China executed Zheng Xiaoyu, the former head of its food and drug agency, for approving untested drugs in exchange for cash and gifts valued at $832,000.

Punishment like this may seem harsh by western standards and, perhaps, even by Chinese standards.  Still, the context may justify such sentences.  Consider:

Risks internationally and domestically when drugs are approved without testing

Need to make radical changes so that other countries will accept Chinese products

Message that is sent when high ranking government officials accept bribes

Issues with medical and pet food contamination in China

Traditional importance of relationships/guanxi

Maybe, in light of these factors, China needed to impose such a harsh punishment in order to send the message that such behavior is not to be tolerated and that the country is serious about making changes. 

If this scenario were used in a class on international business, questions might include:

Would an official in the US have received similar punishment for similar actions? 

Why or why not? 

What cultural differences could explain the reasons that US officials might have received a lesser punishment? 

What message does this communicate to firms which do business in China?

How might this situation impact a firm’s actions when doing business in China?

How might Zheng Xiaoyu’s advisors have negotiated a lesser punishment?

Filed by Coleen Davis at 7:20 am under Cultural Issues, Current Events, Negotiations, Tips for Students