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In the News: 3M Settles Bribery Charges in China Subsidiary; China Recognizes Data as Assets; and China Increases Controlling Shareholder Responsibility
August 30, 2023 | BY
Brian Chan3M pays fine to settle bribery charges on its China subsidiary; China recognizes data as an asset in financial statements; and China revises company law to increase controlling shareholder responsibility in companies.
3M Settles Bribery Charges in China Subsidiary With Huge Penalty
American conglomerate 3M has settled U.S. anti-bribery law charges in its China subsidiary, according to Reuters. The board of 3M has agreed to pay more than $6.5 million to resolve the U.S. charges of the Foreign Corrupt Practices Act violations (FCPA) related to its subsidiary in China. The SEC alleged that the subsidiary provided Chinese government officials with overseas travel to induce them to purchase 3M products, according to an SEC filing. Employees at the 3M subsidiary also colluded with local travel agencies to make such arrangements, paying nearly $1 million to fund at least 24 trips for Chinese government officials that included guided tours, shopping visits, day trips and other leisure activities, the filing alleged.
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