China is the country that offers an extensive variety of products at the lowest rates. Hardly any global manufacturer can come close to the manufacturing strength of China. Foreign entrepreneurs and business owners can make maximum profit by sourcing products from China.
Globally renowned multinational companies that produce labor-intensive goods, like textiles and apparel, are actively increasing their investment interest in China that may encourage more and more start-up and SME’s to look for China as a secure place to do business.
How China’s corruption control measures will enhance its credibility among the foreign companies-
Since taking the presidency, Chinese President Xi Jinping has made fighting official corruption a cornerstone of his reign. His uncompromising attitude against deep-rooted corruption in China will prove to be a boon for all the foreign companies who have business interests in China. With unusual vigor, scale and persistence, President Xi Jinping made no stone unturned to remove corruption and ill-practices from Chinese bureaucracy, politics, industry and financial sectors.
Beyond the fight against graft within China, discipline officials are also pointing to breakthroughs in the hunt for corrupt officials overseas. In China, scholar Pei emphasizes the need for clearer property rights that prevent officials from exploiting public assets for private gain. Such measures would both limit the opportunities for graft and more easily expose that which does take place.
The Chinese government has taken numerous measures to fight corruption, such as:
- Increasing transparency of government affairs
- Encouraging citizen participation in government affairs
- Strengthening the role of the deputy of the People’s Congress
- Ensuring an independent judiciary to resolve matter regarding the grievance of the foreign companies
- Holding major government officials responsible for mistakes made under their purview
- Broadening the freedoms of the media
In addition, governmental interference in the economy and the discretionary power of government officials should be reduced.
How foreign businesses could get benefited from the anti-corruption drive in China-
- The transparency that Xi wants to bring in will prove to be a turning point for foreign companies as the chances of getting duped or cheated will lessen a lot. The perpetrators will not be able to get away easily no matter how influential they are.
- “China’s anti-corruption campaign can enhance its step in realizing the Chinese dream. Corruption has demonstrated new features, new forms and new methods, as it evolved over time. Just as President Xi Jinping mentioned, the innovation of anti-corruption measures is crucial. Efforts should be taken from the system and mechanism, thus to better adapt to new circumstances.” says Roonie Lins, an expert on China issues. The country has quickly become one of the leaders in global anti-graft cooperation.
- The government has taken a number of measures to fight corruption by restricting power and cutting red tape. It will help the foreign businesses to source items and products from China, without the fear of getting inferior quality product or delay in getting them.
- Overseas companies that are involved in purchasing China items wholesale could feel more secure as they don’t have to face unfair completion from a Chinese company or another overseas company. The playing ground should be fair and square for everyone without any scope of favoritism, discrimination and nepotism.
The anti-corruption drive will make it easier and safer for the Western and US companies to break into Chinese sourcing market successfully and transform their business. The measures taken against corruption is an encouraging sign that will only lead to a conducive business sector for the Chinese people as well as for the foreign companies.