1. New law or regulation

State level: No developments.

Local level (Beijing & Shanghai): No developments.

Communist Party Rules: No developments.

2. Upcoming law or regulation

No developments.

3. Government Action

(1) It was reported on August 2, 2014 that Zou Heping (“Zou”), the former Deputy Chief of Transport Department of Hunan Province, was sentenced on July 29, 2014 by the Intermediate People’s Court of Changde City, Hunan Province to life imprisonment for accepting bribes.

Allegedly, Zou abused his position to extend favors to 16 entities and individuals involved in bidding for construction projects, insurance matters, and job arrangements. In exchange for such favors, Zou accepted either independently or in collaboration with his son, bribes amounting to RMB 21.47 million (USD 3.49 million).

(2) On August 8, 2014, Cao Pusheng (“Cao”), the former Chief of Grain Bureau of Nanyang City, Henan Province, was sentenced to 19 years’ imprisonment by the Intermediate People’s Court of Nanyang City for accepting bribes and embezzlement, with confiscation of personal property totaling RMB 1 million (USD 164,000).

Cao was charged with taking advantage of his position during 2004 to 2011 to seek illegal benefits for bribe-givers and with accepting bribes in excess of RMB 2.89 million (USD 470,431). Reportedly, Cao embezzled RMB 400,000 (USD 65,111) in 2008 by awarding business contracts for the manufacturing of rice packaging to his relatives. It was also reported that in March 2011, Cao paid RMB 4 million (USD 651,115) to Deng Long, who had blackmailed him with threats of disclosing his corruption during that year’s National People’s Congress (“NPC”) and the Chinese People’s Political Consultative Conference (“CPPCC”).

(3) It was reported on August 10, 2014 that Wang Teiniu (“Wang”), the former Deputy Secretary and Party Member of CPPCC Henan Provincial Committee, was sentenced to 11 years in prison by the People’s Court of Shancheng District, Hebi City, Henan Province, with confiscation of personal property valued at RMB 100,000 (USD 16,277).

Reportedly, Wang was found guilty of accepting bribes from one of his subordinates and from three construction companies, totaling RMB 1.21 million (USD 197,613) and USD 1,000 during his term in office from 2001 to 2008. In return, Wang sought illegal benefits for the bribe-givers in government-related projects, the issuance of a water safety certificate, and a construction-related lawsuit.

(4) On August 19, 2014, Earl Dun Cang (“Cang”), the former Deputy Chief of the NPC Standing Committee of Ordos, Inner Mongolia Autonomous Region, was sentenced by the Intermediate Railroad Transportation Court of Hohhot to life in prison with the confiscation of all personal property for taking bribes, embezzlement, and the holding a large amount of property from unidentified sources.

Cang was accused of accepting bribes from 2001 to 2013 amounting to RMB 20.53 million (USD 3.34 million) from 47 individuals and entities. In exchange, Cang abused his position by seeking illegal benefits for the bribe-givers in construction-related contracts, construction payment settlement, project approval, land grant approval, and job promotion. During his term in office from 2007 to 2011, Cang embezzled public funds totaling RMB 3.5 million (USD 569,726). In addition, Cang was unable to explain the sources of his personal property valued at RMB 715,000 (USD 116,386). Cang was given a lighter sentence due to his confession.

(5) On August 20, 2014, Wen Qingliang (“Wen”), the former Deputy Director of the Railroad Administration of Taiyuan City, Shanxi Province, was sentenced by the No. 2 Intermediate People’s Court of Beijing to death with a two-year reprieve, plus confiscation of all personal property.

Wen was found to have accepted, together with his mistress Zhong Hua, bribes exceeding RMB 20 million (USD 3.25 million) from six companies in the coal industry. In exchange, Wen granted favors to those companies with respect to the rail transportation of goods. Wen was given a light sentence due to his return of most of the illegal gains.

4. Other

No developments.

5. China-related FCPA Action

No developments.