Jeremy Gordon's Blog: Risky Business In China

My talk on business risk in China at Chatham House on 23 October 2014.

The audio can be heard as a podcast here: http://jeremygordon.podbean.com/e/bus...



“Current sentiment is that business risk is as high as it has ever been.” (Risky Business in China, 2014).

Why is there so much negativity? What can businesses do about it? My view is that rapid and fundamental changes to China’s political, economic and social environment have changed the nature of opportunities and risks for international business in China. There are certainly opportunities, especially in emerging sectors, services and around consumption and outbound investment. But for many established players, it is the risks that grab the attention. Businesses need to understand and adapt to the new reality of doing business in China...(see full post on LinkedIn: https://www.linkedin.com/pulse/articl...)

“Current sentiment is that business risk is as high as it has ever been.” (Risky Business in China, 2014).

Why is there so much negativity? What can businesses do about it? My view is that rapid and fundamental changes to China’s political, economic and social environment have changed the nature of opportunities and risks for international business in China. There are certainly opportunities, especially in emerging sectors, services and around consumption and outbound investment. But for many established players, it is the risks that grab the attention. Businesses need to understand and adapt to the new reality of doing business in China.

I addressed these issues in a recent talk at Chatham House which can be heard as a podcast here, alongside the SlideShare presentation and article below:

The dragon cliché (see above) is a well worn one! Napoleon said “when the sleeping dragon awakes, it will shake the world”. The dragon is certainly awake. And some parts of the corporate world are certainly shaking. But what does the dragon represent? What do we mean when we talk about China? To western eyes the dragon is a dangerous threat. To Chinese eyes it is a positive power. We start from different perspectives and so, although we see the same thing, we can draw very different conclusions. From one side China is one of the great cultures. It is a positive power that has lifted hundreds of millions from poverty. It is also the driver of global economic growth. From another it is an aggressive, strategic threat. A massive polluter, an infringer of intellectual property, and a state controlled by a mysterious Communist Party.

China is complex. But is it welcoming? And on what terms? In the 1990s the open door policy was in full swing. China was welcoming to the manufacturing investment and industrial machinery my company was providing at the time. But it was less welcoming to the foreign banks and insurers on whose behalf we were lobbying for market access. Manufacturing businesses, while welcome, still had to export much of their production so that local competitors would be protected. This was of course long before China’s 2001 WTO accession. But even now there are challenges. China is welcoming to those it wants or needs to host, but the open door is also an exit, and anyone who breaks the rules or overstays their welcome might be pushed through it or, if they stay, made to pay – as GSK and others have found out to their cost.

Since the 1990’s China’s progress has been palpable. All that change and development presented itself at the Beijing Olympics in 2008. At that time I noted the giant “One World One Dream” slogan up on the hills beside the defences of the Great Wall. It made me think of Jim Mann’s Beijing Jeep – about the troubled beginnings of one of the first JVs in China – which talked about sharing the same bed but different dreams. Something that become a cliché on a par with Napoleon’s! On one level perhaps there is “one dream” – the same one held by Olympic athletes, Chinese and foreign firms – to win! The question is whether there is a level playing field on which to compete, and whether the rules are the same for all the competitors…

The business environment has continued to change as China has developed. My own business used to be focused on market entry strategy. From the early 2000s there was more demand for risk management services, but now I am involved in three businesses, focused on strategy and risk management, Chinese outbound investment, and the . The opportunities have clearly changed. And the risks are clearly not unique to China (which is on a par with the BRICS in risk surveys), but they are amplified by China’s scale and by the concentration of industry clusters, infrastructure and knowhow. The risk is even greater where China is a market as well as a source of production.

Strategic responses are required from international businesses – better risk management may be a start, but more fundamental changes are needed. Many of our assumptions – for example about the rule of law, contracts, audited accounts and codes of conduct – can not simply be transplanted and expected to flourish. We need to adapt our thinking as we face:

Rising costs, squeezed margins and cut corners that result in bribery scandals, toxic supply chains & product recalls.
Slowing growth, to under 7.5%, with harder-to-reach targets.
Increased competition, especially from Chinese firms, and pressure for unfair advantage.
Increased scrutiny from regulators and the media, especially in relation to foreign firms (and corrupt officials).

