Foreign firms in China strengthen compliance as investigations continue
Foreign firms doing business in China beefed up their compliance of Chinese laws as authorities continued their antitrust investigations. According to Reuters, foreign companies were hiring lawyers to ensure that their operations were in consonance with the local regulations. The investigations conducted by authorities were now seen as a risk in doing business in the world's second largest economy.
Chinese lawyers told Reuters that clients had began asking more questions about the anti-monopoly law in the country that authorities had begun enforcing more zealously. More clients had also asked them to make antitrust audits.
Antitrust regulators had initially targeted the pharmaceuticals sector in its investigations. However, the probe had expanded to the jewelry and milk industries. Speculation is rife that the telecommunications, banks, oil and auto industries could also be the subject of investigations soon.
Foreign pharmaceutical firms were also the first to be subjected to a corruption probe. Firms in the oil and gas industries were now also included in the scrutiny.