Some time ago, some media said that the medical device division of Siemens AG of Germany was investigated for allegedly bribing the hospitals in mainland China. Although this news was denied, it has led to the speculation and interpretation of the Chinese government's attitude towards foreign-funded enterprises.
Over the past two years, China’s anti-corruption actions have attracted worldwide attention. Many people have noticed that China’s fight against “foreign tigers†is also not soft. At present, many foreign-funded pharmaceutical companies such as GlaxoSmithKline, AstraZeneca, Sanofi and Youshibi have been investigated for suspected commercial bribery. Some Western media have thus asserted that foreign-invested enterprises in China are falling out of favor, and some even speculate that China is doing this to favor domestic competitors.
At present, combating corruption and practicing the rule of law have become the new normal of China's political and social life. In this context, it is normal for foreign companies to be investigated for suspected commercial bribery. After all, in the same period and in the same environment, many domestic-funded enterprises, especially state-owned enterprises, have been investigated for anti-corruption, and it is unreasonable for a foreign-funded enterprise to be independent.
It is not suitable for the Chinese government to strengthen anti-corruption law enforcement against foreign-funded enterprises, mainly because some foreign-funded enterprises have become accustomed to enjoying super-national treatment in China. For a long time since the reform and opening up, foreign-funded enterprises have not only enjoyed preferential treatment in terms of taxation, but also obtained some degree of exemption from certain local governments even in complying with the law. With the improvement of the market economy and the advancement of the rule of law, China is increasingly considering foreign companies as equals. This is not only an inevitable trend in the development of the market economy, but also an inherent requirement for the full rule of law. If foreign-invested companies and Western societies are not comfortable with this reasonable change, then it is they, not China, that should adjust their mindset.
It can also be seen from the investigation of relevant illegal cases that foreign-funded enterprises, like domestic-funded enterprises, are not natural obeying angels. Many multinational companies surveyed by China have been inferior, and GlaxoSmith has been investigated and punished by Western countries for commercial bribery. Some transnational corporations have come to China and have violated Chinese laws in the name of “going to the countrysideâ€. It can be seen that no matter whether China's law enforcement agencies or the Chinese public, the consciousness of complying with the law of foreign-funded enterprises can not be too superstitious. Foreign companies should not be able to become extraterrestrial.
However, cracking down on its illegal activities does not mean that China no longer attaches importance to foreign-funded enterprises, and China will not selectively enforce foreign-funded enterprises in favor of favoring domestic-funded enterprises. This is not in line with the overall situation of reform, opening up, and the development of a socialist market economy, nor is it in line with the basic requirements for comprehensively governing the country according to law. The market economy requires equal treatment of all kinds of economic entities. China vigorously rectifies governance, eliminates corruption, strengthens law enforcement, and promotes judicial reform, in order to create a clean and fair environment for the market economy. China’s “Tiger†filming “Flies†has nothing to do with the surname of “Yangâ€.
In fact, as long as the Chinese government adheres to effective anti-corruption actions, all enterprises, including foreign-funded enterprises, will benefit from the effective reduction of market transaction costs. In February of this year, the "2015 Business Environment Survey Report" released by the American Chamber of Commerce in China showed that because of China's strong anti-corruption, "corruption" is no longer the most worrying issue for US companies in China. This fully shows that as long as the principle of the rule of law is upheld, whether it is to attack the local "tiger" or "foreign tiger", it is the fortunate of Chinese society and the fortunes of foreign-funded enterprises.
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