law - On banned businesses

The China Law Blog summerizes a hilarious discussion they had a potential client who wanted to set up a business in China that is banned by law.

Steve and I would explain that what the company was proposing is prohibited in China. The company would respond by noting how good its business would be for China's economy. Steve and/or I would then explain the risks of the government shutting down the business once it became at all visible. The company would then talk about how difficult it would be for the government to shut down a business that was doing so much to help so many Chinese businesses.

As many of my readers might have: it is very recognizable. Especially in a few sectors on my agenda, like media and telecom, I have had similar conversations so often, in some cases with companies that were already doing their illegal thing in China. I do not think the other side is listening, I guess they will look for another law firm that wants to earn a buck here.