Do the economic rewards from doing business in China compensate for the risks? Read today’s account of Law firm in trouble for illegal acts By Zheng Yi (China Daily). Read it carefully. How can western-based law firms quantify their risk of falling into disfavor in the same fashion as the Chinese firms referred to in this story. I know that a number of foreign law firms have done well in China for many years and so there is a basis for optimism that other foreign law firms will do well there also. But, what if China decides that these law firms are expendable or worse? This post comes dangerously close to being political — I raise the issue because the story I refer to should be a table topic for the risk managers of the firms who think China is the next “promised land”.