If you do international business for any length of time eventually you get into a pickle with bribes, kick-back requests, extortion, or regulatory fines all based on and originating due to domestic competition and crony capitalism. Yes, I know it’s amazing the shenanigans that go on in the US sometimes, and if you are na?ve and think it doesn’t happen here too with our own government regulators, lobbyists, politicians, and cut-throat competition, then I bet I can tell you who you voted for in the last presidential election, and whose bumper sticker you’ll be toting around this time again. Okay so, let’s talk shall we?
Even with all that goes on in the US
it’s a far better cry than doing business as an American company in a foreign nation. But, rather than me just complain about the issue, let’s turn this into a class show-and-tell case study for you, as I don’t want anyone emailing me and telling me I don’t know what I’m talking about here today.
Okay so, on June 15, 2012 their time
China Economic Review had a rather interesting article pretty much admitting the reality of the challenges that US firms have doing business in the country. The Economic Review of China indicated that the government regulators have slapped a large US retailer with another fine of over a half a million dollars and made an example of them in their media. Claiming that;
“Government agencies say the retailer sells sesame oil containing benzopyrene and illegal high-level squid with dangerous cadmium levels. The chemical is a carcinogen and is considered dangerous to human health. The accusation came as part of China’s annual food security week, when the government usually accuses foreign companies of violating regulations. “
Last year
the same US company was hit by a disproportionately fake pork labeling scandal and it was actually a Chinese vendor who made mistakes and lied to retailers, but the retailer got good and bad press. This time the story is almost the same. In this case we have an unethical food processing company and sales company that sells to major US food retailers in China, most of whom have to buy perishable goods locally, and it is better to buy most of their supplies in their countries as well.
However, the same vendor pulled fast, and instead of chasing them, they placed all responsibility and fines on retailers who trusted the Chinese companies they bought, then the government said; “Look, we have a food policy!” However, this might come as a reaction to our own FDA now with offices in China examining food on the way here, many of which were rejected for various reasons similar to the chemical and carcinogen levels discussed above. Please consider all of this and think about it.
