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Guanxi in China 'can be a double-edged sword'

A relationship of trust can paper over fraud, for example, warn due-diligence experts

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Singapore

DOING business in China, it is said, boils down to guanxi, or relationships.

But buying a company linked to someone powerful can just as well work against you, warned participants at a symposium, who were discussing issues related to conducting due diligence in China.

sentifi.com

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