Doing business in China (comes with a price tag)

The recent incidents involving multinationals in China are a reminder to other companies about the risks in doing business there.

Google Vs China is the first and the most prominent one. Google probably has a short-term lose but China will have even more to lose in the long-term. Their credibility and moral authority to deny access to information is now in question.

Rio Tinto is the next one. The punishment awarded to foreign executives is shrouded in secrecy. The issue here is – multinationals agree to follow the law in China – that is if they know what the law is.

Not withstanding the risks involved, global enterprises have no choice but to stay put. The market is too big to ignore.