“Witness the Securities and Exchange Commission’s move to charge five large accounting firms with securities violations for failing to turn over audit documents of U.S.-listed Chinese companies,” he writes, citing the commission’s investigation of nine Chinese companies for fraud. The companies, he writes, have been protected against scrutiny by China’s assertion that detailed documents about the companies’ books would reveal state secrets.
“Perhaps the most important reason that the Chinese refuse to cooperate is that they have something really important to hide. The ‘secrets’ are almost certainly not sensitive military details,” D’Aveni writes.
Read the full story, published 1/11/13 in U.S. News & World Report.