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Business Corruption in China

China flag, corruptionThe Chinese government, led by President Xi Jinping, is in the midst of a sweeping anti-corruption campaign that has led to thousands of arrests. Despite this reform effort, corruption continues to negatively influence the business environment. Companies are likely to experience bribery, political interference or facilitation payments when acquiring public services and dealing with the judicial system. The common practice of guanxi is a custom for building connections and relationships based on gifts, banqueting, or small favours. Guanxi-related gifts can be considered bribery by foreign companies and by national and international anti-corruption laws. Companies are advised to carefully consider the type and value of gifts, the occasion, and the nature of the business relation.

China offers a comprehensive legal framework in both the public and private sectors to criminalise several corrupt practices such as facilitation payments, money laundering, active and passive bribery, and gifts. In line with the anti-corruption campaign, legislation is enforced. Anti-bribery laws target corporate and individual offenders. The Criminal Law covers criminal bribery offences, and the Anti-Unfair Competition Law focuses on commercial bribery. Punitive measures range from fines to capital punishment, depending on the severity of the case. 

October 2015
GAN Integrity Solutions