China Tells Businesses: Don't Mess With Us

Flexing it's legal muscles,Beijing's slew of high profile investigations and fines have made foreign business owners in China decidedly skittish these days.  After launching a number of probes into the dealings of  international organizations like GlaxoSmithKline, the Chinese government is sending a more hardline message that the Party isn't going to take any crap from anyone.

In a BBC interview with Juliana Liu at the World Economic Forum's conference in Dalian, China, Mr McGregor, a former journalist who has lived in the country for more than 25 years, said China's behaviour was "very worrisome" for foreign companies. "They don't know what's hitting them right now", he said.

It's a tricky balancing act to maintain.  With little in the way of world beating innovation, or domestic brands that have made inroads overseas, big international operations bring much needed investment and employment opportunities.  Reassuring those who haven't already set up shop here that China is a land ruled by the law is crucial to entice dubious entrepreneurs that their products and services won't be ripped off by a Chinese competitor at the earliest opportunity.

Of course, the problem is the selectivity with which the law is actually enforced with.  Chinese companies have rarely fallen foul of anti-competition laws or have been placed under the same scrutiny as their western counterparts.