Here’s the simple truth if you find yourself entering into business with a State-Owned Enterprise (SOE)…
The risks to your operations and profitability are much higher.
That’s because you’re essentially conducting transactions with a massive bureaucracy that doesn’t care about your profitability or ROI.
You’ll also be leaving yourself open to possible industrial and corporate espionage, inefficient business operations, a possible loss of your IP or investment and possible corruption or coercion by SOE individuals.
To make things even worse, it may not be easy for you to know if the company you are dealing with is actually owned by an SOE.
SOEs are present in virtually every country in the world and most operate under a cash-flow loss with significant liabilities. China has many holding companies around the world that are created to look like privately held businesses. And without the proper due diligence, you most likely will never know the difference and therefore cannot take the appropriate actions to protect yourself from the risks that come from dealing with a State-Owned Enterprise.
Your success and longevity as a business all comes down to knowing exactly who the business is, who’s actually involved with the company and where their interests are actually aligned.
Infortal combines competitor intelligence with geopolitical risk intelligence and deep due diligence to give you the vital insight you need to determine who is an SOE and how to protect yourself when working with one.