Over a million Chinese officials have been probed for corruption since Xi Jinping took power in 2012. That means on average, about 45,000 officials have been purged in the provinces where you have investments.
Xi’s anti-corruption drive is in part aimed at eliminating factional rivals. This large-scale power shift has cost large companies like JP Morgan, Microsoft, Qualcomm, GlaxoSmithKline, etc. tens to hundreds of millions in fines.
As Xi sweeps China’s financial sector after the 19th Party Congress, the ongoing factional fighting will only intensify. So political risk is the foremost risk that foreign investors in China must factor into their business strategy and investment decisions.
Companies can still manage China’s hazardous political environment with the right data and risk metrics. And we have such analytical tools.
PolitRisk China can provide you with:
• First-of-its-kind Chinese official and officialdom prospective analysis from Zhongnanhai down to the provincial level.
• Official-at-risk monitoring and advanced alerts.
• Analysis of the impact of factional struggles on China’s industries.
• Analysis of specific Chinese policies from the perspective of national strategy and factional struggles.