To its titles as the world's factory and the fastest-growing economy, the mainland has added a less prestigious world No 1 ranking - the market for fraud.
No fewer than 98 per cent of Chinese companies quizzed in a global survey on fraud by consulting firm Kroll with the help of the Economist Intelligence Unit reported they were victims of fraud this year.
That was a 9 per cent increase over the number of companies reporting fraud last year, and lifted the mainland above Brazil as the market reporting the highest incidence of fraud in the world. Brazil reported a 90 per cent fraud rate this year, slightly down from 92 per cent last year.
Kroll's just-released 'Annual Global Fraud Report' was based on a survey of 800 senior executives worldwide in 10 industries, including finance and manufacturing. The survey was conducted in July and August with the assistance of the Economist Intelligence Unit and is the fourth of its kind.
Violet Ho, the managing director of Kroll China, told the South China Morning Post the rising number of fraud cases on the mainland might not be all bad. 'It shows Chinese companies are more willing to admit they have faced fraud. Before, many did not want to face the problem,' she said.
'The human factor is the most important element in preventing fraud. Companies should have a procedure to check the background of business partners and they should also be very careful in hiring staff - only if they can assure themselves they are working with honest people can they prevent fraud.'
Edward Chow Kwong-fai, the chairman of CIG Yangtze Ports, a Hong Kong-listed company with port operations on the mainland, said fraud was a major concern when doing business on the mainland.