The first edition of the China Regulatory Enforcement Quarterly is now available.
During the fourth quarter of 2014, we saw a continued high level of regulatory enforcement by PRC authorities in the life sciences, automobile, media and advertising, and computer and information technology industries. President Xi Jinping’s anti-graft campaign resulted in the arrest of several high-profile officials, including the formal arrest of Zhou Yongkang, the former Domestic Security Chief of China and Politburo Standing Committee member, as well as an investigation against Ling Jihua, ex-President Hu Jintao’s top aide.
As a prelude, the Chinese government also introduced draft amendments to its anti-corruption laws, signed further information-sharing agreements with several other countries, and agreed to structurally enhance its investigative capacity to further combat corruption moving forward:
- The Central Committee of the Communist Party agreed to establish a separate anti-corruption bureau to better streamline and organize anti-corruption crackdowns across the country.
- First extensive draft amendments to the anti-corruption and anti-bribery provisions of the PRC Criminal Law were proposed to bring about broader coverage to punish corruption and bribery.
- 21 APEC countries, including the United States and China, agreed to an information-sharing initiative called the Network of Anti-Corruption Authorities and Law Enforcement Agencies (ACT-NET), which strengthens enforcement and collaboration of cross-border anti-corruption enforcement actions.
PRC authorities’ active involvement in this space has precipitated further communications with overseas regulators, including those of the United States. We do not view this as temporary or an anomaly for Q4 2014.