Chinese Anti-Corruption Laws

China's anti-corruption provisions are largely contained in the Anti-Unfair Competition Law and the Criminal Law. The former prohibits unfair conduct in commercial settings, while the latter criminalises bribery in the public sector, extortion and money laundering. The Criminal Law also prohibits bribery of foreign officials, bringing China’s anti-corruption legislation in line with other strict anti-corruption legislation.

Chinese Compliance Guide

China has stepped up enforcement of its anti-corruption regulations, highlighted by high-profile investigations into large Western companies. The Anti-Unfair Competition Law addresses commercial law (bribing the private representative of an organisation), while the Criminal Law addresses both official bribery (bribing a public official) and commercial bribery.

Many Chinese companies are state-owned enterprises (SOEs), raising the risk of official bribery – a criminal offence under the Chinese Criminal Code – and establishing the ‘foreign official’ element under the FCPA. Compliance officers should consider a number of precautions, including:

Training of management and employees about Chinese anti-corruption laws and other applicable foreign laws, including the FCPA and Bribery Act, as part of their ongoing compliance training.

Widespread communication of company policies, including the company code of conduct, anti-corruption policy and the company policy on gifts and hospitality.

Require due diligence of partners and suppliers, and enhance reviews of politically connected persons and customers.

Chinese Anti-Corruption Laws Summary
Anti-Unfair Competition Law Full Text
Criminal Law of the PRC Full Text