Huanqiu reports the law was passed on the 6th at the 25th session of the 14th NPC Standing Committee. The draft was first submitted on August 25 this year and went to a second reading on November 2; the vote count and effective date were not given, though the law takes effect on promulgation.

Structure of the law

The stated aims are to prevent and punish cross-border corruption, deepen international anti-corruption cooperation, protect national sovereignty, security and development interests, and help build a fair and reasonable global anti-corruption governance system. The report said a decision of the Third Plenary Session of the 20th Central Committee had called for the law.

It is divided into parts on mechanisms and duties, case handling and international cooperation, integrity compliance and legal liability. The national mechanism is led by the National Supervisory Commission with foreign affairs, public security, justice, finance, commerce, anti-money-laundering, audit, state assets, finance and securities, and cyberspace authorities sharing information. The second draft expanded the aims and principles and added the holistic national security outlook.

Corporate duties and expert views

Huanqiu says companies operating across borders must build anti-corruption compliance systems matching their scale and risk. The report also noted that Reuters pointed to stronger confidentiality requirements and corporate compliance duties.

Huo Zhengxin of China University of Political Science and Law called the legislation timely because foreign elements in corruption are growing, adding that cooperation depends on treaties, international law and joint effort. Zhang Xixian of the Central Party School said the law places corporate compliance, risk monitoring, countermeasures and case handling in one framework, balancing prevention and punishment. Reactions from foreign governments and companies were not reported and cannot be confirmed.