China Case Analysis

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According to an article by Economy, E. and Lieberthal, K. (2007) in Harvard Business review, one of the highest risks of operating in China – China’s massive environmental degradation – is barely discussed in corporate boardrooms. This article quotes China’s State Environmental Protection Administration (SEPA) concluding in June 2006 that Chinese economy loses equivalent to 10% of their GDP annually due to pollution and environmental degradation. China faces major challenges in four important areas namely water, soil erosion, energy and air pollution. Many athletes participating in Beijing Olympics had to be diagnosed for respiratory issues due to exposure to high levels of air pollution, much to the embarrassment of Chinese Government.
Legal
Just like any other country, China has its own set of rules that companies operating within its boundaries must follow. One would question the transparency of some laws when it comes to special rules for multinationals however things are as they are. The world’s second largest consumer goods maker Unilever was fined 2 million yuan in 2011 for ...

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