In response international businesses need:

Genuine engagement at multiple levels, and more understanding of the challenges faced by both sides (not just opportunities!).
A strategic review with risk as a core component.
A move beyond compliance box ticking, with balanced corporate values that align with individual rewards.
Vocal localisation for the long term and for the local good.

International businesses need to align with policy and understand that while the door may still be open, the defensive wall is still there! For many businesses the issue is now not how they should judge the Chinese dragon…but whether the dragon will judge them to be good or bad for China.

This article is adapted from a talk given at Chatham House on 23 October, 2014. It can be heard as a podcast on PodBean: http://jeremygordon.podbean.com/e/business-in-china-risks-and-opportunities-chatham-house-talk a nd viewed as a presentation on SlideShare: http://www.slideshare.net/JerryGordon68/business-in-china-risks-and-opportunities-chatham-house-talk-40680967.

The issues addressed above are drawn from my book “Risky Business in China”
http://www.amazon.com/Risky-Business-China-Diligence-Consultants/dp/1137433213

Things can change quickly in China, but the need to adapt is no longer just about maximising the market opportunity – it is also increasingly about managing risks. Recent, widely reported cases have covered Anti-Monopoly Law (AML) investigations into companies such as Qualcomm, Microsoft, Audi and Mercedes-Benz, as well as government procurement bans on foreign software, IT and consulting services. Aston Martin, KFC, McDonald’s and others have suffered supply chain failures, whilst companies such as GSK endured corporate scandals. Foreign executives have been detained and jailed, while other companies have fallen victim to more traditional accounting frauds. Caterpillar lost hundreds of millions of dollars in 2013 following its purchase of ERA Mining Machinery.

A wide range of risks clearly need to be taken into account when assessing the China business landscape, but much of the latest news has been focused on the AML investigations that have been launched into the activities of foreign companies. These investigations have prompted much discussion about the country's (perhaps political) rule of law and “level” playing field. The European Chamber of Commerce in China recently issued a strong statement saying that it has “received numerous alarming anecdotal accounts from a number of sectors that administrative intimidation tactics are being used to impel companies to accept punishments and remedies without full hearings…the European business community is also increasingly considering the question of whether foreign companies are being disproportionately targeted in the investigations”.

The AML and other challenges for foreign firms operating in China have not appeared out of the blue, and attitudes to foreign investment have been changing for some time. In 2006 Li Deshui, then head of the National Bureau of Statistics warned of the risk to Chinese brands of “malicious acquisitions” by multinationals. In 2010 Jeffrey Immelt, the CEO of General Electric, noted: “It’s getting harder for foreign companies to do business [in China]…I am not sure that in the end they want any of us to win, or any of us to be successful.” While the challenges are not new, they do need to be seen in a new context that includes slower economic growth, rising costs, a focus on the domestic market over investment and exports, indigenous innovation, greater competition, the anti-corruption campaign, development of the rule of law, and increased official and media scrutiny of foreign companies. In this environment it is much harder to achieve targets - and to hide problems that might previously have been papered over with news of more profits.

Some companies share Jeffrey Immelt’s pessimistic view. An extreme case is that of the pharmaceutical company Actavis, which announced it was pulling out in early 2014, as “China is just too risky”. That announcement came in the aftermath of the 2013 GSK bribery scandal, which resulted in charges being brought against a senior British executive, jail for two foreign investigators, a reported 61 percent drop in sales for the company - and now a fine of hundreds of millions of pounds. But for most the China market is too important to ignore, either because it hosts the industrial clusters and logistical infrastructure that feed the global supply chain, or because the potential market is so huge. A reliance on China for both supply and demand creates additional risk, and puts some in an increasingly uncomfortable position between the proverbial rock and a hard place.

As I write in my book Risky Business in China: “Fundamental political, economic and social shifts have changed the nature of the opportunities and risks…Foreign companies operating in China need to undergo a full review of risks in order to protect themselves from official scrutiny and the higher standards to which they are held. They also need to sustainably localise their business models in order to become part of the fabric of Chinese society, and valuable corporate citizens…They should take long-term, protective measures that move beyond compliance processes and box-ticking due diligence, to incorporate a balanced approach to practical, on-going risk management, and to sustainable values and business models”.

