Draft law seeks to deepen cooperation and regulate transnational businesses

Chinese lawmakers started reviewing on Tuesday a draft law aimed at combating cross-border corruption as part of a broader initiative to strengthen legal tools for repatriating fugitives, recovering assets and addressing corruption cases with international cooperation.

The draft was submitted for its first reading to the ongoing session of the Standing Committee of the National People's Congress, China's top legislature.

With six chapters and 47 articles, the draft outlines the principles, scope and key positions underpinning China's efforts to tackle cross-border corruption. It defines the operational mechanisms and responsibilities of relevant departments, calling for stronger case handling and international cooperation.

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The draft also clarifies the obligations of enterprises regarding integrity and compliance, and specifies legal liabilities for violations. Specific provisions included in the draft are currently under review and have not been made public.

Liu Jinguo, head of the National Commission of Supervision, who introduced the draft to lawmakers on Tuesday, said the legislation involves strategic implementation of the central leadership's plans to fight cross-border corruption.

It serves as a vital step toward establishing a comprehensive legal framework for addressing foreign-related corruption issues, he said.

Liu emphasized that making such a law is of great importance in filling the legislative gap in China's cross-border anti-corruption framework, improving the foreign-related anti-corruption legal system, and advancing legislative efforts against cross-border corruption through the rule of law.

The legislation also highlights China's firm stance against corruption, and is crucial for safeguarding national security and development interests, he added.

Liu noted that the draft law is a practical measure to regulate the healthy development of enterprises operating internationally and to foster a world-class business environment that is market-oriented, law-based and internationalized.

China is a major trading partner for more than 160 countries and regions, and it has signed Belt and Road cooperation documents with more than 150 countries and over 30 international organizations.

With more than 50,000 Chinese enterprises operating overseas, the scale of overseas assets is rapidly expanding, according to a statement released on Tuesday by the National Commission of Supervision. In this context, building a clean, integrity-based business environment is critical for expanding China's trade footprint, supporting Chinese companies amid global competition and advancing the Belt and Road Initiative, the statement said.

Liu said that by clarifying the compliance obligations of cross-border enterprises and enhancing regulatory oversight, the legislation helps to guide overseas Chinese businesses to operate legally, compliantly, and with integrity.

He acknowledged the complexity and challenges of the anti-corruption battle, noting that corrupt actors are employing increasingly sophisticated and concealed methods, and that the cross-border nature of corruption is intensifying, with domestic and offshore corruption becoming more interconnected.

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Liu said it is necessary to codify experiences and practices developed in the cross-border corruption battle since the 18th National Congress of the Communist Party of China in 2012, considering that the current rules in this regard are dispersed across various laws, with no systematic procedures for critical issues such as sharing case leads, reporting corruption, collaborating with foreign authorities on investigations and prosecutions, or tracking fugitives and recovering assets.

Zhang Lei, a professor of law at Beijing Normal University, underscored the importance of this legislative effort. "It clearly shows that China's commitment to combating corruption is steadfast and unwavering," Zhang said.

The drafting of the law will enrich legal tools available for addressing foreign-related corruption cases and further fostering international cooperation, he added.

Contact the writers at caoyin@chinadaily.com.cn