The real cost to China's businesses with government anti-corruption crackdown

Many news reports have been published about China's ongoing crackdown on corruption (tigers and flies), but now one of the world's biggest banks has put a price on the corruption.

The report published by the Bank of America Merrill Lynch this week, the Chinese government's anti-graft campaign could have cost China's economy more than $100bn this year alone. 

Many of the small effects of the anti-corruption drive have already been well documented; a slowdown in the restaurant trade and sales in luxury goods has seen Chinese business go out of business.

The gift giving culture is part of the Chinese business culture and required if doing business in China.

The past year has seen Shanghai's posh malls and boutique designer shops business slow to snails pace but the BofAML report suggests that the campaign is also having a significant and troubling macroeconomic effect.

Early last year, government bank deposits have been soaring, by almost 30% year on year and even honest officials are now terrified of starting new projects, for fear of being seen as corrupt that they're simply keeping public funds in the bank.

The cost to the economy of the prohibition on government consumption and the chill on admin spending is an estimated reduction in growth of at least 0.6% this year but it could, the report argues, be as high as 1.5% which gives us the figure of about $135bn of lost economic activity.

The report's authors admit their calculations are a back of the envelope estimate of fiscal contraction, but even if they are only half right it is an extraordinary amount of money and it highlights some of the challenges facing China's anti-corruption crusader in chief, President Xi Jinping.

Since taking office over a year ago Xi has made the cause his goal, warning that official graft and extravagance threaten the very survival of the ruling Communist Party.

Published by Go Frontiers (UK & China)

Derbyshire company's corporate social responsibility work to help Chinese Buddhist Master restock Shanghai Lake

In a suburb near Shanghai Go Frontiers contributed in helping the Buddhist Master Wei Jing to release fish that were originally destined for Shanghai's fish markets.

In a short Buddhist ceremony given by the Master Wei Jing over 20,000 fish were released in to the lake in an effort to help the environment and restock the lake next to their ancient temple.

Based in Loscoe village in Derbyshire, Go Frontiers helps UK companies to do business in China, build relationships and people skills in Chinese business culture with their Chinese counterparts/agents in order to save costs, improve performance, day-to-day communications and reduce risk, employee stress.

More of the story can be read on our news blog

Posted by Gary Rice, Go Frontiers (UK & China)

Mystery Guest Programs using Chinese and British People

Before hiring a company to run your mystery guestprogram its worth concidering who your consumers are and what they spend.

If you understand the Chinese business culture and social habits you will discover that most Chinese families save 40% of their income.

China is a class society with the need to show their status by purchasing products luxury branded items and want to experience the high end shopping experience.

Our expertise iis n retail, fine dining, hotel, hospitality and tourism inc Chinese tourism in the UK and the Hospitality Services for the Wealthy Chinese visiting the UK (Chinese High Net Worth Individuls (HNWI))

We can your assess your business and check for the level of service the Chinese tourists expect.

For more information contact us on +44 (0)7809 154 467 or visit our website Go Frontiers (UK & China)