find the latest legal job
Corporate Counsel and Company Secretary
Category: Generalists - In House | Location: Newcastle, Maitland & Hunter NSW
· Highly-respected, innovative and entrepreneurial Not-for-Profit · Competency based Board
View details
Chief Counsel and Company Secretary
Category: Generalists - In House | Location: Newcastle, Maitland & Hunter NSW
· Dynamic, high growth organisation · ASX listed market leader
View details
In-house Projects Lawyer | Renewables / Solar | 2-5 Years PQE
Category: Generalists - In House | Location: All Australia
· Help design the future · NASDAQ Listed
View details
Insurance Lawyer (1-3 PAE)
Category: Insurance and Superannuation Law | Location: Sydney NSW 2000
· Join a dynamic Firm · Excellent career growth opportunity
View details
In-house lawyer 1-4 PAE
Category: Generalists - In House | Location: Adelaide SA 5000
· Leading Brand · Report to a Dynamic Legal Counsel
View details
Potential investors warned over China risks

Potential investors warned over China risks

AS CHINA cements its position as the world’s largest growth economy, Australia corporates and investors have been warned to consider the political risks of investing there. Australian…

AS CHINA cements its position as the world’s largest growth economy, Australia corporates and investors have been warned to consider the political risks of investing there.

Australian corporates, and those located in other Western economies, have been rushing to join the Chinese growth story, but according to David Pulver, political risk manager at Aon Australia, prospective investors should consider issues other than financial and economic risk.

“Many Australian companies are looking to trade, develop resource projects or increase their activities to China,” he said. “However, this level of interest has done little to mitigate the significant political risks endemic to the region.”

Aon’s 2005 political risk map, a barometer of global risk conditions, showed that China is susceptible to non-economic risks such as supply chain vulnerability, political interference, legal and regulatory risks, strikes, riots and civil commotion.

By contrast, Australia, along with the US, UK and most of Western Europe, is considered low in terms of political risk.

Indeed, well-placed business sources have indicated that although economic and corporate reform is gathering pace, there remains State involvement in financial matters. “You find that even in some of the larger banks that have attracted Western investment, lending decisions, for example, are made by local party officials, not bank management,” said one US businessman with interests in China.

According to Pulver, political risks can develop very quickly. “Political, economic, religious and other tensions can shift at a moment’s notice and disrupt business operations for exporters, mining companies, traders, investors, banks and other organizations involved in international commerce,” he said. “Companies can be subjected to the discriminatory actions - or inaction - of foreign governments and third parties without adequate compensation. Commercial decisions to enter international markets should not be solely driven by economics.”

Stuart Fagg is the Editor of Risk Management,

Lawyers Weeklys sister publication.

Like this story? Read more:

QLS condemns actions of disgraced lawyer as ‘stain on the profession’

NSW proposes big justice reforms to target risk of reoffending

The legal budget breakdown 2017

Potential investors warned over China risks
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
Unite
Aug 22 2017
Professionals unite in support of marriage equality
The presidents of representative bodies for solicitors, barristers and doctors in NSW have come toge...
Aug 21 2017
Is your firm on the right track for gig economy gains?
Promoted by Crowd & Co. The way we do business, where we work, how we engage with workers, ev...
Scales of Justice, Victorian County Court, retiring judges
Aug 21 2017
Replacements named for retired Vic judges
Two new judicial officers have been appointed in the Victorian County Court, following the retire...
APPOINTMENTS
Allens managing partner Richard Spurio, image courtesy Allens' website
Jun 21 2017
Promo season at Allens
A group of lawyers at Allens have received promotions across its PNG and Australian offices. ...
May 11 2017
Partner exits for in-house role
A Victorian lawyer has left the partnership of a national firm to start a new gig with state governm...
Esteban Gomez
May 11 2017
National firm recruits ‘major asset’
A national law firm has announced it has appointed a new corporate partner who brings over 15 years'...
opinion
Nicole Rich
May 16 2017
Access to justice for young transgender Australians
Reform is looming for the process that young transgender Australians and their families must current...
Geoff Roberson
May 11 2017
The lighter side of the law: when law and comedy collide
On the face of it, there doesn’t seem to be much that is amusing about the law, writes Geoff Rober...
Help
May 10 2017
Advocate’s immunity – without fear or without favour but not both
On 29 March 2017, the High Court handed down its decision in David Kendirjian v Eugene Lepore & ...