• Home
  • Politics
  • Health
  • World
  • Business
  • Finance
  • Tech
  • More
    • Sports
    • Entertainment
    • Lifestyle
What's Hot

Ballard Power (BLDP) Posts Revenue Growth and Third Straight Positive Gross Margin Quarter

June 3, 2026

Democrats To Force Vote To Kill Trump’s Slush Fund And Immunity Scheme

June 3, 2026

Trump Signs Executive Order Asking for Oversight of New AI Models

June 3, 2026
Facebook Twitter Instagram
  • Contact
  • Privacy Policy
  • Terms & Conditions
Wednesday, June 3
Patriot Now NewsPatriot Now News
  • Home
  • Politics

    Democrats To Force Vote To Kill Trump’s Slush Fund And Immunity Scheme

    June 3, 2026

    Democrats seek more control over referenda in New York

    June 2, 2026

    Todd Blanche Says Trump Administration Is Ditching Weaponization Fund

    June 2, 2026

    Trump To Attend Second White House Press Corps Dinner After Assassination Attempt

    June 2, 2026

    Trump Doubles Down On Endorsing ‘Jerk’ Senator Despite Vowing To Never Back Him

    June 2, 2026
  • Health

    The Current Ebola Outbreak Is A Global Threat. A Doctor Explains

    June 3, 2026

    Targeted Drug Shrinks Tumors In Hard-To-Treat Cancer

    June 2, 2026

    She Wasn’t Due For Her Colonoscopy. A Blood Test Found Cancer Anyway

    June 2, 2026

    Trump’s Most Favored Nation Drug Pricing Has Bold Aims, But Limited Impact

    June 2, 2026

    Ebola vaccine, Medicaid work requirements: Morning Rounds

    June 2, 2026
  • World

    Ex-Scottish Leader Denies Blame After Husband Pleads Guilty

    June 3, 2026

    From Festering Infections To Untreated Cancer, ICE Detainees Across The U.S. Describe Medical Neglect

    June 3, 2026

    Ukraine Hits Russian Energy Targets, But Denies Striking Nuclear Plant

    June 2, 2026

    Singer Dua Lipa Ties Knot With Actor Callum Turner

    June 2, 2026

    Farage Vows £300m Increase for Police Taskforce Against Grooming Gangs

    June 2, 2026
  • Business

    Patagonia Begs Drag Queen Influencer To Stop Allegedly Using Their Logo

    June 3, 2026

    First Quarter GDP Revised Downward As Voters Fret Over Economy

    May 28, 2026

    Cash Drain On Americans’ Savings Accounts Nears Great Recession Levels

    May 28, 2026

    US Voters’ Confidence In Economy Nosedives To Nearly 4-Year Low

    May 22, 2026

    Elon Musk On Track To Be World’s First Trillionaire After Latest Move

    May 21, 2026
  • Finance

    Ballard Power (BLDP) Posts Revenue Growth and Third Straight Positive Gross Margin Quarter

    June 3, 2026

    Bass and Pratt will advance in L.A. mayoral race, traders say

    June 2, 2026

    Best Wells Fargo credit cards for June 2026

    June 2, 2026

    Markets in ‘greed’ mode as AI firms ready IPOs

    June 2, 2026

    Why India Cannot Let the Rupee Float

    June 2, 2026
  • Tech

    Trump Signs Executive Order Asking for Oversight of New AI Models

    June 3, 2026

    Meta’s Support Chatbot Helped Hijack High-Profile Instagram Accounts Including Obama White House

    June 2, 2026

    Luddites Weep as Scorsese and Spielberg Embrace AI

    June 2, 2026

    Anthropic Files Papers for Potential $1 Trillion AI IPO

    June 2, 2026

    Exclusive — PragerU Strikes Back After Big Tech and SPLC Attempt to Destroy Them

    June 2, 2026
  • More
    • Sports
    • Entertainment
    • Lifestyle
Patriot Now NewsPatriot Now News
Home»Finance»COVID-19 Casualties Among Foreign Companies in China 
Finance

COVID-19 Casualties Among Foreign Companies in China 

May 31, 2023No Comments7 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
In China, Lawyers Don’t Need to Keep Your Secrets
Share
Facebook Twitter LinkedIn Pinterest Email
Advertisement

COVID-19 not only wreaked havoc on individual lives, but also on companies around the world, which could not access their foreign-based subsidiaries, and had to count on local management and staff to keep them going.

Nowhere is this more evident than in China, which had the strictest and most stringent no-travel policies of any major country in the world, barring the vast majority of foreigners from traveling to China. That ban lasted more than three years.  

