China -  Chinese law firm

Why must companies doing business in China pay particularly close attention to business courtesy expenditures?

Because in China's business climate, gifts are given far more frequently than is customary in the West. For example, when starting a business, "you should expect to give out symbolic gifts to any officials who may be helping you as well as company executives that you meet." Nearly one-half of all China-related corporate prosecutions under the FCPA since 2002 involved the provision of gifts, meals, travel, or entertainment. The prosecutions of Schnitzer, Paradigm, Lucent, Siemens, Avery, and UTStarcom show that no company subject to the FCPA can afford to ignore this risk in China.

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