Sunday, August 10, 2014

China Clamps Audits

A story in the Wall Street Journal on Saturday [ http://online.wsj.com/articles/china-using-antimonopoly-law-to-pressure-foreign-businesses-1407154916?tesla=y&mg=reno64-wsj ]  tells the tale of an arrest and conviction of people who do what hundreds of business intelligence people do all around the world - collect information for due diligence decisions made by every business partner.  The Chinese are calling this stealing state secrets.  The fact that it is retroactively named a state secret seems to not bother them.

They are hiding something.  They are hiding the ownership of some of their major businesses.  They are hiding the involvement of government leadership in business dealings that make them rich.  They are hiding the ability of anyone outside of China to audit their businesses.  They are trying to stop any company that looks at ownership closely, because they don't want it to be found out.  What makes this a state secret?   Corruption.  It runs deep in government and the military sectors.  Just how deep is something they really want to prevent others from knowing.  Amazon books:  

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