China expected to intensify probes into commercial bribery next year: report
New tide of investigations likely after impending change to law against unfair competition
Investigations into commercial bribery are tipped to surge on the mainland once a change to its law against unfair competition kicks in and market supervisors are freed up from overseeing institutional reforms, according to a joint report.
“China is strengthening its anti-commercial-bribery measures with improved legislation and strengthened law enforcement,” Kate Yin, the main author of the report and a partner at mainland law firm Fangda Partners, said yesterday.
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“We are likely to see a new tide of anti-commercial-bribery investigations next year once the amendment to the Anti-Unfair Competition Law is passed. A burst of law-enforcement measures usually follows a newly amended law.”
The “China Anti-Commercial Bribery Blue Paper” was jointly released by the China Institute of Corporate Legal Affairs and Fangda Partners, and based on a survey of 277 companies on the mainland in March and April.
We are likely to see a new tide of anti-commercial-bribery investigations next year once the amendment to the Anti-Unfair Competition Law is passed
China released a draft of the amended law, which covers business-related bribery, for public feedback in February. The present law came into force in 1993 and is widely seen as not keeping pace with changes in the market.
The draft stipulates that commercial bribery applies not only to sales and purchasing but also to gaining a competitive edge. It can also apply if the bribes are channelled through a third party or an agent.