As part of our continued efforts to monitor the antibribery enforcement environment in the People’s Republic of China (PRC), our colleagues in Squire Sanders’ Shanghai office have graciously agreed to provide monthly updates of relevant developments in the PRC’s antibribery laws, regulations and government enforcement actions. The most recent developments are summarized below.

Enforcement Actions

On March 28, 2012, Wu Shundi (“Wu”), former deputy party secretary of Meilong Town, Minhang District, Shanghai was jailed for life by the Shanghai No. 1 Intermediate People’s Court following his conviction for taking bribes and embezzling money in an amount totaling over RMB 28 million (US$ 4.45 million). Between 2002-2003, as the chairman and general manager of a village-converted company, Shanghai Longxing (Group) Co., Ltd, Wu purportedly concealed more than RMB 3 million by claiming reimbursements for various fabricated expenses, including utility bills, rental payments, employee bonuses, and others. At the same time, Wu allegedly abused his power by aiding real estate developers to develop collectively-owned land in exchange for bribes.

New Laws or Regulations

Communist Party Rules: On March 26, 2012, Interpretation of the Application of Chinese Communist Party Disciplinary Regulations on Breach of Several Rules on Integrity of Leadership Members of State-Owned Enterprises (Circular Zhong Ji Fa (2012) No. 3) was released by CPC (Central Committee of the Communist Party of China) Central Commission for Discipline Inspection providing the rules for the application of punishments provided in the Communist Party Disciplinary Regulations (Circular Zhong Fa (2003) No. 18) on conduct in breach set out in the Several Rules on Integrity of Leadership Members of State-Owned Enterprises (Circular Zhong Ban Fa (2009) No. 26).

Other Developments

On March 11, 2012, Cao Jianming (“Cao”), procurator general of the Supreme People’s Procuratorate (“SPP”) said at an annual session of the National People’s Congress that the Procuratorate at all levels nation-wide should make greater efforts to intensify the punishment of commercial bribery and to establish an anti-corruption system among all levels of Procuratorates. Additionally, according to Cao’s speech, bribery prosecutions increased 6.2% last year compared to the previous year.