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
3. Government Action
(1) It was reported on May 6, 2016 that Wang Tianchao (“Wang”), the former President of Yunnan First People’s Hospital, was prosecuted by Pu’er Municipal People’s Procuratorate of Yunnan Province for bribery. Yunnan Commission for Discipline Inspection reported this case as “a typical case of corruption with an adverse impact for the health sector”. The total amount involved in this case is up to RMB 129 million (USD 19.62 million).
The prosecutor asserted that from 2004 to 2014, Wang obtained improper benefits including RMB 45 million (USD 6.84 million) in cash, 100 units of real estate together with 100 parking spaces valued in the aggregate at RMB 84 million (USD 12.78 million) in exchange for abusing his position to seek illegal benefits for bribe-givers in connection with construction projects, medical equipment, medicine procurement, and the appointment of personnel.
(2) On May 17, 2016, Xu Liming (“Xu”), the former Director of Guangxi Zhuang Autonomous Region People’s Government Guangzhou Office was sentenced by the Intermediate People’s Court of Hechi City, Guangxi to 10 years’ imprisonment for accepting bribes, as well as confiscation of illegal proceeds of RMB 3.53 million (USD 537,151) and penalties of RMB 500,000 (USD 76,083).
During Xu’s term in office from 2004 to 2008, he abused his positions to seek illegal benefits for various entities and individuals in contracting projects, project payment settlement, investment attraction and job promotions. In return Xu received bribes up to RMB 3.78 million (USD 576,715). In light of Xu’s voluntary confession and return of the proceeds of his crimes, he was given a more lenient sentence.
(3) On May 23, 2016, Li Yunzhong (“Li”), the life sentence of the former Vice Secretary of Qujing Municipal Party Committee, Yunnan Province was affirmed by the Higher People’s Court of Yunan Province. Li had been found guilty of accepting bribes of more than RMB 40 million (USD 6.08 million). This case had received prominent attention from the Central Commission for Discipline Inspection because it involved abuse over a long span of time, very substantial sums of money, and a large number of people.
Li was accused of taking bribes of RMB 40.17 million (USD 6.11 million) in cash and 150 cartons of cigarettes valued at RMB 96,000 (USD 14,608) from dozens of individuals. In return he sought illegal benefits for them in contract projects and in the allocation of project funds. The ill-gotten gains were used by Li to purchase real estate and vehicles as well as for loan-sharking.
(4) It was reported on May 24, 2016 that Hong Jiaxiang (“Hong”), a former Member of the Standing Committee of Ningbo City Committee of the Communist Party and the former Head of the Publicity Department had been sentenced by the Intermediate People’s Court of Shaoxing City, Zhejiang Province to 11 years’ in prison and fined RMB 600,000 (USD 91,300) for bribe-taking.
The court found that during Hong’s term in office from 2006 to 2013, he took advantage of his various positions to seek benefits in the promotion of real estate projects, project planning approvals, and enterprise operation for selected entities and individuals. In return, Hong illegally received cash and properties from such persons through pre-declaration of dividends, distributions of profits, and the sale of properties at a relatively high price. These aggregated to RMB 8.34 million (USD 1.26 million). Hong was given a more lenient sentence due to his voluntary confession and his return of the proceeds in whole.
(5) On May 30, 2016, Huang Deyi (“Huang”), the former Deputy Mayor of Baise City, Guangxi Zhuang Autonomous Region, was sentenced by the Intermediate People’s Court of Hechi City, Guangxi to ten years and six months in prison for accepting bribes and abuse of power, plus fines of RMB 500,000 (USD 76,083).
Huang was found guilty of providing illegal assistance to others during his term of office from 2007 to September 2013 in exchange for bribes including RMB 3.9 million (USD 593,453), HKD 400,000 (USD 338,496) and 3 kilograms of gold.
5. China-related FCPA Action