China’s Draft Anti-Corruption Law: A Practical Guide For Multinational Companies

Key points

• China has introduced its first dedicated anti-cross-border corruption law.
  
  
• The Draft Law would extend PRC anti-corruption enforcement to a wide range of overseas conduct.
  
  
• Covered companies could face penalties for compliance failures even absent underlying corruption.
  
  
• The Draft Law adopts several features not found in the United States' Foreign Corrupt Practices Act of 1977 (FCPA) or the United Kingdom's Bribery Act 2010 (Bribery Act), including blocking and countermeasure provisions.
  
  
• If enacted, the Draft Law would introduce new compliance and enforcement considerations for foreign companies operating in China and Chinese enterprises with overseas operations.

Introduction