On January 18, American construction company Caterpillar announced that it had uncovered a huge case of fraud at a Chinese mining company that it acquired in 2012. According to the company’s announcement, Zhengzhou Siwei Mechanical & Electrical Equipment, a subordinate of the ERA Mining Machinery Limited company, had been involved in fraudulent dealings, resulting in a loss of about 3.6 billion RMB (580 million USD). Senior management involved with Zhengzhou Siwei were fired and Luis de Leon, the VP of Caterpillar’s Global Mining unit has left his post.
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Keywords: Chinese construction fraud Caterpillar China fraud
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Absolutely true, I agree with all the above. If I learned anything during my 6 years in Shanghai, it’s "Watch your back Jack". Coming to China with your "Eyes Wide Shut" and you "will" get the inevitable. You will become prey for the many circling vultures that are lurking in every nook and cranny there. This pertains to individuals along with the big and small enterprises. In China it was my experience that the best liar, cheater and/or thief wins. Don’t get me wrong, my 6 years was fantastic in Shanghai. I loved every day, (after a year of learning the real deal) and would embrace returning. It is a fabulous country, but if you tend to be at all naïve, overly trusting and/or globule, I suggest you stay home or come as a short term tourist. Even then, it’s a good idea to have a trustworthy friend hold your hand during your stay.
Jan 24, 2013 01:31 Report Abuse
I agree with the above statement. People here really need to be smarter if considiring investing in China. There is a lot of fraud here and a lot of poeple getting their ideas, copied, and stolen. The legal system here is a big joke. People need to do their homework and take the time to investigate these companies. I am not in favor of big goverment, but since so many people are so dishonest these days, I see definately see a need for some tougher regulation here. Buy American! Our stuff maybe more expensive but its better, and at least we have a lot of regulation to keep companies more accountable.
Jan 22, 2013 16:23 Report Abuse
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