Hey all, I'm a lawyer and I recently spoke with a Chinese client about the differences between doing business in the U.S. and in China. His opinion surprised me a little bit.
He said that in China it's necessary to pay lots and lots of bribes to get things done. According to him, getting permits and approvals typically involves taking local and provincial officials out to expensive dinners and slipping them cash in envelopes.
Here, he says he's had to pay only one bribe - to a building inspector in a state on the east coast. However, he's had to pay lots and lots of fees (mostly attorneys fees, but also fees for architects, city engineers, inspectors, etc.). Overall, his opinion is that these fees add up to more than the bribes he would've had to pay in China.
Lawsuits by disgruntled employees are the biggest source of the client's fees. For example, a single FLSA claim (which might involve only several hundred dollars in backpay) can easily cost $20,000 to defend.
Additionally, he mentioned that it's just a lot easier to pay a bribe and be done with it - as opposed to sitting through depositions, divulging records, and sitting in on numerous conference calls with lawyers.
I'm not saying a bribe-based legal system is better than what we've got. Not at all. I just think it's interesting that it can be easier for employers to navigate that environment. I'd always thought that system was far more exploitive and suppressive of business (at least small business).
Of course, the ease to the employer is not the only consideration. We have a robust legal system that allows employees, vendors, and third parties to vindicate their rights - rights which would be cast aside if a local official could simply waive them away after receiving a bribe.
