Risky Business

In China, foreign businessmen who play hardball can wind up doing hard time. 

By Melinda Liu | Newsweek Web Exclusive
Jul 15, 2009 | Updated: 12:18  p.m. ET Jul 15, 2009

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  • Posted By: maxwill_ma @ 07/19/2009 5:49:57 AM

    i bet Melida Liu must once been a political prisoner in China,then rescued by CIA for the usage to anti-China activities.

    • Posted By: icymoon83 @ 07/20/2009 10:55:37 AM

      me too!! haha, I can't believe this woman can bear so much hatred for her own mother country. Seriously Melinda, shut up and go home to meditate a bit.

      • Posted By: alberta.xy @ 07/24/2009 5:22:44 AM

        Check out this Chinese report on her. Either she or the Chinese reporter was lying.
        http://2008.sina.com.cn/hd/other/2007-12-21/104138958.shtml

        • Posted By: RoyalRook @ 09/17/2009 7:50:13 PM

          It's Melinda, of course she is the one who is lying. If you ever visited China and read her past works, you would know that by now.

  • Posted By: red cloud @ 07/22/2009 1:13:13 AM

    Rio Tinto is not an "Anglo-American mining giant"; it is an Anglo-Australian mining giant.

  • Posted By: Aditya Mookerjee @ 07/20/2009 10:22:08 PM

    Why do people, want to do business, if they find that they face rampant corruption and unfair practices when doing business in China? In the long run, it is best not to do business in locations where there are adverse conditions. In places where there are equal playing fields for doing business, and where people do not take advantage of their position to unfairly further their own position, there businesses work for the good of all society.

    • Posted By: FreedomWatch4all @ 07/21/2009 10:46:53 AM

      Dig your head out of your anus sphincter and take a dose of reality !!!! What nation does not indulge in corruption ? Intel Inside, kickbacks for using ALL Intel components, they called it Monopolistic in Europe , just a more sophisticated form of corruption. What about US"s bailout of wall st. white collar criminals who brokered Credit Default Swap? Instead of hauling their sorry a.s.sses into jail, they get rewarded with TARP money. Corruption is just a tad more sophisticated in Western nations. Remember Jack Abramoff ? For everyone caught, dozens escapes scrutiny.

  • Posted By: lixsl20 @ 07/20/2009 1:03:25 PM

    China needs to reform its treatment of domestic and foreign supposed 'criminals'. World powers should not be a rule unto themselves, and should abid by legitimate laws and regulations. China isn't the only country guilty of this, but businesses will be scared off by both corrupt practices and the repressive tactics that the central government exhibited recently in its defense of the Han Chinese vs the Uighurs. There are some good articles on China at www.asiachroniclenews.com. Take a look.

  • Posted By: Hagbard Celine @ 07/17/2009 10:36:28 AM

    Just another reason to lock China out of our markets.

    That, of course, alongside the incredibly poor quality of their products.

    • Posted By: FreedomWatch4all @ 07/17/2009 10:48:10 AM

      Perhaps, you care to tell the Walmarts and Blue collar folks to prepare themselves for a 300% inflation rate. Perhaps, you care to revisit the Salmonella and E-Coli problems in the US domestic food supply chain which seems to happen yearly. Far more deaths have been attributed to E Coli and Salmonella than from imports from CHINA.. Keep on CHINA Bashing... your ignorance is showing through.

      • Posted By: Hagbard Celine @ 07/17/2009 12:13:56 PM

        "Perhaps, you care to tell the Walmarts and Blue collar folks to prepare themselves for a 300% inflation rate."

        Or to prepare for actually, you know, making things in this country.

        China is unnecessary, and their products would be a ripoff if they were free. Ever try to weld Chinese steel?

        • Posted By: dfng @ 07/20/2009 12:08:28 PM

          R U sure you know what you are talking about? I weld Chinese steel (Q195/Q215/Q235/Q345/SPHC/SPCC/DC01) everyday. It's great!

        • Posted By: FreedomWatch4all @ 07/17/2009 2:37:25 PM

          Perhaps you care to have a lobotomy. You can cherrypick any one item out of millions to vent your bullcrap. You are just a sad, sad sorry specimen of neardenthals.

          • Posted By: Hagbard Celine @ 07/17/2009 5:55:35 PM

            "Perhaps you care to have a lobotomy."

            Is that what your Chinese heroes would do to me for disagreeing? Or would I simply be put in jail until someone needed one of my organs, and then shot in the back of the head?

