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

(VIDEO) Trump Gives Hilarious Take on “Freako” James Talarico’s New Pro-Meat Campaign * The Gateway Pundit * by Jordan Conradson

October 2, 2026

Ms. Rachel’s Politics Sparks Pushback from Parents: A ‘Mouthpiece’ for Hamas

October 2, 2026

Anthropic Co-Founder Daniela Amodei Kept ‘Personal Advisory Council’ of Stuffed Animals to Solve Problems

October 2, 2026
Facebook Twitter Instagram
  • Contact
  • Privacy Policy
  • Terms & Conditions
Friday, October 2
Patriot Now NewsPatriot Now News
  • Home
  • Politics

    (VIDEO) Trump Gives Hilarious Take on “Freako” James Talarico’s New Pro-Meat Campaign * The Gateway Pundit * by Jordan Conradson

    October 2, 2026

    Hispanics Are Furious At Trump So He Is Coming To Texas To Rub Their Noses In It

    October 1, 2026

    New York grapples with kinks in $1B Medicaid system

    October 1, 2026

    18-Year-Old Student Dies After Falling from Fourth-Floor Balcony at Los Angeles High School in Apparent ‘Suicide’ Following Classroom Fight * The Gateway Pundit * by Jim Hᴏft

    October 1, 2026

    After Reflecting Pool Humiliation, Rep. Jamie Raskin Gives DOJ Hot Tip On Felon Orange Vandal Desecrating DC

    October 1, 2026
  • Health

    Journal Science devotes issue to women’s health. Here’s why

    October 1, 2026

    As CDC redesigns annual health survey, it removes questions about disabilities

    October 1, 2026

    International visas, GLP-1s for kids, Medicaid: Morning Rounds

    October 1, 2026

    8 New Jersey Rehab Centers For Drug And Alcohol Recovery (2026)

    September 30, 2026

    Legal immigrants poised to lose Medicaid coverage| STAT

    September 30, 2026
  • World

    Le Pen Party Able to Form French Senate Group for First Time in History

    October 2, 2026

    Woman Told Cornell Police 2 Years Ago She Was 100% Confident She Was Raped, Report Says

    October 2, 2026

    Eiffel Tower Chief Steps Down After Female Employees Ordered ‘Be Invisible’ for Hindu Sect Visit

    October 1, 2026

    Sarah Huckabee Sanders Fires Back At Far-Right Criticism Of Her Ad

    October 1, 2026

    Pope Leo Pushes Reform on Zealously pro-Migration Bishops

    October 1, 2026
  • Business

    ATF Rule Could Cause Classic Showdown Between Mom And Pop Shops Versus Online Retailers

    July 10, 2026

    Costco Shows That You Can Build A Thriving Business With One Simple Trick (Pay Your Workers)

    July 9, 2026

    The Agency Elizabeth Warren Built Now Advances Trump’s Agenda

    July 9, 2026

    Meta To Shell Out Billions For New AI Data Center Outside US

    July 9, 2026

    How Big Banks Are Scheming To Jack Up Your Fees

    July 8, 2026
  • Finance

    The New Development Bank Quietly Delivers During India’s BRICS Year

    October 1, 2026

    Australia as an AI Middle Power

    October 1, 2026

    Can Myanmar’s New Government Revive the Stalled Dawei SEZ Project?

    October 1, 2026

    Fed’s Kashkari says inflation is ‘still too high’ even after softer-than-expected PCE data

    September 30, 2026

    Goodbye, ‘China Plus One’: The Real Change in US China Policy

    September 30, 2026
  • Tech

    Anthropic Co-Founder Daniela Amodei Kept ‘Personal Advisory Council’ of Stuffed Animals to Solve Problems

    October 2, 2026

    Gavin Newsom Orders California to Keep ‘AI’ Term After Trump’s ‘Super Intelligence’ Rebrand

    October 1, 2026

    Chinese AI Models Provided Instructions on Sarin Gas Production, Terror Attack Advice

    October 1, 2026

    Peter Schweizer Deflates the AI ‘Robot Apocalypse’ Scare

    October 1, 2026

    Leading AI Experts Fault Senate Democrats for Blocking Ratepayer Act

    October 1, 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  PREVIEW Miners grow anxious as Canada tightens foreign investment rules

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  China and Ethiopia: The Addis Light Train Stuck in Slow Motion

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  Wall Street Tests Whether the Turnaround Can Outrun Weak Demand Ahead of Q1 Results

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

The New Development Bank Quietly Delivers During India’s BRICS Year

October 1, 2026

Australia as an AI Middle Power

October 1, 2026

Can Myanmar’s New Government Revive the Stalled Dawei SEZ Project?

October 1, 2026

Fed’s Kashkari says inflation is ‘still too high’ even after softer-than-expected PCE data

September 30, 2026
Add A Comment

Leave A Reply Cancel Reply

Top Posts

Venezuelan Socialists Looting, Extorting, Losing Decayed Bodies of Earthquake Victims

July 2, 2026

Imprisoned ‘Real Housewives’ Star Jen Shah Developing Original Stage Play With Fellow Prisoners

April 7, 2023

U.S. Adds A Healthy 236,000 Jobs Despite Fed’s Rate Hikes

April 7, 2023

California Family Brutally Beaten in Hawaiian ‘Anti-White’ Attack

July 28, 2026
Don't Miss

(VIDEO) Trump Gives Hilarious Take on “Freako” James Talarico’s New Pro-Meat Campaign * The Gateway Pundit * by Jordan Conradson

Politics October 2, 2026

President Trump delivers remarks at Peterbilt Motors Company in Denton, Texas President Trump on Thursday…

Ms. Rachel’s Politics Sparks Pushback from Parents: A ‘Mouthpiece’ for Hamas

October 2, 2026

Anthropic Co-Founder Daniela Amodei Kept ‘Personal Advisory Council’ of Stuffed Animals to Solve Problems

October 2, 2026

Disgraced Team USA Gymnastics Doctor Larry Nassar Removed from Michigan Sex Offender Registry

October 2, 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 (4,399)
  • Entertainment (7,193)
  • Finance (5,197)
  • Health (2,926)
  • Lifestyle (1,947)
  • Politics (4,804)
  • Sports (5,385)
  • Tech (2,771)
  • Uncategorized (4)
  • World (7,456)
Our Picks

Copper jumps to its highest level ever. What the metal is telling us

August 7, 2026

What Lindsey Graham’s Death Reminds Us About Healthcare AI

July 18, 2026

Navigating Post-Service Trauma And Building A Healthy Life

March 27, 2025
Popular Posts

(VIDEO) Trump Gives Hilarious Take on “Freako” James Talarico’s New Pro-Meat Campaign * The Gateway Pundit * by Jordan Conradson

October 2, 2026

Ms. Rachel’s Politics Sparks Pushback from Parents: A ‘Mouthpiece’ for Hamas

October 2, 2026

Anthropic Co-Founder Daniela Amodei Kept ‘Personal Advisory Council’ of Stuffed Animals to Solve Problems

October 2, 2026
© 2026 Patriotnownews.com - All rights reserved.
  • Contact
  • Privacy Policy
  • Terms & Conditions

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