Guanxi-building gifts, premium pricing for prestige brands, and closely guarded trade secrets used to be the hallmarks of a savvy international management team in China – now they are prosecutable offenses.
Glaxo SmithKline. Mercedes Benz. Yum. McDonalds. The list of Fortune 100 MNCs getting into high-profile legal trouble in China has been growing – and the
severity of problems growing more intense than ever. With the conviction of a well-known Western consultant and the widespread deployment of China’s Anti Monopoly Law, even the most die-hard Chinapologists are having a hard time arguing that international firms are getting fair treatment from Beijing. In the past the biggest problem facing Western managers and negotiators in China was the lack of consistent laws – now the problem is too much law and uneven enforcement.