By Peter Humphrey           May 2013

Over the past 15 years, we have seen the gradual emergence of a commercial investigation industry in China. It began from crude anti-counterfeit outfits and family investigation agencies and extended to the more sophisticated areas of due diligence, fraud investigation and forensics, as well as compliance and FCPA investigations. We also saw increasing availability of what most countries call “public records". The availability of such records enabled due diligence specialists and corporate fraud investigators to do their job in a country where foreign investors feel at risk due to a high white-collar crime rate, a lack of transparency and strong cultural barriers in business operations. The promising environment that evolved for the fight against fraud and bribery in company operations in China has suffered a major setback due to a sudden action to suppress certain data contained in such records. Why has this U-turn happened, and what is its impact on anti-fraud work?
(The Fraud Examiner, ACFE)

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By Peter Humphrey           March 2013

There are clear and ever-present dangers challenging companies who do not take adequate preventive measures. Companies with precious niche technologies are particularly vulnerable. Good fraud risk management can have a beneficial impact on your bottom line. Companies operating in China should strive to keep unethical elements out of their business. Otherwise, they can incur substantial losses.
(Published in the British Chamber of Commerce Yearbook)

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By Peter Humphrey           December 2012

Good ethics management can make a substantial impact on your bottom line. Companies operating in China should strive to keep unethical elements out of their business. Otherwise, they can incur substantial losses. Read on ….
(Published in the German-Chinese Business Association Annual Yearbook)

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By Peter Humphrey           July/August 2012

In the last three decades, China has shown stunning economic and social progress. However, its super achievements have come at a cost — the dramatic resurgence of corruption and widespread fraud. Here are ways that multinational companies can try to keep out of trouble in China.
(Published by the Association of Certified Fraud Examiners, printed magazine version)

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By Peter Humphrey           1 July 2012

In the last three decades, China has shown stunning economic and social progress.
However, its super achievements have come at a cost — the dramatic resurgence of corruption and widespread fraud. Here are ways that multinational companies can try to keep out of trouble in China.
(Published by the Association of Certified Fraud Examiners online magazine)

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By Peter Humphrey           1 July 2011

A string of Chinese firms listed on NASDAQ, Amex and NYSE have imploded in fraud scandals after being shown to have cooked their books, faked their sales, stolen assets and pocketed capital that was raised on US markets without adding any real value to these companies. These scandals have underscored the need for caution when investing in Chinese stocks listed overseas, and reminded investors of the need for strong due diligence in order to distinguish between the good, the bad and the ugly.
(Published in Enterprise China)

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By Peter Humphrey           1 July 2011

While many economic sectors have been struggling with ups and downs and uncertainties since the financial crisis in China, the retail sector has remained an attractive area for expansion in China. But retail is not only bringing in mall developers and retailers, it is also acting as a magnet for fraudsters.
(Published in CHaINA Magazine of the Global Supply Chain Council)

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By Peter Humphrey           4 May 2011

While retail booms in China, so does retail fraud. Peter Humphrey explains the vulnerabilities faced by the retail sector involving suppliers, developers, and your own employees.
(Published in Supply Chain Times)

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By Peter Humphrey           1 December 2010

While the rest of the world has been on a big downer, retail has remained a booming area for expansion in China. But retail is not only pulling in the mall developers and the retailers, it is also a magnet for fraudsters. Foreign-invested retail chains are especially vulnerable.
(Published in American Chamber of Commerce’s magazine, China Brief)

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By Peter Humphrey           March 2010

While the outcome of the Rio Tinto bribes-for-secrets trial in Shanghai was not in doubt, the lessons from the fiasco for businesses operating in China amount to a loud wake-up call that no company can afford to ignore. Peter Humphrey discusses the outcome on CNN.

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By Peter Humphrey     November 2009

Regulatory agencies throughout the world have recently been putting the squeeze on multinationals which resorted bribery to win business, and stiff penalties have been dished out. These crackdowns mean it’s time for all businesses to take a second look at themselves. In this article, ChinaWhys discusses the FCPA crackdown. (Published in the American Chamber of Commerce in China magazine, China Brief)

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By Cedric Witek     July 2009

Major civil unrest has erupted in the Chinese western region of Xinjiang since Sunday 5 July, starting in the provincial capital Urumqi and later spreading to other parts of the region, such as Kashgar. In this article, ChinaWhys assesses the impact on China’s risk environment. (This is a ChinaWhys publication)

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By Peter Humphrey     June 2009

Managers of a Japanese appliance factory in Beijing gathered their employees and announced hundreds of layoffs due to recession. Things turned nasty. They were surrounded by workers who took them prisoner amid angry threats of violence. Somehow in a lull in the tense confrontation they escaped through a back fence and fled. Such incidents are common and have a shared trait: the foreign multinationals involved had no plan, and put their assets and people at risk. An "exit due diligence" mentality is required in this economic environment. (Published in The Beat, magazine of the British Chamber of Commerce in Shanghai)

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By Peter Humphrey     May 2009

Have you ever used a SonyEricsson condom, ridden an Electrolux bicycle or drunk Nestle car oil? Probably not. It's a nasty thought, though. And the firms who own these famous brands are appalled their names are being abused in this bogus way. But it is surprising how many react too late or not at all, which can result in market confusion and brand dilution. This is a growing manifestation of intellectual property piracy that the victims often seem unable to cope with. (Published in the magazine of The British Chamber of Commerce in China)

