Commercial bribery and liability

Corruption continues to be an obstacle to business in China and, internationally, is often seen as an integral part of Chinese business culture. The Chinese government has repeatedly vowed to eliminate corruption and, since 2005, has introduced a string of increasingly strict measures to tackle the trend. In November 2008 the Supreme People's Court and the Supreme People's Procuratorate jointly issued the Opinions on Issues concerning the Application of Law in the Handling of Criminal Cases of Commercial Bribery (Opinions). The Opinions further clarify several relevant articles of the PRC Criminal Law, ascertain existing but vague legislative goals in accordance with recent developments, and provide more concise and clear rules to counter commercial bribery in certain heavily-regulated areas such as the sale of medicines and medical appliances, education, and government purchasing.

Criminal Liability for Official Bribery

The PRC Criminal Law differentiates between general commercial bribery and bribery involving state functionaries. According to Articles 385, 387, 389 and 391 to 393, such “official bribery” involves a person or unit giving money or property to a state organ, state-owned company or enterprise, or a state functionary, in return for illegitimate benefit. This definition has been further clarified as follows: