1. New laws or regulations

State level: No developments.

Local level (Beijing & Shanghai): No developments.

Communist Party Rules:

(1) On January 1, 2016, the Guidelines of Integrity and Self-discipline of the Communist Party of China and the Regulations of the Disciplinary Sanctions of the Communist Party of China (the “Regulations”) promulgated by Central Committee of the Communist Party of China on October 21, 2015 went into effect. These are the most important rules for all Party members to observe. The Regulations provide a detailed “negative list” of violations with respect to political, organizational, and anti-corruption discipline, and will involve strict monitoring of the behavior of Party members and organizations by establishing higher standards.

2. Upcoming laws or regulations

No developments.

3. Government Action

(1) On January 7, 2016, Tan Qiwei (“Tan”), the former Vice Chairman of Chongqing Standing Committee of People’s Congress, was sentenced by the Intermediate People’s Court of Hengshui City, Hebei Province to 12 years’ imprisonment for taking bribes, and his personal property in the amount of RMB 1 million (USD 152,129) was confiscated.

The court found that during his term of office from 1998 to 2014, Tan had accepted cash or other properties amounting to RMB 11.43 million (USD 1.73 million) either directly or indirectly through his wife, for providing illegal benefits to others in contracting projects, acquiring rights to publish advertisements, reducing land grant fees for developing real estate projects, etc. Tan was given a lighter sentence due to his confession and voluntary disgorgement of illegal gains.

(2) On January 12, 2016, Li Dongsheng (“Li”), the former Deputy Party Secretary and former Deputy Minister of China’s Ministry of Public Security, was sentenced to 15 years in prison by Tianjin No.2 Intermediate People’s Court for accepting bribes. His personal property in the amount of RMB 1 million (USD 152,129) was also confiscated.

Li was found to have abused his position by assisting others to gain promotions and to transfer household registrations (hukou), among other actions. Li also secured illegal benefits for certain individuals through his authority over other State officials. In exchange for such favors, Li solicited or directly accepted RMB 4.82 million (USD 733,263) in bribes. In addition, he accepted through his brother Li Fusheng RMB 17.16 million (USD 2.61 million), totaling RMB 21.98 million (USD 3.34 million) from 2008 to 2013. Li was given a lighter sentence due to his confession and voluntary disgorgement of illegal gains.

(3) It was reported on January 14, 2016 that Lu Haijun (“Lu”), the former Chairman of Beijing Energy Investment Holding Company (“Beijing Energy”), a state-owned enterprise, was sentenced to 11 years in prison for accepting bribes by Beijing No. 4 Intermediate People’s Court, with the confiscation of his personal property, which was valued at RMB 500,000 (USD 76,056).

Reportedly, during his term of office from 2010 to 2014, Lu was found to have sought illegal benefits for the Place Investment (Beijing) Co., Ltd. (“Place”) during the cooperation between Place and Beijing Energy. Lu has also accepted bribes amounting to RMB 10.66 million (USD 1.62 million) in the forms of cash and project payment though a third party company. Lu was given a lighter sentence due to his confession.

(4) On January 20, 2016, Yang Gang (“Yang”), the former Vice Chairman of the Committee of Economy of China People’s Political Consultative Conference, was sentenced by Beijing No.3 Intermediate People’s Court to 12 years in prison for taking bribes. Yang’s personal property valued at RMB 1 million (USD 152,129) was confiscated.

Yang was found during his term in office from 1998 to 2012 to have provided illegal assistance to individuals seeking illegitimate gain from distributing products, acquiring development projects, securing promotion, etc. In return, Yang has directly accepted bribes, directly or through his immediate relatives, exceeding RMB 13.79 million (USD 2.09 million) from 2008 to 2012. Yang was given a lighter sentence due to his confession and voluntary disgorgement of illegal gains.

4. Other

No developments.

5. China-related FCPA Action

No developments.