Firms find direct requests for cash payments—undeniably
illegal—the most difficult. One well-placed source said that a
major trader, eager for buyers in the face of an international
market glut, had fallen into regularly paying large kickbacks
into the Honduran, U.S., and Swiss accounts of officials at a
PRC foreign trade corporation. Refusing to make payments
may not only hurt sales, it can also be terrifying. A U.S. firm
was one of several bidders for a large sale; a Chinese official
demanded the MNC pay a 3 percent kickback. When the company
representative refused, the official threatened: “You had
better not say anything about this. You still have to do business
in China, and stay in hotels here.” Not surprisingly, the U.S.
company lost the deal.