Sunday, December 27, 2015

CHINA'S NEW ANTI-TERRORISM LAW CURTAILS NEWS ON DOMESTIC "TERRORIST" ACTS


China has enacted a comprehensive anti-terrorism law. While that is a generally positive development, remember that Chinese authorities regard the independence movement, by its ethnic Uighur minority, as a terrorist entity. More ominously, the new laws place restrictions upon the reporting of what may constitute terrorist acts. If we cannot get the facts, compliance officers are at a distinct disadvantage.

This means that there will be even more censorship of negative news from China, which directly affect how we calculate and assess Country Risk. If compliance officers cannot get a true picture of the destabilizing effect of terrorist acts upon the economy, and the stability of certain regions, accurate Country Risk evaluations cannot be made. China becomes even more opaque, and harder to read, meaning that its economy, the safety of foreign business involvement, and the potential for financial crime, caries a higher level of risk.

It will mean raising Country Risk for China once again; make your own assessment,  review all the facts, and decide for yourself how much to raise risk levels at this time.   

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