International businesses need an awareness of policy and regulatory risk, proactive (and regular) due diligence, and alignment of compliance policies with corporate targets and rewards to survive in this new environment. Companies also need new strategies, some of which have already been seen. For example, Tesco has moved away from developing its own business in China, and opted for a minority stake in a joint venture with state-owned China Resources Enterprises. 3M, has localised its business units, management and products, to “play as a local”, while Weetabix has avoided the challenge of foreign market entry by becoming Chinese when it was bought by Bright Foods.

As I conclude in the book: “Huge opportunities remain in China, but international businesses cannot afford to ignore the macro risks presented by changing regulatory and market forces. The Chinese leadership has set its course and is unlikely to change direction, so the exposure to risky business in China will only increase for those that do not take steps to align with the new reality”.

Jeremy Gordon is a director of China Business Services and China Edge, and is the author of “Risky Business in China, a Guide to Due Diligence” (Palgrave, September 2014).

Jeremy will be speaking about business risk in China at Chatham House on 23 October.

This article originally appeared in the October 2014 edition of China-Britain Business Focus, the magazine of the China-Britain Business Council and the British Chamber of Commerce in China.

The new reality of business risk in China requires a strategic approach and due diligence protection. This updated presentation (see the Slideshare link below) outlines some of the themes in “Risky Business in China”, highlighting the risks, and how they can be mitigated.

As noted in the book Risky Business in China a Guide to Due Diligence:

“There are many challenges that might keep China-focused mangers awake at night. Some of them, like the (lack of) quality of Beijing’s air, they can do little about. Others are the subject of much debate, planning and effort. It is helpful to map out the rage of concerns, and to put the key risks in the context of wider business issues…(read the full article on LinkedIn https://www.linkedin.com/pulse/articl... ).

Presentation: http://www.slideshare.net/JerryGordon...

Book: Risky Business In China. A Guide To Due Diligence

Order: http://www.amazon.co.uk/Risky-Busines...

The new reality of business risk in China requires a strategic approach and due diligence protection. This updated presentation (see the Slideshare link below) outlines some of the themes in my book, "Risky Business in China", highlighting the risks, and how they can be mitigated.

As I write in the book:

"There are many challenges that might keep China-focused mangers awake at night. Some of them, like the (lack of) quality of Beijing’s air, they can do little about. Others are the subject of much debate, planning and effort. It is helpful to map out the rage of concerns, and to put the key risks in the context of wider business issues.

China business news, and word-of-mouth reporting, suggests that market conditions continue to change quickly – as they always seem to have done. But a number of themes are consistently raised. These relate to issues such as rising costs, intellectual property rights (IPR) protection, market access, regulation and competition.

...The business challenges cover a range of economic, political, legal, operational and cultural issues. It is clear that costs are increasing across the board. The competition for qualified management and staff has also intensified, and is one of the factors making rising costs the top concern overall. The fact that this is happening in an environment of slowing growth in China and around the world only compounds the problem, and it is therefore hardly surprising to see that competition is becoming more intense from private companies as well as Chinese state-owned enterprises (SOEs). Or that perceived protectionist measures that hamper foreign firms’ ability to compete on a level playing field are worsening...

Legal issues are another common cause for concern, and range from IPR and licensing problems to the uncertainty and commercial risk presented by inconsistent enforcement... Other issues include changing bilateral relationships (which have commercial as well as political ramifications), corruption, and the longstanding debate over the value of the Chinese currency, the Renminbi (RMB).

...The picture painted may be fairly gloomy, but it is less so than elsewhere, and most remain focused on the light at the end of the tunnel. China presents more potential for growth, even if it is as a slower (but more sustainable) pace than in recent years. Companies can certainly not ignore the opportunity, either as a manufacturing base or as an emerging consumer market.

...While there are significant China challenges that some businesses would prefer to avoid altogether, the overall perception is that the potential rewards outweigh the risks. And that is likely to be true – at least for those companies that take an objective view of those risks, and proactive measures to mitigate them."

My recommendation is that companies take a much more strategic and proactive approach to risk management, and that they make better use of the due diligence tools that I highlight in "Risky Business in China".

“Risky Business In China. A Guide To Due Diligence” is by Palgrave Macmillan. For more news and discussion on risk issues in China, join the Risky Business In China LinkedIn Group, and follow the @RiskyBizChina feed on Twitter.

Jeremy Gordon will be speaking about China risk at Asia House in London on 10 September. Click here for details.

People take risks to get to the top.

