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) On August 2, 2016, Hu Xuefan (“Hu”), the former Director of Tourism Bureau of Anhui Province, was sentenced by the Intermediate People’s Court of Anqing Municipal, Anhui Province to twelve (12) years in prison for taking bribes, with monetary fines of RMB 4 million (USD 598,784) and confiscation of illegal gains of an additional RMB 4.6 million (USD 688,602).
Hu was found to have taken advantage of his position from 1999 to 2014, seeking illegal benefits for over 20 legal entities and individuals through the allocation of special tourism funds, ratings for scenic spots, job adjustments and promotions, etc., and either accepted or solicited bribes in the forms of cash, shopping cards and gold bars, individually or together with his family, amounting to RMB 4.6 million (USD 688,602).
(2) On August 8, 2016, Jian Rujian (“Jian”), the former Deputy Inspector of the Local Tax Bureau of Guangzhou Municipal, Guangdong Province, was sentenced to 13 years imprisonment for accepting and providing bribes by Guangzhou Intermediate People’s Court, with fines of RMB 3 million (USD 449,088).
Jian was accused of offering help to various enterprises during tax inspection periods from 2005 to 2013, and accepting illegal proceeds including multiple real estate properties, calligraphy and paintings, cash and shopping cards aggregating more than RMB 9.54 million (USD 1.42 million).
(3) It was reported on August 15, 2016 that Zhou Yao (“Zhou”), the former Chief of the Management Commitment of Lu’an Economic & Technological Development Area of Anhui Province, was sentenced by the Intermediate People’s Court of Chuzhou Municipal, Anhu to 11.5 years in prison for taking bribes and abusing power. Zhou was also fined RMB 1.6 million (USD 239,513).
Reportedly, during his term of office from 2003 to 2013 Zhou accepted bribes valued at RMB 5.61 million (USD 839,795) in exchange for seeking illegal benefits in land grant price refunds, compensation for demolition, adjustments of construction planning, etc. Zhou was also charged with abusing his power to refund land grant prices and pay additional demolition compensation to two companies, causing economic losses for the state of up to RMB 15.55 million (USD 2.24 million).
(4) On August 19, 2016, Ma Yong (“Ma”), the former Party Secretary of Yiyang Municipal, Hunan Province, was sentenced by the Intermediate People’s Court of Chenzhou Municipal, Hunan to 12 years in prison for accepting bribes totaling RMB 3.68 million (USD 550,881) and for abuse of power.
Ma’s case drew attention in China due to the publication of reports regarding his alleged interference with the judiciary. Ma allegedly accepted bribes of RMB 100,000 (USD 14,969) and a bar of gold valued at RMB 33,000 (USD 4,939) from Hu Shuangfu (“Hu”) from 2012 to 2013, and helped Hu’s two sons get light sentence for their crimes of intentional assault, which eventually caused the death of the victim, abusing the power of his office. In addition, during his term from 2007 to 2013, Ma was found to have received bribes including RMB 910,000 (USD 136,223), USD 123,000, HKD 380,000 (USD 48,992), ERU 10,000 (USD 11,169), 4.7 kilograms of gold, and three watches.
(5) On August 26, 2016, Liu Guosheng (“Liu”), the former Deputy Mayor of Heze Municipal, Shandong Province, was sentenced by the Intermediate People’s Court of Taian Municipal, Shandong to 8-years in prison for taking bribes. Liu was found guilty of illegally seeking benefits for bribe-givers in land grant formalities, the allocation of supporting funds, contracts for greening projects, and other arrangements on fifty occasions. In exchange, Liu accepted cash and shopping cards aggregating to RMB 2.1 million (USD 314,361). Liu was given a lighter sentenced due to his confession and return of illegitimate gains.
5. China-related FCPA Action