminal cases involve bribery in China. The scenarios are very familiar: a US company enters into a joint venture with a Chinese partner, or a US company establishes (or acquires) a Chinese subsidiary.

Bribery is built into the Chinese economy. It is a remnant of the communist system in which bribery or the “black” market was a way of life. Government employees expected and demanded bribery to provide basic services and/or products. That same mentality pervades the Chinese economy. Foreign companies are attracted to China for lucrative profits. But entrance and operation in the Chinese economy requires bribery of government officials.

Foreign companies entering into China get caught up in bribery in several typical scenarios...

Please see full article below for more information.

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