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Business Risk Control in China: Part of the List of Runaway
Police begin to arrest “runaway bosses” : Police have begun arresting entrepreneurs who have gone into hiding to avoid repaying bank and informal high-interest loans. One of our UK client’s largest suppliers --a big factory in Zhejiang, China, went bankcrupt suddenly in November, 2013 and lot of foreign clients suffered a lot, indicating that more and more big companies are involved in the excessisve investment on real restate industry in China. A long list of runaway bosses from 2011 to 2014 is already listed online.

Evaluating business risks becomes especially precarious in volatile information-poor emerging markets where issue-based isolated models of risk assessment no longer seem to apply. In particular, multinational corporations seem not to use more established models for evaluating business risks in the second largest market for foreign direct investment (FDI), China. Company Verification, Factory Auditing and Business Investigation service etc are playing a more and more important role in doing business in China at present.

Containing financial risks and avoiding further stimulus measures should be the main priorities for policymakers in China, as they contemplate fresh strategies for sustained economic growth, the International Monetary Fund said on Thursday. "We consider that vulnerabilities have risen to the point where containing them should be a priority. Therefore, additional stimulus should only be deployed if growth slows significantly below this year's target," David Lipton, first deputy managing director of IMF, told a news conference in Beijing.

China has become too dependent on credit and investment, including in real estate, since the global financial crisis (in 2008), the IMF said in a statement after two weeks of talks with Chinese officials for its annual assessment of the nation's economy.

"Continuing reliance on credit-fueled growth means that risks are still rising, and although the government still has sufficient buffers to prevent a disorderly adjustment and sharp growth slowdown in the near term, more sustained efforts to reduce vulnerabilities are necessary," the statement said.

Although there are many negative news regarding doing business in China, but China is still the third largest exporter in the world – proof that there are plenty of serious and high quality suppliers. So all what you have to do is work with a qualified local expert in China and do enough Due Diligence work before payment.
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