ABSTRACT
Foreign investors face the same presence of bribery and corruption encountered by domestic firms, intensified by the attention their prosperity attracts on the principle of ‘whipping the fat ox’. Most foreign investors face the dilemma that falling in with such practices not only often offends Chinese law, but also runs contrary to ethical and legal requirements in their home countries. In the case of American companies, the Foreign Corrupt Practices Act extends the reach of such obligations to their dealings within China. Generally, however, this act is useful not so much for fear of the threat it poses, as the risk of being charged is usually being regarded as slight. It nevertheless does serve as a useful excuse for companies seeking to resist pay-offs.
