Many overseas companies with active business interest in China are in danger of breaking Chinese legislation. With the growing trade escalation between the US and China, it becomes really important to maintain compliance in China. Professional Chinese business lawyers are of the opinion that the Chinese government will implement even more stringent restrictions especially on the US organizations active in China for not maintaining compliance. It is not that the foreign companies willingly avoid to pay attention to compliance, but it is the hard process of maintaining compliance in China that makes them reluctant.
The Report of The American Chamber of Commerce–
The American Chamber of Commerce (AmCham) in Shanghai recently released a report on how China’s personal data regulations affect foreign firms. The country’s data privacy regulatory framework falls mainly under the 2017 Cybersecurity Law and its associated standards and guidelines, as well as a litany of earlier sector-specific regulations, like the Commercial Banking Law. Foreign Corrupt Practices Act (FCPA) compliance remains a priority for companies.
Importance of Cultivating a Strong Compliance Culture in China–
Cultivating a robust compliance culture and a strong compliance tone from the top is paramount. Your most important first step to preventing China corruption compliance problems is to establish a strong anti-corruption policy that addresses both China’s anti-corruption laws and those of your home country. Under Chinese President Xi Jing Ping’s anti-corruption campaign, the enforcement has expanded to focus not only on governmental officials, but also on the business communities. Now Chinese procurators and judges now put more weight on penalizing the crime of bribery.
All the US companies must ensure compliance with a variety of laws designed to prevent bribery of foreign officials and other illicit activity, which is still viewed by many as an undesirable, but common, part of doing business in China. Any China corporate and compliance policy must take account of China’s Anti-trust Law. China’s Anti-trust law is relatively new but it is evolving rapidly and an important area for any China corporate and compliance policy. Therefore, it is important for companies to review their China compliance policies and procedures to ensure they are in the best position to prevent and manage these issues.