With this new law, multinationals have even more things to worry about with respect to avoiding actions that could be interpreted as corruption.
China has joined a growing number of countries that are implementing new criminal laws to prohibit payment of bribes to foreign officials. In doing so, China is seeking to encourage good behavior among the growing number of Chinese companies doing business overseas.
On February 25, 2011, the Standing Committee of the National People’s Congress passed the Eighth Amendment to the PRC Criminal Law (the “Eighth Amendment”), which took effect on May 1, 2011. Article 29 of the Eighth Amendment criminalizes, for the first time under PRC law, paying bribes to foreign government officials and to officials of international public organizations (the “Foreign Bribery Provision”). The Foreign Bribery Provision brings China’s anticorruption laws into closer alignment with those in other countries, most notably the United States Foreign Corrupt Practices Act (“FCPA”).
Morrison Foerster's memo on the topic, quoted above, is available at:
http://bdti.mastertree.jp/f/niemdogc
(Click at the lower right where it says Download Asset.)
The Board Director Training Institute (BDTI) is a "public interest" nonprofit in Japan dedicated to training about directorship, corporate governance, and related management techniques. It is certified by the Japanese government to conduct these activities as a regulated nonprofit. Read a summary about BDTI here, and see a menu of its services for both corporations and investors here.