Some China risks keep repeating themselves - but still manage to surprise people. I reviewed the history of a number of cases as part of the research for my forthcoming book, “Risky Business In China”, and found that there are typically red warning flags, and burnt-out wrecks on the road to the risk event, but that they are usually ignored as all eyes are fixed on the prize (deal / bonus / promotion / glory / retention of job etc.).

Big, headline cases, such as GSK’s bribery scandal and Caterpillar’s investment write-down, highlight very real (and often-repeated) China risks such as accounting fraud and bribery. In Caterpillar’s case, the company is reported to have spent US$677 million on its purchase of the Chinese firm ERA Mining Machinery (the owner of Siwei Mechanical & Electrical Equipment Manufacturing Co Ltd., “Siwei”). According to a Reuters report, Caterpillar discovered "deliberate, multi-year, coordinated accounting misconduct" at Siwei soon after the deal was completed. The Reuters investigation noted: “…it has become a case study in how a foreign company with decades of experience in China can still flounder in that market. It also shows how willing some multinationals are to accept risks they might otherwise avoid to establish themselves in the world's second-largest economy”.

But accounting misconduct was not new in China (or anywhere else). The existence of multiple sets of accounts is so open that it can hardly be called a secret. And the warning signs had been provided publicly too, not least by the actions of short sellers such as Muddy Waters who uncovered accounting frauds at overseas-listed Chinese companies.

I will look at accounting fraud and financial due diligence in a later post, but some of the due diligence lessons from these accounting cases include:

Box-ticking and a narrow focus on accounts is a recipe for disaster.
Information provided by the target should be independently verified.
Operations need to be a focus of due diligence, and site visits are essential.
Due diligence processes need to account for local reality (hidden loans, fake receipts, connected parties and more).

Many losses result from a lack of proper, localised due diligence, a lack of awareness of changing conditions and policies, a failure to maintain risk awareness beyond the start of the process, and business and reward structures that may incentivise inappropriate risk-taking. They may also result from a belief that bad things only happen to other people, and that historic horror stories are of academic interest only. But China risk is real and, like history, it often repeats itself. So it is best to be prepared, and to learn the expensive lessons for which others have already paid.

For more news and discussion on risk issues in China, join the Risky Business In China LinkedIn Group, and follow the @RiskyBizChina feed on Twitter.

“Risky Business In China. A Guide To Due Diligence” will be published by Palgrave Macmillan in September 2014.

Photo: Huashan, 1998 © Jeremy Gordon

Follow The Signs & Stick To The Path

As with the “socialist market economy”, some China risks come with “Chinese characteristics”. They range from cultural traditions to corporate structures…and the role of government and the rule of law. Adapting to these characteristics is essential for success in China. As I note in “Risky Business in China”:

“In addition to globally-present risks such as fraud, bribery and corruption, there are some features of Chinese cultural, economic and business life that can create confusion and increase risk for the uninitiated, and which require the re-focusing of the average pair of western reading glasses if they are to be seen clearly. When they are misread, or completely ignored (as is still all-too-often the case) by foreigners trying to do business (or plan or evaluate due diligence) in China, there can be negative consequences. Some of the notable Chinese characteristics which might jump off the page and give the unsuspecting business reader a nasty surprise (or a handy insight), include:

Guanxi networks
Giving and losing face
Political rule of law
Differences and disparities
Information informatization
Different dreams and mutual benefits
Legal representatives, chops and phantoms
Shadow banking
Fake receipts
Variable Interest Entities (VIEs)”

In some quarters there is a tendency to see cultural issues like guanxi and face as being a bit soft, and separate from the daily grind of hard-nosed business dealings. But a lack of understanding can be costly...

The “guanxi” relationship a foreign business person has with a potential Chinese supplier may evaporate one the contract is signed, if a new boss takes over, or when operational problems mean that something has to give. And the sort of commercial guanxi brought in with the hiring of a top official’s child may also bring in some serious compliance issues, as JP Morgan found recently with their “sons and daughters” hiring programme (which has resulted in today's news that their former China investment banking head has been arrested by Hong Kong's anti-corruption agency).

Face also deserves more than a cursory look. The giving and receiving of face can represent valuable virtual transactions. But too significant a gift could be seen as a bribe, especially in the context of Xi Jinping’s anti-corruption campaign, while lack of sufficient attention can result in loss of face, loss of a deal, or due diligence warnings that are lost in translation as an interviewee tries to save face for the boss.