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By Peter Humphrey     August 2008

There is one industry that is booming in China like everything else but doesn't get written about as much as the others - it's called fraud. It can be in your supply chain, among vendors, distributors, employees and joint venture partners, or it can be among people who you use to transact an acquisition or a new partnership or a securities deal. Management fraud, distribution and purchasing system fraud, and securities fraud, have become a major headache to avoid. (Published in Chamber Eye, magazine of the British Chamber of Commerce in southern China)

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By Peter Humphrey     May 2008

There is a downside to China's get-rich-quick social revolution in the form of the ever-present danger of fraud - unless you take adequate preventive measures. Good ethics management can protect your business and favourably impact your bottom line. (Published in Bridge, Magazine of the Swiss Chamber of Commerce in China)

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By Peter Humphrey     April 2008

China is booming, so it is no surprise that many foreign companies see the country as a bright spot for sustained growth and profitability. But proper research is critical. Many firms encounter problems from being ill-prepared for business in China and unfamiliar with the risks, and they end up suffering huge losses as a result of white-collar crime.

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By Peter Humphrey     January 2008

China is booming but so is fraud. It is not so much the daily headline news about high-level graft in SOEs or government agencies that foreign investors and outsourcers need to worry about. It is in the supply chain, in their own midst, among vendors, distributors and staff. Management fraud, distribution and purchasing system fraud have become rife; and multinationals shifting their core supply chain operations to China are highly vulnerable to fraudsters.

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By Peter Humphrey     January 2008

Regular reviews of corporate governance issues and internal compliance are essential for maintaining quality internal control systems and catching fraudsters.

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By Peter Humphrey     March 2007

Fraud and corruption are a growing problem for many companies operating in China. The pressure has grown in recent years to police the problem in order to comply with tough new corporate governance and regulatory standards such as the Sarbanes Oxley Act and international laws on bribery and money laundering. In this stringent environment companies would well be reminded of some of the dangers and pitfalls along with ways to tackle the risks.

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By Peter Humphrey & Yingzeng Yu     July-August 2006

The Chinese government's tolerance of a market economy and relaxation of communist-style controls on economic activity has unleashed get-rich-quick entrepreneurs and opportunistic fraudsters. Here are some tips for multinational companies and their fraud examiners stepping into a mysterious and dynamic situation.

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By Peter Humphrey          1 June 2006

In today's business world, the word ethics has moved to the top of the governance agenda. The collapse of Enron and Anderson pressured businesses and regulators to protect stakeholders with enhanced controls. The beefing up of SEC rules and new laws such as the Sarbanes Oxley Act, plus new anti -bribery and anti-money-laundering laws, all have put the onus on corporate shoulders to manage in an ethical way. If you take a chance, sooner or later you may pay a fine or go to jail, or both. This heightened responsibility is finding its way from the board rooms into the China operations of leading multinationals. Hard experiences and ethics lessons from the frontlines of business in China are pushing this tendency.

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By Simon Stokes and Peter Humphrey           1 Feb 2006

Good business ethics are important to reduce risks and prevent loss. A company where employees do not know the difference between right and wrong, between acceptable and unacceptable behaviour, and where management adopts a permissive attitude, will wreck its bottom line and end up on the rocks. Is your company putting the necessary training and processes into place to identify and deal with such situations in China?

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By Peter Humphrey          October 2005

Multinationals are rushing to move Research & Development operations close to their manufacturing bases in China but the risks are enormous as the theft of intellectual secrets becomes a serious problem.

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By Cedric Witek          1 October 2005

China analyst Cedric Witek weighs up China's economic progress against political risks as the country continues its breakneck growth and development.

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By Peter Humphrey          3 Sept 2005

Global firms entering China must be careful to avoid the pitfalls, writes Peter Humphrey in his South China Morning Post human resources column.

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By Peter Humphrey          May 2005

MNCs operating in China should apply the same best practices for risk management and corporate governance here as in their home country. If not, the unwary and unwise could find themselves repeating the salutary experiences of executives who have had their fingers burned.

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By Peter Humphrey          March 2005

The global rush to invest in China reflects the enormous potential rewards that multinationals sense can be earned in China. With the potential rewards come risks, and perhaps the most potent threat that investors face in China is the perceived difference in the local business culture.

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By Peter Humphrey          Jan 2005

The global supply chain is undergoing a massive change and you are right in the centre of this shift. China's opening to the world, its reform and its joining the WTO have opened a floodtide of business into and out of China and confirmed it as centre-piece of the 21st century's world supply chain.

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By Peter Humphrey          Sept 2004

China seems to offer a panacea for the problems of international business: low labour costs, an opening environment and a potentially vast market. But, as Peter Humphrey warns, plenty of businesses have had their fingers burned, by not carrying out due diligence.

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By Peter Humphrey          July 2004

The global rush to invest in China reflects the enormous potential rewards that multinationals sense can be earned here. With the potential rewards come risks,and perhaps the most potent threat foreign investors face in China is the perceived difference in the local business culture.

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By Peter Humphrey          July 2003

Reading the tealeaves on china business partners requires independent research and investigation.

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By Peter Humphrey          June 2003

The General Manager of "We're Okay Thanks Inc.'s" China operation is feeling pround of himself. Three years in this job,he is now transferring home to Europe with a sparkling record.

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By Peter Humphrey          Feb 2003

Avoiding major headaches in the China business world just requires care and attention.

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