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China's World Trade Compliance

By Usha C. V. Haley, Ph.D.
November 06, 2006

Thank you, members of the Commission, for the honor of addressing such a distinguished and thoughtful panel. Industrial subsidies in China derive from governmental dominance of the economy and from various factors including the central, provincial and municipal governments' strategic goals, patronage, and corruption. The subsidies include direct and indirect components that affect both the top and bottom lines of industrial operations. My statement stems from research that I have conducted over the last 7 years on business in China, some of which has been published in my book, The Chinese Tao of Business: the Logic of Successful Business Strategy (John Wiley & Sons). Answers to specific concerns follow.

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