International Law

Is China Too Risky? Aon Says No.

By Dan

Not quite sure why, but I have been writing a lot lately about the risks of operating a business in China. A few months ago, I did a post entitled China Is The Risk. I See Clouds and a few weeks ago I did a post entitled Secure And Insecure Countries. In Light Of Egypt. An Open Thread. Both of these posts talked of the risks of being in China and sought to compare that risk to other countries.

In response to the Egypt post, a loyal reader sent me a link to a super-cool interactive country by country risk map compiled by Aon Corporation, a leading "provider of risk management services." The map ranks countries from Low Risk to Very High Risk, with Medium-Low Risk, Medium Risk, Medium-High Risk, and High Risk in between those two extremes. The rankings are based on the following:

• Exchange Transfer
• War/Civil War
• Strike, Riot, Civil Commotion, Terrorism
• Sovereign Non-Payment
• Political Interference
• Supply Chain Disruption
• Legal & Regulatory

Here are how various countries fared:

• China --  Medium Risk
• India --  Medium-Low Risk
• Vietnam --  Medium Risk
• Bangladesh --  Medium-High Risk
• Thailand --  Medium-High Risk
• Singapore --  Low Risk
• Cambodia --  Medium-High Risk
• Laos --  Medium-High Risk
• Hong Kong --  Low Risk
• Taiwan --  Medium-Low Risk
• Japan --  Low Risk
• Russia --  Medium Risk
• Malaysia --  Medium-Low Risk
• Indonesia --  Medium Risk
• Egypt (before the street demonstrations) --  Medium Risk
• Brazil Medium --  Low Risk
• Mexico --  Medium-Low Risk
• South Korea --  Medium-Low Risk
• North Korea --  Very High Risk

Interesting. What do you think?

Full post as published by China Law Blog on February 07, 2011 (boomark / email).