Question

As discussed in the textbook, which of the following is true in China when an outsider allegedly commits or actually commits fraud in the course of business dealings with Chinese firms?

Answer 1

Answer:

Outsiders have been fined heavily and refused permission to enter into more agreements with Chinese firms.

Explanation:

Chinese laws and regulations governing commercial conduct generally pair prohibitions of specific practices with prescriptions of applicable administrative penalties. Common penalties to any outsider or outsider companies that engages in fraud in china include warnings, confiscation of illegal monetary gains, heavy fines, the temporary suspension of business and ability to conduct business with any Chinese firm, or permanent revocation of the company's business license to conduct business with any Chinese firm. Some penalties are special to particular sectors or professions, such as the suspension or revocation of individual licences to trade securities to conduct business transactions with any Chinese firm.