5 Things You Need To Know: Third Party Risk In China

In order for a foreign company to be of any scale and success in China, it has to rely on third parties. Third parties are also one of the biggest risk areas facing companies operating in China. Here are five things you need to know about third party risk in China:

1. Third Parties are riskier than you think

Companies operating in China often focus on gifts and entertainment when it comes to enforcement risks. But the use of third parties is going to pose a much larger risk. Why? Companies face the greatest enforcement risk when they are spending a significant amount of money, which most often occurs with third parties.