Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Bribery in Today's China

By Rupert Utley
September 29, 2010

Since the late 1990s, companies conducting business in China have experienced a surge in enforcement of anti bribery legislation, ranging from significant enforcement of Chinese domestic laws to FCPA for U.S. companies. As an example of the enforcement activity by the Chinese government, the country's Central Discipline and Inspection Committee takes action against approximately 180,000 officials annually, with an estimated 15%-20% of them for corrupt activities. This past April, the UK passed the Bribery Act, which imposes severe penalties on British violators for any bribery, not just those of government officials, in China and worldwide. In-house counsel for corporations conducting business in the world's fastest-growing market should take heed of these legislative and enforcement shifts, as well as the slowly evolving cultural mores in the new China.

Today's China is experiencing what I call a “corruption dichotomy.” There's a Chinese proverb that illustrates the historical blind eye to corruption: “The mountains are high; the emperor is far away.” That notion was recently quantified by Dr. Pei Minxin of Carnegie Endowment for International Peace, who estimated that corruption in China amounts to about 3% of GDP and that the chances of getting caught, convicted and being jailed for bribery is also about 3%. But concurrently, China has enforced some of the world's most stringent penalties for those found guilty of corruption. Cheng Kejie, former vice-chairman of the Standing Committee of the National People's Congress, was tried and executed for accepting bribes. The mountains still may be high, but the long arm of Chinese officials is growing longer.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It Image

Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?

Bankruptcy Sales: Finding a Diamond In the Rough Image

There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.

The DOJ's Corporate Enforcement Policy: One Year Later Image

The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.

A Lawyer's System for Active Reading Image

Active reading comprises many daily tasks lawyers engage in, including highlighting, annotating, note taking, comparing and searching texts. It demands more than flipping or turning pages.

Protecting Innovation in the Cyber World from Patent Trolls Image

With trillions of dollars to keep watch over, the last thing we need is the distraction of costly litigation brought on by patent assertion entities (PAEs or "patent trolls"), companies that don't make any products but instead seek royalties by asserting their patents against those who do make products.