Deceptive managerial practices in China: Strategies for foreign firms

Business fraud can be found everywhere, especially during times of economic transition. In China, the gradual dismantling of the command economy has created legal and regulatory ambiguities, making the country ripe for corruption and deception. Although China's entry into the WTO is ushering in a new set of regulations, actual changes will occur slowly. This can be particularly debilitating for foreign firms unfamiliar with local methods of monitoring and preventing unsrupulous managerial behavior. Executives, consultants, and legal experts from China have identified several types of deceptive practices for us, leading to a number of recommendations that may help prevent, detect, and remedy the problem.