1. New laws or regulations

State level: No developments.

Local level (Beijing & Shanghai): No developments.

Communist Party Rules: No developments.

2. Upcoming laws or regulations

No developments.

3. Government Action

(1) It was reported on September 2, 2015 that Li Zhen (“Li”), the former Chairman and General Manager of Anhui Kangyuan Electric Group Co., Ltd. (the “Company”), was sentenced by the Intermediate People’s Court of Bengbu City, Anhui Province to 18 years in prison for duty embezzlement, bribery-taking, and fund misappropriation.

The court declared that during the period when Li was acting as the Director and General Manager of the Company, Li took advantage of his positions to provide assistance to others in several regards, including without limitation the enterprise operation, job switches and promotions. In return, Li illegally received cash and other properties from bribe-givers on nearly 200 occasions, including RMB 4.86 million (USD 765,866), HK$ 50,000 (USD 6,451) and USD 6,000, and shopping cards valuing RMB 47,000 (USD 7,406). Li was also found guilty of embezzling and appropriating funds.

Interestingly, while taking bribes, Li once donated an amount of RMB 50,000 (USD 7,879) to a hope primary school and another amount of RMB 70,000 (USD 11,031) to a village, all under the name of others and from the bribes Li accepted.

(2) On September 9, 2015, Jiang Yongqing (“Jiang”), the original Party Secretary of Liling City, Hunan Province was reported to be sentenced by the Intermediate People’s Court of Hengyang City to 18 years’ imprisonment plus confiscation of properties valuing RMB 3.1 million (USD 488,358) for corruption and bribery-taking. The amount of bribes is alleged to be around RMB 9.94 million (USD 1.56 million) in total.

Jiang was accused of taking advantage of his position to seek benefits for others in relation to real estate development, project contract, project price payment and employment, and accordingly accepted or solicited bribes together with Zhao Shanjun and Hu Bihua over RMB 12.25 million (USD 1.93 million) in return, including cash, valuable jade article, bank card, etc. Additionally, Jiang is also alleged to have embezzled public funds together with others amounting to RMB 370,000 (USD 58,287).

(3) On September 14, 2015, Guan Shouzhong (“Guan”), the former Deputy General Manager of Anhui Electric Power Corporation (the “Company”), a state-owned power corporation of China, was sentenced to 12 years in prison plus confiscation of personal properties valuing RMB 400,000 (USD 63,034) by the Intermediate People’s Court of Lu’an City, Anhui Province.

Guan, 59 years old now, successively acted as the Director of the Dispatch and Communication Center, the General Manager, the General Engineer and the Deputy General Manager of the Company. During the period when Guan took on the foregoing positions, Guan sought benefits for bribe-givers in several bidding projects, such as the electric communication project, the construction of power dispatching data network, the automation of transformer substations and development of the system software. In return, Guan illegally accepted several shopping cards and cash in the currency of RMB, USD and EUR. The total ill-gotten gains accepted by Guan amount to RMB 4.9 million (USD 772,170).

Considering Guan pleaded guilty to a better attitude and voluntarily confessed other key bribery facts that had not been mastered by the procuratorate and given that Guan’s relatives voluntarily surrendered bribes amounting to RMB 2.32 million (USD 365,599), Guan therefore was given a lighter sentence.

(4) On September 24, 2015, the Intermediate People’s Court of Hengshui City, Hebei Province held a hearing for Tan Qiwei (“Tan”), the former Deputy Director of the Standing Committee of National People’s Congress (“SCNPC”) in Chongqing City, Sichuan Province, who is prosecuted for taking bribes.

According to the procuratorate, Tan took advantage of his previous positions, such as the Deputy Mayor of Chongqing City and the Deputy Director of the SCNPC in Chongqing City, to provide assistance to a real estate company, an advertising company and a communications engineering company in several matters such as project contacting and reduction of land-transferring fee. In return, Tan directly or indirectly via his wife accepted properties valuing RMB 11.27 million (USD 1.76 million) and USD 20,000 in cash, totaling RMB 11.43 million (USD 1.79 million).

The court will make its judgement on a given date. 4. Other

No developments. 5. China-related FCPA Action

No developments.