As a punishment for setting up shops in China without state approval, French retail giant Carrefour will escape with a scolding and a slightly slower pace of expansion - but no fine and no closure of its 28 booming outlets in 15 cities.
That is what company officials and diplomats close to the story say. Just as with the release of the 24 United States air crew, Beijing has realised it has more to lose than gain by antagonising an important foreign partner.
Carrefour, the world's second biggest retailer, with operations in 26 countries and a market capitalisation of US$49 billion, has been one of the most successful foreign companies in China. In just six years since opening its first store in 1995, it has grown so fast that its sales last year were about six billion yuan (about HK$5.62 billion), putting it among the top four retailers in China.
Official figures for retail sales last year showed Shanghai-based Lian Hua Supermarkets as No 1 with 11.14 billion yuan, followed by Shanghai Hua Lian with 6.52 billion yuan and Dalian Commercial Group with 6.2 billion yuan.
Carrefour has earned its rank with well-stocked warehouse stores in good locations in key cities, offering basement prices and with a lean labour force. It sources more than 80 per cent of its goods in China.
On February 8, the Financial Times of London reported that Carrefour had not received central-government approval for its stores, as required by law, having signed contracts instead with local governments eager to attract such a successful company and big taxpayer. The central government was preparing measures against it, the paper said.