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The financial compliance risks of business with China

Prof. Duncan J. McCampbell ( is an American lawyer and Associate Professor of international business and law at Metropolitan State University in Minneapolis, Minnesota, USA. He is currently on sabbatical, researching cross-cultural compliance and teaching law at a Chinese university.

This is the second article of a three-part series on managing your company’s compliance risk with China.

In the first part of this series, we discussed how China’s exports have, for decades, created steady work for US trade and product safety compliance professionals. More recently, China’s economic strength, combined with its state capitalist economic and political systems, creates political compliance risk for Western companies operating there.

Here we will look at an entirely separate and growing compliance risk for people and companies doing business with China: financial compliance risk. The risks can be grouped into two broad categories: (1) risks under domestic law arising from a company’s business dealings with Chinese individuals and corporations, and (2) risks to your company related to its operations in China.

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