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Bribes and Corruption issues are rampant in China

When international companies make major inroads in China, it often means meeting with strong demand for bribes. As a general rule, these companies often lack the knowledge, procedures and the tools to combat or tackle fraud and corruption in their daily transactions.

The entry of European companies into the rapidly growing Chinese market causes massive challenges of corruption. Most companies established in China, face continuous claims of bribery or experiencing similar problems among its own employees.

The problems are often magnified by a lack of experience with different business cultures and relax security procedures.

International companies come across corruption in many forms, and all corporations who have been in China for a few years, has encountered it.

China listed as No 78
Due to the centralized corporate governance structures in China, the extent of corruption is not measured statistically, however China is ranked number 78 on the organization Transparency International's list of corruption levels in 178 countries.

Corruption is both common and widespread in both public and private sectors. Traditional gifts and the transfer of money between buyers and suppliers is a common phenomenon in Chinese business culture.

European companies find it extremely difficult to manage and handle bribes and corruption in their daily life because there is insufficient focus and lack of discipline on the issue.

Corruption is still not considered a priority, but that will change when the EU directives that incorporate the UK Bribery act with its non tolerance approach towards the board of directors and management to bribes, corruption and fraud.