1. New laws or regulations

State level: No developments.

Local level (Beijing & Shanghai): No developments.

Communist Party Rules:

(1) On April 27, 2015, the General Office of the Communist Party of China (“CPC”) promulgated the Nomination and Inspection Rules of Secretary and Deputy Secretary of Discipline Inspection Commission at Provincial (Autonomous Regions or Municipalities) Level (for Trial Implementation), Nomination and Inspection Rules of Leader and Deputy Leader of the Discipline Inspection Commission designated by Central Commission for Discipline Inspection (“CCDI”) (for Trial Implementation), and Nomination and Inspection Rules of Secretary and Deputy Secretary of the Enterprises under the Management of Central Government (for Trial Implementation) (collectively the “Rules”).

The Rules emphasize that candidates for discipline inspection leaders must be selected from among excellent cadres with outstanding performance in building the Party’s clean and honest style within or outside of the discipline inspection system. The Rules also detail the requirements and procedures for the selection of such leaders to ensure a solid discipline inspection team for the anti-corruption campaigns.

2. Upcoming laws or regulations

No developments.

3. Government Action

(1) On April 7, 2015, Ji Jianye (“Ji”), the former Mayor of Nanjing City, Jiangsu Province, was sentenced to 15 years imprisonment for taking bribes by the Intermediate People’s Court of Yantai City, Shandong Province plus confiscation of personal property totaling RMB 2 million (USD 321,602).

During his term of office from the end of 1999 to September, 2012, Ji reportedly accepted bribes exceeding RMB 11.32 million (USD 1.82 million) in the forms of cash, painting, vehicle, lower purchase price for real estate, and free fit-outs on 21 occasions from seven individuals. In exchange, he sought illegal benefits for bribe-givers in job promotion, project contracts, etc. Ji was given a lighter sentence due to his confession and return of illegal gains.

(2) On April 9, 2015, Liao Shaohua (“Liao”), the former Member of the Standing Committee of CPC Guizhou Provincial Committee and former Party Secretary of CPC Zunyi Municipal Committee, was sentenced by the Intermediate People’s Court of Xi’an City, Shanxi Province to 16 years in prison for taking bribes and abusing power.

Liao was charged with abusing his position to seek illegal benefits for 11 bribe-givers in exchange of bribes of up to RMB 13. 24 million (USD 2.12 million) and with having caused the state to suffer losses in financial funds of RMB 3.1 million (USD 498,484). Liao was given a lighter sentence due to his confession.

(3) On April 17, 2015, Chen Bohuai (“Chen”), the former Deputy Chairman of the Chinese People’s Political Consultative Conference (“CPPCC”) Hubei Committee, was sentenced to 17 years imprisonment by the Intermediate People’s Court of Fuzhou City, Fujian Province for abusing his power and taking bribes. His personal property valued at RMB 300,000 (USD 48,240) was confiscated.

Allegedly, during his term as the Deputy Chairman of CPPCC Hubei Committee and the Deputy Director-general of Hubei Agriculture Department, Chen sought personal gain by authorizing and approving the illegal transfer of state-owned land use rights owned by the subordinate entity to Hubei Agriculture Department for the purpose of profit-making business, which resulted in losses totaling RMB 610 million (USD 98.08 million) for the state. Meanwhile, Chen was also found guilty of taking advantage of his position to accept bribes from others amounting to RMB 2.83 million (USD 455,068).

(4) It was reported on April 28, 2015 that Liu Xueku (“Liu”), the former Director of Hebei Development and Reform Commission (“HDRC”), was sentenced by the Intermediate People’s Court of Handan City, Hebei Province to 18 years in prison plus confiscation of personal property up to RMB 1 million (USD 160,801) and a penalty of RMB 500,000 (USD 80,400) for taking bribes, holding large amounts of unidentified property and insider trading.

According to the court, Liu took advantage of his positions as Deputy Director of HDRC from 2004 to 2006 and then as the Director of HDRC from 2011 to 2013, seeking illegal benefits for Ma Jianguo in project contracting and settlement and for Jiang Xiaodong in applications for provincial key projects. In return, Liu, along with his wife and son, jointly and illegally accepted money and other properties from above individuals totaling RMB 11.14 million (USD 1.83 million). Reportedly, the property and expenses of Liu’s family have apparently exceeded the family’s total legitimate income. Liu was also found guilty of disclosing inside information to others for insider security trading.

(5) On April 29, 2015, Xu Biao (“Xu”), the former Deputy General Manager of Chendu Industry Investment Group Co., Ltd and the former Director of the Finance Bureau of Qingbaijiang District, Chengdu City, was sentenced to 12 years and 6 months imprisonment for accepting bribes by the Intermediate People’s Court of Chengdu, Sichuan Province.

Xu was found guilty of taking advantage of his position in order to seek illegal benefits for others as the exchange of bribes amounting to RMB 2.7 million (USD 434,163) during his term from 1998 to 2013 successively as officer of Finance Bureau of Qingbaijiang District and senior management of several Chengdu based state-owned enterprises. 4. Other

(1) On April 20, 2015, the Central Commission for Discipline Inspection of CPC published another 112 cases on its official website in relation to the violation of the Eight-Point Code. Published cases involve 28 provincial administrative regions plus Xinjiang Production and Construction Corps, State Tobacco Monopoly Administration and China National Offshore Oil Corporation. Typical issues arising from such cases are illegal allocation of allowances and subsidies, illegal gains of gifts and money, travels by public funds, extravagant funerals and weddings, illegal use of company’s vehicle, and entertainment using public funds, etc. Beijing, Guizhou, and Shaanxi rank as the 3 provincial regions with the most cases (8 cases respectively) published this time. 5. China-related FCPA Action

No developments.