China

Political Risk

• Political instability will remain LOW in the medium term as Xi Jinping and the ruling party retain firm control. 

• Political reforms are highly unlikely in the short to medium term

• Expropriation of property remains a risk where land ownership is in dispute

• Bribery and corruption will remain a significant risk despite Xi's high profile anti-corruption campaign 

• Contract risk will remain high in areas where domestic competition is high such as hi-tech areas. Increases environmental requirement may affect contract negotiations too

 

Asset Risk 

• Violent social unrest presents a risk to assets in China, especially in the  eastern coastal provinces

• Japanese assets are at risk from anti-Japanese protesters 

• Assets associated with countries that may be involved in the China Sea dispute, may face a higher risk during times of conflict

 

Logistic Risk 

• Cargo may be affected by blockades created by protestors. These can be in response to environmental issues, disputes over land or labour issues

• Aviation risk is minimal in China

• Skirmishes between China and Japan over the ownership of the Senkaku/Diaoyu islands may affect marine cargo

 

Personnel Risk

• The travel risk for personnel to China is MODERATE

• There is an increased risk to foreigners from kidnap

• The risk of detention of business persons affiliated with officials is likely to increase as the high-profile anti-corruption campaign continues 

• Japanese nationals are more likely to be targeted during anti-Japanese protests

 

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