At the China Law Blog, Dan Harris asks and explores this question with regard to foreign companies that are getting called out on employment matters by Chinese authorities. Harris ends his post with the following “bottom line” advice:

If you want to stay in China, now is the time to make sure that you are operating legally there and to take immediate action if you are not. The Chinese government goes considerably easier on companies that self-report their problems and propose solutions than on companies it discovers with problems.