new regulations will enhance efforts against corruption. The regulations established ― 10 Taboos ‖ for acts of party members that violate political, personnel, and financial regulations and who are involved in bribery, malfeasance, and infringement of others’ rights. The taboos included lobbying officials of higher rank, handing out pamphlets or souvenirs without authorization, holding social activities to form cliques, and offering or taking bribes. Also on the list were making phone calls, giving gifts, holding banquets or conducting visits to win support, covering up illicit activities, spreading hearsay against others, using intimidation or deception, and arranging jobs for others. Some believe that the execution of three bankers, for ― a run-of-the-mill fraud,‖ just before the Communist Party’ s annual meeting, was an indication of how serious the government was about cracking down on corruption. Much of China’ s early efforts to stem corruption were focused on activities among domestic Chinese companies and not on China’ s foreign business community. Traders, trade consultants, and analysts have said that foreign firms are vulnerable to a variety of corrupt practices. Although some of these firms said they had no experience with corruption in China, the majority said they increasingly were asked to make payments to improve business, engage in black-market trade of import and export licenses, and bribe officials to push goods through customs or the Commodity Inspection Bureau, or engage in collusion to beat the system. The Hong Kong Independent Commission Against Corruption reports that outright bribes, as well as gifts or payment to establish guanxi, or ― connections,‖ average 3 to 5 percent of operating costs in the PRC, or $ 3 billion to $ 5 billion of the $ 100 billion of foreign investments that have been made there. The most common corrupt practices confronting foreign companies in China are examined here. PAYING TO IMPROVE BUSINESS Foreign traders make several types of payments to facilitate sales in China. The most common method is a trip abroad. Chinese