There are lessons to be learned from the experiences of some of the foreign companies based in China whose foreign management, directors, and owners are now returning to China only to find that their businesses are no longer run according to the principles and practices under which they were originally founded and operated.

The disruptions highlight not only the normal risks of doing business in China, but the further risks of doing business and then leaving all operations in the hands of those who may not have foreign owners’ interests in mind as major decisions are taken and implemented.

The failure of some Chinese subsidiaries of foreign companies to continue to operate according to the business culture and dictates of their foreign owners also highlights a startling new development: Chinese law is beginning to carry power and validity in the minds of ordinary Chinese, and to permeate the consciousness of Chinese business managers in ways that even 10 years ago would have been unlikely.  Chinese businesses are increasingly relying upon Chinese laws to advance their interests.  

Enjoying this article? Click here to subscribe for full access. Just $5 a month.

Introducing the law into a business controversy is in itself a relatively new concept in China. Originally it was not law but access to the closed system of power – 关系, loosely translated as relationships, but in practice meaning relationships that bring power to one’s side – that one sought to advance one’s interests.

This is not to say that either Chinese companies or citizens have much increased faith in the overall rule of law in China. Everyone knows that law can be overruled by fiat and power politics within the Chinese Communist Party. But China is displaying a greater level of dependence at an operational level on the mechanisms of law in business.

See also  Elon Musk Lands in China to Hang Out with Communist Officials

Take, for example, the case of a foreign company whose subsidiary has been successfully operating in China for the better part of 20 years. The company’s Chinese customers are nearly all state-owned enterprises (SOEs). It goes without saying that the business depends on its relationships with customers and local officials as much as it depends on the quality and price of its products.

Advertisement

Due to the inaccessibility created by COVID-19 travel bans, the company’s foreign owners relied on financial statements and accounting audits to manage from a distance for more than three years. Meanwhile, the local staff in China continued to operate the company despite frequent and onerous lockdowns.  

Toward the middle of the COVID-19 travel ban, financial discrepancies began to arise – first in small ways, then suddenly in larger, more obvious transactions. Indeed, it appeared that managers on site in China were beginning to pay themselves huge bonuses, duly reported in payroll, yet completely arbitrary and unauthorized by senior management overseas.

When questioned, the local managers in China justified the payments and took the position that the bonuses were in their purview to approve and pay. And thus began a lengthy and ever-escalating process of acrimony and accusations that has already lasted a year and is likely to continue for at least another 12 months. 

Throughout, Chinese management has used the law as its defense. They wave around the Articles of Association; they hired a lawyer (with company funds) to protect their personal interests. Chinese company law is cited, chapter and verse.  

Attempts to fire the violators have proven fruitless in practice; they still go to the office. Indeed, although the foreign owners have named a new board, members of that board are not recognized, and are barred entry to the Chinese premises. In every act of defiance, the Chinese side has referenced China’s Company Law, labor laws, and even criminal laws as the basis for its actions.

See also  'Biggest bottleneck in the AI buildup' fuels DRAM ETF to record

Indeed, as Major Ronald Alcala, Lt. Colonel John Gregory, and Lt. Colonel Shane Reeves, all professors at the United States Military Academy at West Point, pointed out in their June 28, 2018 article for Just Security, “The Communist Party of China has been leading an extraordinary effort to transform the country into a fazhi (法制) nation or ‘a country under the rule of law.’ The phrase ‘fazhi’ has become ubiquitous in China, where it is heralded in all forms of media, from simple banners and posters, to pop-up ads on the internet.”

However, they pointed out, “Despite the Party’s current encouragement of ‘rule of law’ and its celebration of the Constitution, Chinese rule of law… differs fundamentally from rule of law as internationally understood.”

Enjoying this article? Click here to subscribe for full access. Just $5 a month.

“Accordingly,” they write, “rather than promote basic principles such as the supremacy of law, legal accountability, judicial independence, and fair treatment before the law, fazhi is instead used as a rhetorical tool to legitimize the Party’s rule.”

That’s a given. It doesn’t take spending a long time in China to realize that the rule of the Communist Party is pretty much absolute, and that, with a monopoly on media, each and every message is designed to promote the party’s interests. First among those interests is to remain in power.

Most Chinese are accustomed to the party’s rhetoric, however. They know by instinct, having been taught it from the nursery on, that all roads lead to the party, and the party is their leader. Such is the incessant repetition of this message that it has all but lost its power.  

