PwC's Troubled Relationship with China

PwC faces potential sanctions in China due to its failure to alert authorities regarding financial discrepancies at its former client, Evergrande, which inflated its revenues by approximately $80 billion before defaulting on debts in 2021. The Chinese government is expected to impose a six-month ban on PwC's operations within the country, marking a significant shift in its business landscape. This situation highlights the heightened scrutiny that foreign accounting firms now face and could lead to unprecedented changes in China's auditing environment. Although business may resume for PwC in March, the implications of this incident will likely reverberate through the industry for years to come.