1. New laws or regulations

State level: No developments.

Local level (Beijing & Shanghai): No developments.

Communist Party Rules:

(1) On July 17, 2016, the Central Commission for Discipline Inspection issued the Accountability Regulations of the Communist Party of China (the “Regulations”). The Regulations specify the intra-Party accountability mechanism for the serious consequences caused by mistakes, negligence and even poor work performance or leadership. The possible punishment includes circulating a notice of criticism within certain scope of the Party, admonishing, position adjustment and disciplinary sanction. In addition, relevant officers will be held responsible for life, even after their job adjustment, promotion or retirement. The Regulations were approved by the Political Bureau of Communist Party of China Central Committee on June 28, 2016.

2. Upcoming laws or regulations

No developments.

3. Government Action

(1) On July 8, 2016, Wei Huaizhong (“Wei”), the former Deputy Minister of the Propaganda Department of Haidian District Party Committee, was sentenced to four years’ imprisonment for bribe-taking by Beijing No. 4 Intermediate People’s Court and was fined RMB 300,000 (USD 45,264).

From 2008 to 2011, Wei was responsible for handling local cultural affairs, during which period he took advantage of his position to assist three companies in applying for special funds from Cultural Development of Haidian District. As a consequence, these companies succeeded in obtaining the allocation of special funds of RMB 3.95 million (USD 595,983). In return, Wei accepted bribes amounting to RMB 1.38 million (USD 208,217) in the form of a commercial contract between one of the three company and a company controlled by one of his relatives. Wei was given a lighter sentence due to his repentance and the refund of illegal proceeds.

(2) It was reported on July 12, 2016, that Hou Duanmin (“Hou”), the former Secretary of the Party Committee of Jining Medical College (the “College”), was sentenced by the Intermediate People’s Court of Weifang City to 11 years in prison for bribe-taking, plus a fine of RMB 600,000 (USD 90,529).

The prosecutor accused Hou of being involved in 28 bribery events from 2002 to the end of 2014, during which period Hou accepted illegal proceeds over RMB 3.13 million (USD 472,260) in total. Originally, the amount of accepted bribes remained relatively low, but things changed soon after his assumption of duties at Jining Medical College, where he received a large number of kickbacks from drug sales to the related hospitals affiliated with the College. Together with his wife, the couple took 70% of the profits generated from such drug sales.

(3) On July 12, 2016, Ji Haiyi (“Ji”), the former Secretary of Party Committee of Sunhe County, Chaoyang District, Beijing was sentenced to life imprisonment by Beijing No. 3 Intermediate People’s Court for accepting bribes approaching RMB 60 million (USD 9.05 million).

During Ji’s term of office from 2005 to 2011, he took advantage of his position to assist several companies and individuals in project contracts, company operations, and compensation for demolition and relocation. In exchange, Ji, individually and jointly with others, accepted properties valuing over RMB 59.32 million (USD 8.95 million) in the form of cash and real property from 11 individuals.

(4) It was reported on July 14, 2016, that Liu Qingcheng (“Liu”), the former Principal of Jiangxi East China University of Technology, was sentenced to 15 years imprisonment for taking bribes by the Intermediate People’s Court of Ji’an City, Jiangxi Province, plus a fine of RMB 1 million (USD 150,881).

According to the prosecution, from December 2002 to May 2014, Liu took advantage of his position to seek illegal benefits for others in campus project bidding, project construction, job arrangement, equipment purchase, etc., and cumulatively accepted bribes exceeding RMB 8.7 million (USD 1.31 million). Liu said he would appeal against the judgment.

(5) On July 25, Guo Boxiong (“Guo”), the former Deputy Chairman of Central Military Commission, was sentenced to life in prison for accepting bribes by the Military Court, deprived of political rights for life and the rank of general, and all of his personal property was confiscated.

4. Other

No developments.

5. China-related FCPA Action