According to a 2007 report by the Economist Intelligence Unit, China is and will continue to be the top emerging market for foreign direct investment (FDI) through 2011. The U.S.-China Business Council’s “Forecast 2008: Investment in China” reports that FDI in China grew by 13.8 percent in 2007 over 2006, with the United States contributing $2.6 billion, China’s sixth largest source of FDI. 

Although China may offer your business considerable opportunities, including as a market for selling products and as a site for outsourcing, it also presents significant risks. One such risk, off the radar of most companies for more than two decades, is that of violating the Foreign Corrupt Practices Act (FCPA) of 1977.

In "Avoiding Risk While Doing Business in China," Senior Manager Kevin Corbett and Principal Ed Rial, both of the Forensic & Dispute Services practice of Deloitte Financial Adviosry Services LLP, discuss how the intensifying anticorruption landscape in the United States and in China affects those companies looking to do business abroad. They  also explore why China, in particular, poses a significant risk from a combination of cultural, historical, economic and social factors, and what a company can do to help mitigate the risk of violating the FCPA.

Related Content:
White Paper: Investing in China: Mitigating Corruption Risk in a Land of Opportunity
Video: The FCPA and China