Business Corruption in China

The Chinese government, led by President Xi Jinping, is in the midst of a sweeping anti-corruption campaign that has led to thousands of arrests. Despite this reform effort, corruption continues to negatively influence the business environment. Companies are likely to experience bribery , political interference or facilitation payments when acquiring public services and dealing with the judicial system. The common practice of g uanxi is a custom for building connections and relationships based on gifts, banqueting, or small favours. Guanxi -related gifts can be considered bribery by foreign companies and by national and international anti-corruption laws. Companies are advised to carefully consider the type and value of gifts, the occasion, and the nature of the business relation.

China offers a comprehensive legal framework in both the public and private sectors to criminalise several corrupt practices such as facilitation payments, money laundering , active and passive bribery, and gifts . In line with the anti-corruption campaign, legislation is enforced. Anti-bribery laws target corporate and individual offenders. The Criminal Law covers criminal bribery offences, and the Anti-Unfair Competition Law focuses on commercial bribery. Punitive measures range from fines to capital punishment, depending on the severity of the case.

October 2015
GAN Integrity Solutions