Thursday 4 October 2007

Multinationals targeted in anti-corruption drive

Article in China Daily highlighting that the current anti-corruption investigations will also be targeting Multinational companies and quite rightly.

H/T: China Law Blog (their article can be found HERE).

Multinationals also targeted in China's anti-graft move

China, faced with a continued rise in commercial bribery cases, has warned multinational companies they are among its targets as it seeks to weed out corruption.

The warning came as the Supreme People's Court announced that the number of commercial bribery cases dealt with by courts nationwide rose to 4,406 in the first seven months, 8.2 percent more than in the corresponding period last year.

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.

Several high-profile cases allegedly involving multinationals have emerged in recent months.

Carrefour, the French retail giant, confirmed last month that eight of its Chinese managers were being held by police in a kickback probe.

German engineering powerhouse Siemens also said in August it fired 20 employees last year for violations of rules amid allegations that it paid bribes to operate in China.


So what is China Law Blogs advice to those doing business in China:

The easy advice here is do not bribe anyone and make sure your employees do not bribe anyone either.


Wise words indeed but I suspect they will fall on increasing rich but deaf ears.

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