Lax Accounting Standards in China

[Number Six]

http://www.nytimes.com/2012/12/07/busin ... Nj1T9e9gUw

For me the take away line in this article by Floyd Norris came at the end:

"One can only imagine the conversations of Chinese corporate officials as they discuss how gullible Americans turned out to be."

[Arthur Rubin]

http://www.nytimes.com/2012/12/07/busin ... Nj1T9e9gUw

For me the take away line in this article by Floyd Norris came at the end:

"One can only imagine the conversations of Chinese corporate officials as they discuss how gullible Americans turned out to be."

There's a simple solution. Make US audited statements subject to export controls, allowing only paper-audited statements to be given to Chinese investors.

However, I seem to recall a case in the US where essentially all the assets of a company were trade secrets, which turned out not to exist. I could be wrong, though.