Are there any differences in personal connections or bureaucratic meddling, among different areas in China?
In China’s more open areas, such as the Special Economic Zones in the south, the problem of bureaucratic meddling by party and government officials has been minimised. But in northern and inland areas, foreign business people will often be frustrated by layers of bureaucracy. Local party bosses, municipal managers, tax officers, and the like can make establishing an operation difficult. Although there are specific guidelines for dealing with foreign businesses, China remains a country ruled by decree. For example, a local tax official can impose a tax on a company simply because the local revenues are low or, worse, because he doesn’t like someone in the company. Chinese bureaucrats can engage in all kinds of intrigue, and have been known to sabotage projects for personal gain or revenge. For these reasons, having powerful local officials for friends can be a major asset. Land-use rights, tax bases and any number of regulations can be relaxed if the right people give their consent. Thi
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