Western executives have long talked about the challenges of doing business in China and the recent experience of hotels operator Millennium & Copthorne provides a case study after its 70 per cent-owned subsidiary, Millennium & Copthorne New Zealand, unearthed some wayward happenings at its Chinese joint venture.
Mr Cheung Ping Kwong, the former chief executive one of the joint venture's key business interests, has managed to illegally sell $48m (£31m) of property. Millennium & Copthorne New Zealand says that, even though it tried to oust Mr Cheung in November, earlier this month he used "unconventional business practices (including intimidation and forceful tactics)" to implement the sale of the West Coast Resort Hainan Hotel and an 80 per cent interest in a development in Dongguan, China. Millennium & Copthorne says its effective interest in the missing assets is $19m (£12.7m) and management is taking all possible action to rectify the situation.