Just as these cultural quirks need to be managed with sensitivity, the complex nature of the Chinese economy, the role of government, and the rule of law need to be understood. For example, the official anti-corruption campaign took a good look at the pharmaceutical industry (another area of policy focus) and GSK became the “chicken to scare the monkeys” as legal enforcement suddenly tightened.

In addition there are such things as shadow banks, fake receipts and VIEs to be accounted for (not to mention the “other” sets of accounts). All things that traditional due diligence check-lists don’t usually cover - or uncover - but which are essential to risk evaluations in China.

They may be clichéd, but “Chinese characteristics” create risk if ignored. The best defence is to be informed, and to localise the approach to risk, as well as operational, management.

In my next post I will look at some of the repetitive risks that cause problems for international businesses in China, and how they can be avoided..

For more news and discussion on risk issues in China, join the Risky Business In China LinkedIn Group, and follow the @RiskyBizChina feed on Twitter.

“Risky Business In China. A Guide To Due Diligence” will be published by Palgrave Macmillan in September 2014.

Photo: West Hill, Kunming, 2013. © Jeremy Gordon

Cost vs Risk

China has always been a challenging place to do business, but it is now also an expensive one. Costs are increasing across the board, from raw materials and minimum wages to services and office space…and compliance. The competition for qualified management and staff has also intensified, and rising costs are a top concern for international businesses operating in, and buying from, China.

Unfortunately rising costs are not balanced by falling levels of risk. The key risk themes reported by international companies in China, as reported in surveys by some of the big US and EU chambers of commerce and membership organisations include:

Higher costs
Slower growth
Increased competition
Human Resources
Protectionism
Legal issues (including IPR and corruption)

These risks are not conducive to predictability or profitability…but they are the perfect materials for making a rock and a hard place between which to sit! To add to the corporate challenge is the spectre of white-collar crime, which is another rising expense item. China Daily reported there were around 1.5 million money-related crimes investigated by Chinese police in 2013 (i.e. just the tip of the iceberg), with the major ones involving:

Fraud
Counterfeiting
Bribery
Embezzlement
Insider trading

Kroll’s 2013-2014 Global Fraud Report noted that 67 percent of respondent companies were affected by fraud in China, and that risks are increasing. Anecdotal evidence suggests that despite the official anti-corruption campaign, plenty of commercial bribery and fraud continues to take place. In the current environment businesses cannot afford either the monetary losses or the reputational and regulatory costs. The ongoing bribery scandal involving GSK is a case in point, and today’s news that charges are being brought against the company’s former country head, Mark Reilly, and two other local executives shows clearly that foreign businesses and their managers (whatever their nationality) can experience serious consequences when rules are broken.

A range of common business risks (which I will cover in a later post) require attention, but need not to be a barrier to success. Where processes are adapted and assessments made with the benefit of some local knowledge (and due diligence), relevant protections can be put in place. The challenge is then to ensure they stay in place, and continue to adapt at least as fast as the market which, contrary to some mainstream thinking, can be very innovative!

China has potential for sustainable economic growth, but also for unsustainable corporate losses that result not only from difficult trading conditions, but also from white-collar crime and regulatory fines. The budget for risk management can be managed, and may help achieve efficiencies and avoid disaster. The budget for a post-loss recovery is harder to quantify, but could be painfully high.

Senior management – in China and HQ - need to take a lead and ensure that their houses are in order, and that incentives and budgets for local management do not encourage inappropriate risk-taking or corner-cutting.

In the next post I will look at some tricky risks “with Chinese characteristics”.

For more news and discussion on risk issues in China, join the Risky Business In China LinkedIn Group, and follow the @RiskyBizChina feed on Twitter. The issues are also covered in detail in my upcoming book, “Risky Business In China. A Guide To Due Diligence”, which will be published by Palgrave Macmillan in September 2014.

Photo: West Hill, Kunming, 2013. © Jeremy Gordon

Look out. It's on a different scale.

The global financial crisis changed everything. Almost overnight strategic planning turned to risk management, and business development looked to China. China, which was relatively unscathed, became a focus for sales growth. But with higher levels of risk awareness, and with less money to spend, a lot of people were nervous about addressing the opportunity. The risks were (and are) as much about internal and corporate issues as they are about China market ones. They are also a reflection of China’s size.

