China’s Anti-Corruption Campaign Targeting Multinationals

Historically, bribe recipients have been the major target of China’s anti-corruption enforcement, but the emphasis has shifted to encompass the purveyors of bribes, according to a legal update from attorneys Kareena Teh and Fabian Roday from the Dechert law firm. Consequences for companies that are ensnared may include heavy fines and being shut out of bidding on contracts, and for executives, possible prison sentences. Specifically, and for about a year, Chinese authorities have been coming down hard on the life sciences industry, but other sectors are likely to become targets, especially when the businesses can be construed to have a direct effect on people’s safety and livelihood. The authors provide a four-step set of guidelines for reducing the risk of being becoming the target of an investigation or enforcement.