It's no longer business as usual in China

New York

CHINA is changing the rule book for business, forcing multinational companies to figure out how to play a new game or risk losing out on the world's second-largest economy.

When China joined the World Trade Organization 13 years ago, the government welcomed foreign companies, eager for their factories and technology. Now, China is using its growing economic and financial muscle to dictate new terms, as dozens of American, European and Japanese businesses face scrutiny for corruption, monopolistic practices and, most recently, tax evasion.

With heads of state and corporate chieftains in Beijing for a major economic summit this week, China's increasing economic nationalism is expected to be heavily debated. The squeeze on multinationals has coincided with President…