China Bribery: Send Lawyers, Guns And Money
Though we foreigners love to poke fun at the "official" China press, it can certainly be a good source for what Beijing is thinking and planning to do and today's issue makes clear its position on foreign company bribery. Its position: Beijing does not like it.
In an article intentionally entitled, "Multinationals also targeted in China's anti-graft move," the China Daily states that "China" "has warned multinational companies they are among its targets as it seeks to weed out corruption." The article notes that bribery cases in China rose to 4,406 in the first seven months of this year, up 8.2% from the corresponding period last year.
The article goes on to quote a warning to multinationals doing business in China, straight from the Central Committee of the Communist Party:
Li Yufu, deputy director of the leading group on anti-commercial bribery under the Central Committee of the Communist Party of China (CPC), said that China will strengthen its cooperation with other countries to expose and punish multinationals who are engaged in commercial bribery in the country, while ramping up efforts to bring to heel those Chinese nationals who fled abroad after committing similar crimes.
It then briefly mentions the recent corruption cases involving French company Carrefour and German company Siemens.
I see this as just another example of Beijing increasing its authority, of China stepping up its legal enforcement, and of China going after foreign companies first to test the water and to placate its own people.
The easy advice here is do not bribe anyone and make sure your employees do not bribe anyone either. And if you do not have such a policy in writing, in both Chinese and in the primary language of your company, I suggest you spend this holiday season getting it into place.
Oh, and for all you foreign companies in China who are convinced nothing will ever happen to you because China "needs you," I can just hear some Chinese government official out there with a bad crew-cut saying, "Make my day."
Comments
It's revealing to note that the only difference observers have managed to glean so far between the new anti-corruption bureau and the old ministry of supervision seems to be the fact that the bureau has a remit to tackle corporate corruption as well as official malfeasance.
Posted by: Duncan | October 4, 2007 1:38 AM
I am an employee of a U.S multinational company as a sales manager, what I know is that doing business in China definitely requires some "flexible approaches" to handle the personal relationships with the decision maker of your customer, as an undertable rule that you have to strive to balance between your living and ethics. Company do have a set of means to bleach itsself by some paperwork, all the risk will befalled to the individuls that are working in the frontline.
Posted by: szycm | October 4, 2007 7:16 AM