More Enforcement Risk For China Joint Ventures:

The FCPA Blog | By: Gwen Manseau and Jialin (Jackie) Zeng | November 29, 2017:

Having recently toughened up its anti-bribery laws, China is now aiming to expand its oversight of corruption in the public sector, possibly leading to increased enforcement efforts against both domestic and foreign companies.

In the face of this increased scrutiny, companies doing business in China may wish to reassess the risks of partnering not only with state-owned enterprises, but with any individual or business authorized to exercise public duties.

In October, the Central Commission for Discipline Inspection (CCDI) – the powerful corruption oversight body of the Communist Party – announced a plan to escalate the Party’s fight against corruption in the public sphere by creating a new National Supervision Commission (NSC).

This follows an aggressive campaign of investigations and detentions carried out in a series of pilot projects in Beijing and the provinces of Shanxi and Zhejiang, covering a combined public-sector population of more than three million individuals.

The National People’s Congress has since issued a draft Supervision Law establishing supervision commissions across the country that will oversee all “public personnel exercising public power” at the provincial, regional, and municipal levels. The law may be adopted as early as March 2018.

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