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
3. Government Action
(1) On December 5, 2014, Zhang Xiaodong (“Zhang”), the former Party Secretary of Anyang City, Henan Province, was sentenced for taking bribes by the Intermediate People’s Court of Zhumadian City, Henan Province to life in prison plus confiscation of all personal property.
During his term from April 2003 to 2013, Zhang reportedly accepted bribes from 36 individuals totaling RMB 21.23 million (USD 3.42 million) and USD 10,000. In exchange, Zhang abused his position to provide illegal benefits to the bribe-givers in construction projects, enterprise development, and job arrangements. Zhang was given a lighter sentence due to his confession and his return of all illegal gains.
(2) The official website of the Central Commission for Disciplinary Inspection (“CCDI”) of the Communist Party of China (“CPC”) and the Ministry of Supervision (“MOS”) published a report on December 6, 2014 that Zhou Yongkang (“Zhou”), a former Member of the Standing Committee of Political Bureau of the CPC Central Committee and former Secretary of the Committee of Political Science and Law under the CPC Central Committee, has been expelled from the Party for accepting bribes, abuse of power, and disclosure of national secrets, and Zhou’s case has been transferred to judicial authorities. Separately on the same day, the Supreme People’s Procuratorate announced that Zhou has been arrested and was under investigation for suspected crimes.
Subsequently on December 31, 2014, the CCDI website announced that another ministry-level official, Ling Jihua, the former Deputy Chairman of the 12th Chinese People’s Political Consultative Conference and the former Director of the United Front Work Department, was under investigation for severe violation of discipline.
(3) On December 10, 2014, Zhang Xinhua (“Zhang”), the former General Manager of Baiyun Nong Gong Shang Co., Ltd. (“Baiyun Company”), a state-owned company in Guangzhou, was sentenced to death by the Intermediate People’s Court of Guangzhou City, Guangdong Province for taking bribes and embezzlement. Reportedly, the involved illegal money exceeded RMB 400 million (USD 65 million).
The investigation of Zhang began in June 2013 when he was removed from his post on suspicion of accepting bribes and embezzling more than RMB 340 million (USD 55 million). Allegedly, Zhang was charged with receiving bribes of up to RMB 56.8 million (USD 9.15 million) and HKD 7.3 million (USD 941,134) from June 1998 to May 2013. In exchange, Zhang assisted the bribe-givers with the transfer of state-owned land use rights and joint development rights. Zhang was also found guilty of embezzling state-owned assets exceeding RMB 280 million (USD 45.11 million) in the form of fabricated debts, underestimating assets, paying debts in-kind, etc. by using his own companies, which were named Guangtian and Xinyutian respectively. Zhang rejected the court’s verdict and is reported to be planning to appeal.
(4) On December 24, 2014, Zhang Shaofu (“Zhang”), the former Chief of the Standing Committee of Bayannur Municipal People’s Congress, Inner Mongolia Autonomous Region, was sentenced to death by the Intermediate People’s Court of Xilin Gol League for accepting bribes, with the confiscation of all personal property and illegal gains.
Reportedly, Zhang was found guilty of accepting during his term in office from 2001 to 2012 bribes totaling RMB 11.17 million (USD 1.79 million), and seeking illegal benefits from bribe-givers. Although Zhang confessed his crimes in the court and retuned all his illegal gains, the court determined that the involved illegal amount was so large that the sentence should not be reduced.
(5) On December 24, 2014, Cheng Mengren (“Cheng”), the former Director of Transportation Department of Guizhou Province, was sentenced to life in prison by the Intermediate People’s Court of Guiyang City, for taking bribes, with all personal property confiscated.
Cheng was found guilty of conspiring with his mistress, He Wen (“He”), who was also sentenced to life imprisonment, of illegally assisting 15 enterprises and individuals in obtaining construction projects. In return, Cheng received bribes amounting to RMB 18.04 million (USD 2.9 million) during his term in office from 2003 to 2011. Cheng was also charged with accepting properties valued at RMB 2.52 million (USD 406,058) for abusing his position to obtain illegal benefits for bribe-givers through the award of projects and the collection of construction payments. Both Cheng and He said they would appeal.
(1) According to a report published by CCDI and MOS on December 5, 2014, as of October 31, 2014, there have been 67,737 cases and 89,585 individuals have been investigated for violation of the Eight-point Code , among which 25,975 officials have been reported for violating CPC disciplinary rules. It was further reported that during 2014 at least 40 officials at the provincial and ministerial-level have been investigated for corruption or other severe violation of law and discipline, including 4 officials who were at the deputy state-level. This was said to evidence the strong determination of China to crackdown on corruption within the Party.
(2) On December 9, 2014, the official website of CCDI and MOS opened a special column to receive online reports for clues and other information relating to corrupt Party members and state functionaries who have fled or transferred ill-gotten properties abroad.
5. China-related FCPA Action