Multinationals have thrived in 'loose policy environments'

The reputation of multinational companies has been badly smeared in China by a host of bribery scandals.

According to a report by Beijing-based consultancy firm the Anbound Group, of the 500,000 suspected corruption cases in China during the past decade, 64 percent involved international trade and foreign firms.

Other than Anglo-Australian mining company Rio Tinto, the latest to add its name to the "black list" is United States label-maker Avery Dennison's Asia Pacific Group, which admitted last week its subsidiary Avery China had offered bribes to research institutions and other officials in return for business contracts.