Officials recently showed up at the Chinese plant of a U.S. company to perform a spot inspection of its fire preparedness. They fined the plant after finding a minor issue with its extinguishers and warned the manager they’d be back. It was the first time it had happened in the company’s 15 years in China.
This type of bureaucratic attention to U.S. firms in China is on the rise, and it highlights the convergence of two major risks for companies with operations or suppliers there.
