New law strengthens overseas anti-corruption efforts

Editor’s note: The Standing Committee of the National People’s Congress on Friday enacted a law aimed at combating cross-border corruption. The People’s Courts News and Media Agency published a Q&A session with legislative experts on how the law can help combat cross-border corruption. Below are excerpts of the interview. The views don’t necessarily represent those of China Daily.

The law addresses a critical gap in China’s legislation by enhancing the foreign-related anti-corruption legal system. The move reinforces China’s anti-corruption stance and meets the country’s need to safeguard its national security and development interests.

Guided by the vision of building a community with a shared future for humanity, China has consistently deepened international anti-corruption cooperation and faithfully fulfilled its obligations under the United Nations Convention against Corruption. The country has proposed a series of international initiatives to establish an international anti-corruption governance system that is fair and reasonable.

The law articulates China’s basic positions, philosophies and principles on countering cross-border corruption. It asserts the country’s right to implement blocking measures and countermeasures against inappropriate foreign actions, thereby safeguarding its national sovereignty, security and development interests. The law helps build international consensus on international anti-corruption efforts, serving as China’s contribution to global anti-corruption governance.

Furthermore, the legislation is a practical measure to support the healthy development of enterprises engaged in cross-border operations. It fosters a business environment that is market-oriented, law-based and internationalized. Having signed Belt and Road cooperation documents with more than 150 countries and more than 30 international organizations, and as a major trading partner to more than 160 countries and regions, China has over 50,000 enterprises operating overseas. The law clarifies the integrity compliance obligations of Chinese enterprises operating overseas.

The legislation also enriches the legal toolkit for fugitive repatriation, asset recovery and the handling of foreign-related corruption cases.

The fight against corruption still faces challenges, with an increase of foreign-related factors. The law consolidates the practices and outcomes of China’s anti-cross-border corruption efforts since 2012 into State legislation. It helps increase the legal measures to combat cross-border corruption, enhancing the country’s detection, evidence gathering, asset recovery capabilities and thus its ability to secure convictions against wrongdoers.

Notably, there is a dedicated chapter in the law that mandates enterprises engaged in cross-border business operations establish integrity compliance management systems and improve their operating mechanisms. This is the first time that corporate integrity compliance has been elevated from a policy requirement to a legal obligation.

Such stipulations will help enterprises in setting up robust integrity compliance systems which align with both China’s national conditions and international practices.