  • Posted By: dfng @ 07/20/2009 12:02:18 PM

    Sometimes I wonder how Melinda Liu gets to be a regular columnist for a magazine like Newsweek. Her biase is so obvious, and her rationale are just so full of holes. So what is she griping about. Am I supposed to feel sorry for Stern Hu? To be the highest representative for such a high profile company, negotiating on a commodity that cannot be anything else but STARTEGIC, in capital letters, at the national level, and to do these naughties, knowing full well the consequences if caught, hey, either he is an idiot, or he is a perfect a-----e, totally driven by greed. I think it's the latter. Why is he doing what he is doing - he gets paid, and quite handsomely, that's why. Did the Chinese government drum it up, I don't think so - there are supposed to be 9 other high officials from the various steel mills, being locked up also. Some of you may fool yourselves over this "innocent until proven guilty", I, for one, have my conclusion - where there's smoke, there's fire. Same as my verdict on OJ, Peterson, Spector. I shall shed as much tears for Hu as I did when Madoff was locked up. He probably felt he was Teflon-proof because he has the "media" and a foreign passport to protect him. I have worked in 3 continents, and corruption exists all over, but I cannot just use that as a talisman. If I do something improper under local laws, I have to be prepared to pay the price. No, I don't feel sorry for Hu. I hope he rots in jail.

  • Posted By: ganepal @ 07/19/2009 4:55:47 AM

    The very basic attributes of economic foundation was overlooked while entering into the rigid political culture of China. After the Deng_Xiaoping???s reform, virtually leading investors ran to China without adequate homework at home. However, it was not their fault either because they are not aware of the working mindset of the Chinese people groomed in the commune, rather viewed them as smart as the dwellers living at downtown China Town in most of the mega- city in the world. Moreover, the market size is so big that the limited number of the Pundits in modern economics hardly control over regional political leaders as desired. And they are in the front seat of the free market- bandwagon and their perception of fee varies too. As an example one can observe the uses of native language in most of the website developed for international connection and difficult in communicating through any medium are few tips of the iceberg. It is noteworthy that these regional undertakings are indulged in the manufacturing of pirated goods of the global brands. So international concern on the issues would yield a suitable business environment is would be giant economic hub of the world where all the stakeholders are well aware with the modalities of modern economic prectice.

  • Posted By: nawawimohamad @ 07/18/2009 6:59:39 AM

    The foreign executives behinds bars in China could have been framed by their Chinese rivals with the knowledge of the authorities. Just read the Chinese history. Of course the US also know about these cases but unable to exert any pressure because the US has become economically "dependent" on China. The US is actually waiting for the right time to pull the rug.

    The US will never allow China to prosper and become the next super power. The little US deputy down under has already given the signals.

  • Posted By: Hamilton Dekoff @ 07/15/2009 11:50:04 PM

    You have been spewing venom against the Chinese government for so long, yet you aren't behind bars. You should make a case against China for not being an equal opportunity oppressor, because if anyone should be locked up for crimes against the Chinese people, you should be first in line.

    • Posted By: Hagbard Celine @ 07/17/2009 10:34:59 AM

      And just how would China arrest this person?

  • Posted By: FreedomWatch4all @ 07/16/2009 11:28:18 AM

    Corruption is everywhere. China 's govt. role is expended because the govt. has a stake in most large enterprises. Most of these started out as state enterprises. Lo and behold, the US govt. has now surpassed CHINA as an even bigger stakeholder in state owned enterprises just as CHINA is privatising. US govt. now owns most of the banks, car manufacturers, insurance companies. Greed ? Just look at how the crooks on wall st were rewarded for bankrupting USA and almost the whole world. Corruption is just more sophisticated in USA. Explain how Hank Paulson managed to cash out $600 Million from Goldman Sachs shortly before the subprime mess destroyed the US economy ?

  • Posted By: Iconoblaster @ 07/15/2009 6:10:20 PM

    In the long run, China should pay a steep price for such prosecutions (if we aren't being misled by this story). If you can go to jail in China even if you DO "play by the rules", or if you FAIL to bribe the "right official", China should quickly experience difficulty finding business partners for any endeavor. Unfortunately, greed is on China's side... so long as businessmen can make the calculation that going to jail isn't likely, but huge profits are, there will always be someone willing to take the risks. I'd bet that higher ranking executives in any company can always find someone expendable to actually send into China to close a deal...and probably are already doing so.

    If you buy from a thief, you are paying him to steal. If you deal with dictators, the same logic applies... you are facilitating their oppressive acts against their own people. These are good reasons for businessmen with integrity to refuse to have anything to do with the PRC.

    • Posted By: ritagardenas @ 07/16/2009 9:47:48 AM

      You must be having too much kwok zuck by Melinda Liu, the famouse Newsweek's kwok zucker, to moan exactly like that beitch!

  • Posted By: SopheapAng @ 07/15/2009 9:03:18 PM

    Foreign businessmen who play hard balls can wind up having his kwok zuck by Melinda Liu, the famouse Newsweek's kwok zucker.

  • Posted By: FreedomWatch4all @ 07/15/2009 3:25:05 PM

    Corruption is rampant in CHINA despite severe penalties if apprehended. Indulge at your own risk. CHINA will make an example of prominently placed executives, native or overseas. Sinopec 2nd in command is facing a life sentence for corruption. Problem is if you do not play ball with govt. bureaucrats, you may never get the necessary permits or contracts. Its a catch 22.

  • Posted By: zz333 @ 07/15/2009 2:31:22 PM

    Keep kissing China's ring!

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