The sheer scale of China, plus its increasingly high degree of both supply chain and consumer market concentration, means that the potential fallout from a risk event may be amplified compared to the same event in another, smaller and less strategic market.

Notwithstanding the “new reality” of increased pressures on foreign firms (which I covered in my last post), China is on a par with its BRICs peers in terms of global rankings for business, corruption and risk, as seen in the examples below:

Transparency International ranks China at 80 in its 2013 global Corruption Perceptions Index, with Brazil at 72, India following at 94, and Russia at 127.

The World Bank’s 2014 Ease of Doing Business rankings puts China at 96. Russia is at 92, while Brazil is at 116, and India 132.

The un-ranked elephant in the room is China’s size. While the GDP figures have attracted a lot of critical attention over the years for their suspected inaccuracy, and as the debate over China’s emergence as the world’s “largest” economy (on a PPP basis) rages on, there is no denying its scale and importance. And unlike some of its BRICs peers it is usually considered too big a prize to be optional, and too big to get wrong. As I write in “Risky Business In China”:

“…the lure of the still-developing domestic Chinese market, combined with established supply-chain clusters and a very well-developed logistics infrastructure means that, for most, China sourcing and / or sales are a necessity that is here to stay. This reality is reflected in the figures and, according to the World Trade Organization (WTO), China was the largest trader of goods in the world in 2013, with a total of US$4.16 trillion (exports of US$2.21 trillion dollars and imports of US$1.95 trillion dollars). It is also the largest trading partner of 120 countries and regions and for those that are most tightly bound to China’s economy through trade and investment links, the risk increases with the degree of integration. As a result, risks in China may be even more important to manage that in other markets in which the same risks are present.”

Despite China’s importance, and as numerous headlines have shown (Caterpillar and GSK being recent examples), even big companies doing big business do get it wrong. And that is often down to a mis-match between the scale of the job and the level of senior management engagement, allocation of time and resource, and the required level of localised, strategic risk management that is invested at the outset and, critically, for the duration.

Size matters. And it makes China a special case that requires special risk management attention. So if it looks like business as usual, it looks wrong…and needs re-thinking if a corporate China crisis is to be avoided.

In my next post I will look at some of the key challenges, including rising risks and costs, that international companies face in China.

For more news and discussion on risk issues in China, join the Risky Business In China LinkedIn Group, and follow the @RiskyBizChina feed on Twitter.

Photo: Great Wall Watcher, Badaling, 2002. © Jeremy Gordon

Things can move quickly in China, and yesterday’s opportunity can become today’s risk. One of the (sometime fast) drivers of China business risk is government, with policy and regulation occasionally crashing into the best laid business plans.

In the past week alone I have tweeted about news on the regulatory risk around investment in Chinese internet firms, the establishment of a new internet security and informatization leading group, selective censorship of US television shows, a crackdown on imported media generally, delayed approval for the import of genetically-modified crops, the introduction of unlimited fines for polluters…and yet more fallout from the official anti-corruption campaign.

I have also recently finished writing a book on China risk and due diligence (“Risky Business in China”), in which key themes include the impact of government on business (not least through policy, the Party, and the political rule of law), the new reality of heightened scrutiny for foreign companies (such as GSK), and the need for constant monitoring and regular evaluation of both political and commercial risks. As I note in the book:

“Fundamental political, economic and social shifts have changed the nature of the opportunities and risks for foreign businesses in China. The country has emerged as the second largest economy in the world, and as an important driver of global growth with strategic political interests in the region and beyond. Domestically China is undergoing a significant reform programme while managing a massive, urbanising population that has social media as a tool with which to express increasingly vocal aspirations and frustrations. Entrenched local interests and state-owned enterprises are not the easiest targets for the Chinese government to deal with. But well-known foreign companies that are found, under scrutiny, to be flouting the law, abusing dominant market positions, or discriminating against Chinese consumers, may be considered fair game.”

I summarised key strategy and risk issues in a recent interview on Business World (see above), and over the next few months I will be writing in more detail about the risks international businesses face in China, and how they can be mitigated with the application of various due diligence types and tools so that the potential rewards can still be enjoyed.

For more news and discussion on risk issues in China, join the Risky Business In China LinkedIn Group, and follow the @RiskyBizChina feed on Twitter.

“Risky Business In China. A Guide To Due Diligence” will be published by Palgrave Macmillan in September 2014.