Bribery is a serious problem in China, but BusinessWeek reports that U.S. prosecutors, along with their Chinese counterparts, are stepping up enforcement.

U.S. prosecutors, empowered by the Foreign Corrupt Practices Act of 1977 (FCPA) to investigate allegations of bribery anywhere in the world, have been stepping up their activities in China, where a tradition of gift-giving in business often degenerates into serious graft. The FCPA bans U.S. companies from bribing foreign officials. It also applies to foreign companies like Siemens that list their securities on U.S. exchanges. Companies that violate the FCPA face millions in fines, and executives can go to prison. U.S. authorities have upped the number of bribery cases they pursued to a resolution around the world, from 11 in 2005 to 34 last year, according to Trace International, a nonprofit anti-bribery group based in Annapolis, Md. In a report released June 17, Trace pointed out that China, with 25 cases completed since enactment of the FCPA, fell behind only Iraq and Nigeria for the most international corruption prosecutions. Citing a World Bank estimate that more than $1 trillion in bribes are paid each year, U.S. Attorney General Eric H. Holder Jr. on May 31 called “combating corruption one of the highest priorities of the Department of Justice.”

Chinese prosecutors, meanwhile, are getting more aggressive under their own antibribery laws, says Patrick M. Norton, a partner with Steptoe & Johnson who focuses on international mediation.

Slowly but surely, the game is changing.

After months of subtle pressure from the United States and other nations, China has signaled a willingness to adjust its currency policies.

China’s central bank announced on Saturday evening that it would allow greater flexibility in the value of the country’s currency, in the clearest sign yet that China will allow the renminbi to appreciate gradually against the dollar.

The People’s Bank of China said that the Chinese economy was strengthening after the global financial crisis and that it was “desirable to proceed further with reform” of the currency, known as the renminbi or yuan. The announcement comes a week before world leaders gather in Canada for the Group of 20 and Group of 8 summit meetings. A growing number of countries have been calling for China to let the renminbi appreciate, including not just the United States and European nations, but India, Brazil and Singapore in recent weeks.

This is big news. For years China has kept its currency artificially low vs the dollar. Now we might see an adjustment that let’s the market have more of an impact on the value of the currency, which can help with the China/US trade deficit.

China has made tremendous strides with its economy, particularly in the areas of manufacturing, technology and education. Yet China has resisted political change. The harsh efficiency of their system relies on suppressing dissent. Real debate is not tolerated.

Accordingly, Chinese officials are terrified by social media sites like Twitter and Facebook. They’ve seen what can happen in places like Iran, where resistance can spread exponentially with the power of Web 2.0 tools. Facebook and Twitter have been blocked in China since the unrest this year in Xinjiang

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, and there’s no end in sight.

Yet these repressive tactics will have a negative effect on China’s economic development. Twitter and Facebook are exploding in popularity in the U.S. and around the world. The collaborative nature of these tools presents incredible opportunities for businesses, entrepreneurs and educators. By blocking these tools, China is falling behind.

How long can this last? I suspect their finger in the damn strategy is doomed to failure.

Despite their rhetoric against protectionism, the Chinese government has implemented some policies Kids movie full Black Narcissus film

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China has begun a concerted effort to keep its export economy humming, even as demand for its goods has plummeted with the global downturn.

Risking the ire of the United States and other trading partners, the Chinese government has quietly started adopting policies aimed at encouraging exports while curbing imports, even though China, as one of the world’s largest exporters, has aggressively criticized protectionism in other countries.

The government has sharply expanded three programs to help exporters, giving them larger tax rebates, more generous loans from state-owned banks to finance trade, and more government-paid travel to promote themselves at trade shows around the world.

At the same time, Beijing has banned all local, provincial and national government agencies from buying imported goods except in cases where no local substitute exists.

The rule, issued as part of the country’s economic stimulus plan and enforcing a seldom honored Chinese law from 2003 favoring domestic suppliers, exploits China’s failure so far to sign a global agreement barring protectionism in government procurement.

And in an effort to strengthen its own exporters, it is limiting how much of certain key raw materials can leave the country.

The last thing we need is a trade war, and other countries have done things to support their local industries, but China is now a major player in the world economy. If they continue to push the envelope, they might hurt themselves in the long run.

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Meanwhile, here in the United States, the economy is terrible and people are hurting, with many looking for emergency loans just to pay the bills.

Many are asking this question. More specifically, they are asking

download The Manchurian Candidate how Web 2.0 tools like Twitter and Facebook will affect China. Will it be harder for the regime in China to control their population?

In the past week or so, a meme has circulated on the Web: “Tiananmen + Twitter = Tehran.” But it’s not just about the so-called “Twitter Revolution.” That’s a nifty catch-phrase — the YouTube election, the Facebook effect, etc. — for many in the mainstream media who are still trying to understand how people live their lives in this social networking age. In this world, a tweet from Canada leads to a Facebook fan page created in the United States, which then leads to a YouTube video from Iran. But these platforms are merely tools that allow people to connect over ideas. A more accurate equation, said Ho, who teaches information technology at Indiana University Purdue University Indianapolis (IUPUI), is “Tiananmen + Web = Tehran.”

Yet, what this online activity ultimately will amount to — inside and outside Iran — is an open question.

“The only thing I don’t like about that analogy,” Ho said of his take on the meme, is “that I hope Tehran ends better than Tiananmen did.”

Will online energy concentrated in various pockets of the Web translate to offline activism?

I suspect it will be harder for all regimes to put down their people in the future without resorting to levels of brutality seen in extraordinary cases like North Korea. Time will tell.

Cyber warfare is heating up, and the Chinese seem determined to be players. The Chinese are creating an army of computer hackers

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, and they are unleashing them on the rest of the world, particularly against the United States.

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Now that’s progress!

Great article on Chinese foreign policy.

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The Chinese stock market is going through a serious correction, and it’s dragging down U.S. stocks as well.

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