If you do business in China it is MANDATORY your accounting people are physically IN CHINA and are NOT Chinese.
Best advice: NEVER do business with China or invest in China. You will LOSE 95% of the time. Corruption galore.
Yes. Ultimately this is what will result in the downfall of the Chinese economy. There is a fundamental rule of economic development which stipulates growth rates rise 4 times the reduction in corruption / honest business practices and vice versa.
They banned any CTB employees from entering. It is a 51%/49% JV. The Chinese are responsible for reporting the financials to CTB. Because they are a majority JV, they have to be consolidated into CTB financials. CTB has accounting people involved, you typically have a "directors" sitting on the board of the JV (for a JV this size, I would assume they have a regional Sales/Product director as the Managing Director "CEO" and a regional finance director as the "CFO". The Chinese are in violation of the JV agreement by not allowing the MD's access to the facility and not providing timely data. CTB needs to sue the Chinese (not that it will go anywhere-the Chinese gov't will just take over since it is a state-owned JV. That is the danger of doing business with the pinko commies...No ticky no shirty.
I had a similar experience. The whole shared services office for Asia pacific region in Shanghai was Chinese. The Controller hired all her friends and relatives (the HR director was her brother) and paid them very well. None of them spoke "english" when you were around. We sent over an American who understood Mandarin, Cantonese and several other dialects (she was a nice blond/blue eyed financial genius) who played dumb training them how to use the SAP system. We found out all the corruption and fired all of them after hiring ex-pats to go run the office. Unfortunately, they all got 1 years pay and we had to hire 1 Chinese for each American. So we hired extremely low paid bodies to sit for 8 hours a day-no internet access even-just sat there and stared. Took 3 months to move the functions back to the U.S.
Isn't it Cooper 65% Chengshan 35%? It is not 51%-49%. Anyway, doing business in Asia is very different than doing business here. I am from the Philippines and the corruption is really bad. China is ranked #1 in the world for corruption or is it Indonesia that is #1. Philippines is #4 I am "proud" to say.