Regardless of what type of Guanxi one might be connected to, businesses are tied by rules and regulations. For example, in the UK one is obliged to avoid conflict of interest. While operating business abroad, by law, one must comply with the UK Bribery Act 2010, which sets out rules and regulations that do not allow for bribing foreign government officials or businesses in return for B2B or B2C activities.
The cross-cultural differences between China and the EU give European companies a disadvantage regarding market rules and regulations, fearing regulatory repercussions for not complying with domestic laws. The consequences could be tremendous: the regulators back home might fine the company for the misconduct committed overseas, or they may press charges against any of the executives on the board. Many European companies argue that they have no control over what their Chinese counterparts do when securing a business deal. This adds more uncertainty and confusion to multinationals operating in China.