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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Published In: Administrative Agency Updates, Business Organization Updates, Criminal Law Updates, Finance & Banking Updates, International Trade Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Michael Volkov, The Volkov Law Group | Attorney Advertising

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