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China broadens bribery crackdown to technology firms, says report

Mainland authorities have been shifting focus to the telecommunications, media and technology (TMT) sector as it grows in importance

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A man uses a smartphone in Beijing. Companies in the TMT sector say 38 per cent of compliance related investigations were for anti-bribery reasons. Photo: AFP
Maggie Zhang

Mainland China has been shifting the focus of wide-ranging bribery investigations to telecommunications, media and technology (TMT) firms as the industry becomes more important to the economy, according to a joint report released on Sunday.

The report said the TMT sector came under greater scrutiny in 2016 and faced more legal enforcement, alongside the traditional fields such as pharmaceutical and health care, real estate, manufacturing, finance and investment.

In contrast, the fast-moving consumer goods sector has been subject to less bribery investigations.

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The report was jointly released by the China Institute of Corporate Legal Affairs, Netherlands-based information services provider Wolters Kluwer, and mainland law firm Fangda Partners. It was based on a survey of 302 companies on the mainland in January and February.

Chinese authorities have pursued several high-profile bribery cases against companies in recent years.

The rising compliance focus on the TMT sector shows that the government is paying closer attention to the fast growing sector
Kate Yin, partner, Fangda Partners

In 2014, a mainland court fined British pharmaceutical juggernaut GlaxoSmithKline a record 3 billion yuan (US$439 million) for bribery.

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