China Cracks Down Hard on Corruption

Law firm Sheppard Mullin looks at the Chinese government’s efforts to clean up corruption throughout the country and issues a warning to foreign companies doing business in China:

“In a June 2011 report issued by the People’s Bank of China (and as prepared by the China Academy of Social Sciences) the PRC government found 18,000 Party and government officials fled the country since 1990 with over US$120 billion in government funds missing. The leadership has had significant challenges in stamping out corruption at multiple levels. Foreign companies should be aware of these efforts in dealings with officials and management of state-owned enterprises.On February 28, 2012, the Ministry of Supervision reported that 36,000 government officials were punished for violating laws and regulations in 2011. The MOS found that 8,500 individuals were found guilty of embezzlement and bribery…”

Read the full update, China Corruption & White Collar Crimes Watch: China Strengthens Supervision Over Civil Servants, Sheppard Mullin Richter & Hampton LLP»