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 October 6, 2015 that Wang Xizhong (“Wang”), the former Deputy General Secretary of the People’s Government of Luoyang City, Henan Province, had been sentenced by the Neiyang County People’s Court of Nanyang City, Henan Province to 8 years’ imprisonment for taking bribes. All of his illegal gains have been recovered.
The court found that while holding office, Wang unlawfully accepted cash in Renminbi and US dollars, as well as shopping cards and a camera, valued at nearly RMB 1.58 million (USD 248,850) in total. For those pecuniary gains, Wang unlawfully secured various benefits for third parties in the granting and facilitating of projects.
(2) On October 12, 2015, Xianning Intermediate People’s Court of Hubei Province issued a court verdict, sentencing Li Chuncheng (“Li”), the former Vice-Secretary of the Sichuan Province to 13 years imprisonment, with confiscation of personal property in the amount of RMB 1 million (USD 157,600).
Li, a member of the CPC, was found guilty of taking a significant number of bribes from 1999 to 2012 and breaching the ethical rules of the Chinese Communist Party. During his term of office, Li accepted bribes amounting to RMB 39.79 million (USD 6.27 million), and sought illegal benefits for bribe-givers, causing the losses of public funds exceeding RMB 3 million (USD 472,500). Li was the first provincial level officer who was put under investigation since the 18th CPC National Congress. Li was given a lighter sentence because of his confession and his return of illegal gains.
(3) On October 12, 2015, Jiang Jiemin (“Jiang”), the former Chief of State Owned Asset Supervision and Management Commission of the State Council, was sentenced to 16 years’ imprisonment by Hanjiang Intermediate People’s Court of Hubei Province, and his personal property valued at RMB 1 million (USD USD 157,600) was confiscated for taking bribes, abuse of power, and for possessing a large amount of assets from unidentified sources.
During his term of office from 2004 through 2013, Jiang had been appointed, successively, as the Vice-General Manager, General Manager, Director, Chairman of the board, and Party Secretary of Petro China Company Limited, a state-owned enterprise. While in office, Jiang was found to have received, for himself and for his close family members, unlawful benefits in the aggregate amount of RMB 14 million (USD 2.2 million). In return, Jiang was found to have procured favors, unlawful pecuniary interests, and job promotions for various third parties, and the court found that the amount of personal assets of Jiang and his family members was largely disproportionate to Jiang’s earnings throughout the alleged period. Jiang and his family members were unable to provide a rational basis for the wealth. Jiang was given a lighter sentence due to his confession and return of illegal gains.
(4) On October 13, 2015, Wang Yongchun (“Wang”), the former Deputy General Manager of China National Petroleum Corporation, was sentenced to 20 years in prison for taking bribes, possessing a large amount of assets from unidentified sources and abuse of power by the Intermediate People’s Court of Xiangyang City, Hubei Province, with confiscation of personal property worth RMB 2 million (USD 315,000).
Wang was found guilty of seeking illegal benefits in oilfield development, project contracts, job promotion, position adjustment, business operation, etc. for third parties in exchange of bribes of RMB 42.45 million (USD 6.68 million) received from 67 entities and individuals. Wang was given a lighter sentence due to his confession and the return of illegal gains.
(5) It was reported on October 27, 2015 that Zhang Xiaopu (“Zhang”), the former Party Secretary and Deputy Chief of Liaoning Development and Reform Commission and former Deputy Chief of the Provincial Committee of Population, Resources and Environment, was sentenced to 15 years in prison for embezzlement and accepting bribes by the Intermediate People’s Court of Benxi City, Liaoning Province.
Zhang was found guilty of taking bribes, individually or together with others, in an amount up to nearly RMB 10 million (USD 1.575 million) during his term of office from 2011 to 2014. In return, he assisted bribe-givers in obtaining governmental subsidies, winning governmental tenders, etc. The court also made the judgement to confiscate personal property in the amount of RMB 2.4 million (USD 378,000).
5. China-related FCPA Action