GlaxoSmithKline has run into trouble in China after allegedly getting drawn into corrupt business practices. Regardless of the truth of the claims, writes Minxin Pei, it's clear that Western firms are held to a different ethical standard than local businesses who are often allowed to be corrupt. "Western multinationals ought to increase the risk premium for doing business in China and have careful plans in place for managing both routine risks and crises, lest they fall into a river of business muck," Pei writes.

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