Multinationals Need To Pay Attention To China's Anti-Corruption Campaign

The People's Republic of China continues to modify its anti-corruption enforcement regime through its new pilot program and the adoption of recent amendments to its anti-corruption laws.

In China, there are two major statutes that control anti-corruption activity: the Criminal Law of the People's Republic of China ("CL") and the Anti-Unfair Competition Law of the People's Republic of China ("AUCL"). The CL addresses commercial bribery, and the AUCL addresses both official bribery and commercial bribery. Official bribery involves bribery of a government official, while commercial bribery covers offering a bribe to a representative of a private organization. Importantly, unlike the U.S. Foreign Corrupt Practices Act ("FCPA"), which only proscribes making payments directly or indirectly to public officials, the CL and AUCL prohibit bribing private individuals and entities. In this respect, the CL and the AUCL share characteristics with the United Kingdom Bribery Act.