Advertisement

So, when ordinary Chinese, faced with the dilemma of how to justify actions that are clearly wrong, whether in violation of edict or of law, use the law to protect themselves, is represents a sea change in the society of modern China.  

And the extent of that change may be one that the party wasn’t expecting.  

To find an ordinary Chinese technician shaking the Articles of Association of the company for which he works as a defense against what he saw as an unwarranted and illegal infringement of his rights in a Chinese company in China is an order of magnitude beyond what one would have expected prior to the pandemic. And yet, Chinese are turning to what top leader Xi Jinping has promoted as an increasingly reliable method of asserting their rights: the law. 

See also  Biden Says The Economy Is Booming. So Why Are All These Companies Laying People Off?

The lawyer for the foreign side in the case just described says that, in his caseload, this is one of many similar instances in which the Chinese side of a company has gone adrift during COVID-19 and the foreign side is attempting to restore balance and authority over the operation. This is just one lawyer’s experience. Given the exponential rise in the number of Chinese lawyers over the last four decades – from just 200 in the early 1980s to over half a million today – it is likely that the story of dissonance between the Chinese and foreign sides of a business during COVID-19 became a common occurrence. And it is equally likely that one or both sides are seeking relief through the good offices of a lawyer and his or her ability to apply Chinese law to the case.

Thus, although the assertion that China is now a fazhi nation “under the rule of law” is highly flawed when it comes to applying that law to the Communist Party itself, it is a concept and now, more than ever, a tool that everyday Chinese citizens are turning to in order to find remedies for unsatisfactory situations. One byproduct of COVID-19 in China is clearly an increased use of Chinese law to assert – and fight for – rights for both Chinese and foreign interests in the country.  

Now that the cat is out of the bag, how long until clever lawyers begin to use fazhi principles to challenge the right of the party’s supremacy itself? COVID-19 may have helped to accelerate that process, leaving as it has the ground ripe for the use of law in China.

among Casualties China companies COVID19 Foreign
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Ballard Power (BLDP) Posts Revenue Growth and Third Straight Positive Gross Margin Quarter

June 3, 2026

Bass and Pratt will advance in L.A. mayoral race, traders say

June 2, 2026

Best Wells Fargo credit cards for June 2026

June 2, 2026

Markets in ‘greed’ mode as AI firms ready IPOs

June 2, 2026
Add A Comment

Leave A Reply Cancel Reply

Top Posts

CNN’s Kaitlan Collins Confronts Dr. Fauci Over Covid Mask Mandates

April 26, 2023

‘Extraordinary Attorney Woo’ Star Park Eun-bin Set as Busan Host

August 28, 2023

Formula 1 Returns: How to Watch the Azerbaijan Grand Prix

April 30, 2023

Nvidia Boss Jensen Huang Joins China Delegation at President Trump’s Request

May 14, 2026
Don't Miss

Ballard Power (BLDP) Posts Revenue Growth and Third Straight Positive Gross Margin Quarter

Finance June 3, 2026

Ballard Power Systems Inc. (NASDAQ:BLDP) ranks among the top hydrogen stocks to buy now. Ballard…

Democrats To Force Vote To Kill Trump’s Slush Fund And Immunity Scheme

June 3, 2026

Trump Signs Executive Order Asking for Oversight of New AI Models

June 3, 2026

Packers’ Josh Jacobs Back at Practice After Domestic Abuse Arrest: ‘Business as Usual’

June 3, 2026
About
About

This is your World, Tech, Health, Entertainment and Sports website. We provide the latest breaking news straight from the News industry.

We're social. Connect with us:

Facebook Twitter Instagram Pinterest
Categories
  • Business (4,372)
  • Entertainment (4,858)
  • Finance (3,628)
  • Health (2,185)
  • Lifestyle (1,890)
  • Politics (3,424)
  • Sports (4,371)
  • Tech (2,201)
  • Uncategorized (4)
  • World (4,696)
Our Picks

Medvedev Threatens to Send ‘Eternal Enemy’ UK Into ‘Abyss’ with Nukes

April 26, 2023

Crucial July Politburo Meeting Conveys Rare Sense of Urgency for China’s Leaders

July 31, 2024

Stocks lose steam as August slump drags on: Stock market news today

August 21, 2023
Popular Posts

Ballard Power (BLDP) Posts Revenue Growth and Third Straight Positive Gross Margin Quarter

June 3, 2026

Democrats To Force Vote To Kill Trump’s Slush Fund And Immunity Scheme

June 3, 2026

Trump Signs Executive Order Asking for Oversight of New AI Models

June 3, 2026
© 2026 Patriotnownews.com - All rights reserved.
  • Contact
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.