It's hard to know the prevalence of corruption. The government is probably correct to say that their anti-corruption campaigns have been effective, and there's a critical mass of influential people who pride themselves on clean practice. In that view, widespread corruption is old news, and you may well get caught. But there are also people in many places who still credibly claim they can't do a day's business without passing the red envelope under the table, and you just have to play along if you want to get anywhere.

So you'll have to play it by ear. Your general stance should be that you refuse to pay bribes. You run a clean ship with a clear set of transparent practices, and you want to keep it that way. At the same time, you may feel some need to look the other way when discretion dictates. But if you find yourself in a situation where bribes and kickbacks are the only game in town, you'll have to make your own decision whether to hold your nose or bail out.

11. Do Your Due Diligence

Any economy like China, rapidly pulling out of underdevelopment, is going to be a contradiction containing many advanced firms with high standards alongside a significant still-backwards sector. So your primary due-diligence task is to sort them out. If you deal with a firm which is still trying to remain back in the lawless days, not only will you be propping up regressive forces, but you'll get ripped off. And you may get in trouble with the authorities. In recent years, Chinese authorities have been pretty effective in using enhanced enforcement and professional peer pressure to shift the centre of gravity toward ethical practices in the major centres. If you're working in the less developed areas, you'd better be on your guard.

In either case, you need to check their references rigorously. Conditions vary in China, and that dictates process. As a still-developing country, you can still expect to find many firms functioning at low levels with low standards. The days of poor quality, deadlines not honoured, work not finished, inappropriate substitutions, financial rip-offs, etc. are still alive in some quarters. It's true enough that the famous Chinese national pride is impelling them to develop higher standards and join the world community of top-level professionalism. So don't underestimate them, or the rapidity of their progress. Just don't get caught with a dud.

Of course there is the matter of the language and culture gap, which is why you need to work with knowledgable consultants. But these consultants themselves will vary in quality, so there's the first item for strict reference checking. Who have they worked for? Contact past clients and ask how satisfied they've been. These are probably people who speak English, so you can readily get a useful reference. Stick to professional references, not just friends and colleagues, and look for a track record of successful international deals.

When checking out Chinese firms, specialize in naive questions and keep asking until you're satisfied. Don't let them deflect you with embarassment. There's no such thing as a stupid question, and there's no shame in questioning repeatedly until you understand. Persistence may be effective in breaking through a runaround, and it's helpful if you know how to use indirect language in a passive-aggressive manner. But you'll do best when you can deal with the higher-quality firms that will be straight with you and won't give you the runaround in the first place.

Got this all down? Done your homework? You're ready to meet. Good luck.

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