McDonald's sued in China for too much English


McDonald's (NYSE: MCD) was sued in China for, among other things, printing most of its receipts in English. The suit was not brought by the Chinese government, but by a lawyer in the country. The charge is that Chinese consumers have a "right to know" what they have paid.

McDonald's claims that all of its local restaurants are staffed by local Chinese who speak only the country's language.

This story could be an isolated incident but could also be taken at the beginning of attempts by the Chinese to control the practices of US companies in that country. It is not clear, and may never be, whether the attorney who sued McDonald's did so at the request of the government. It would be one way to avoid a direct confrontation between China and a US multinational.

If other suits by "local" attorneys or legal authorities within the provinces begin to be more frequent, it could be a sign that the government, working indirectly, is planning to gain control over business practices of companies based outside China. Wal-Mart (NYSE: WMT) has already been forced to allow local unions into its store, along with a branch of the Chinese communist party.

Douglas A. McIntyre is a partner at 24/7 Wall St.

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