Chinese Companies in the Crosshairs: Significant Anticorruption and Antibribery Considerations Under the DOJ’s China Initiative
Intended to counter China’s perceived national security threats, the U.S. Department of Justice (DOJ) has launched its new "China Initiative," a task force that will probe China’s industrial espionage. The initiative will be implemented through significant strategies which include identifying and prioritizing Foreign Corrupt Practices Act (FCPA) lawsuits that involve Chinese businesses competing with U.S. companies. A heightened scrutiny on Chinese companies by the U.S., along with other countries, is expected.
More than ever, effective anti-bribery and corruption guidelines aimed towards FCPA compliance should be developed and maintained by these Chinese businesses.
In this LIVE Webcast, a panel of key thought leaders organized by The Knowledge Group will provide an overview to help you understand the critical elements of the new initiative and its potential effects on Chinese businesses. Speakers will also offer best practices in developing and implementing a robust anti-corruption compliance program in light of the recent updates and developments surrounding the initiative.
Key topics include:
- The “China Initiative” – An Overview
- Recent Updates and Developments
- Implications on Chinese Companies
- Risks and Pitfalls
- Best Compliance Practices
- Chinese government reaction should the China Initiative be broadly applied
- Connections to existing industrial policies (i.e. Made in China 2025) and regulatory policies (“Unreliable Entities”)
- Potential impacts to foreign MNCs operating in China and/or working with Chinese suppliers/partners
- Steps foreign MNCs can take now to understand threat exposure and mitigate risk
Ropes & Gray LLP
- Original China Initiative memo highlights theft of IP/trade secrets issues, but the one line near the end of the memo noted “Identify [FCPA] cases involving Chinese companies that compete with American businesses,” signaling the willingness of US DOJ to go after Chinese companies in this space, which is quite unusual. Does it set a precedent by explicitly using the FCPA as a tool to protect US companies from foreign competition? This actually goes against the main policy goals of the FCPA.
- Does the China Initiative hinder future cooperation between the two countries in combatting actual corruption?
- How far does jurisdiction expand beyond “issuers” of securities? This includes ADRs, using the Wire Act, etc.
- Previous FCPA cases against Chinese companies (as opposed to MNCs) are relatively rare – RINO and Keyuan are the only recent examples (and they are not so recent). But this can also be used against individuals (see, e.g., Patrick Ho case)
- Focus on companies with “emerging and foundational technologies”? What is expected of a Chinese companies’ ABAC program? Recent DOJ Corporate Enforcement Policy Guidance may help companies address this.
Zhong Lun Law Firm
- Macro analysis of trade tension between two giants at angles of politics, culture and law
- Not just Chinese companies, but also its senior management now are facing legal risks
- Change in thinking——that is what mostly needed by Chinese companies right now
- What actions the Chinese government may take to protect its own companies
Kent is a Senior Partner in Control Risks, Greater China and North Asia. He is responsible for Control Risks’ practices across mainland China, Hong Kong, Macau, Taiwan, the Koreas and Mongolia. He has worked in Asia since the early 1980s.
Kent has consulted with multi-national and Asian corporations on a range of risk and strategy issues; such as M&A and organic growth strategy, crisis management and operational business controls, and strategic and organizational development programs. Kent has particular expertise in the Asia-Pacific healthcare, food and beverage, and consumer products sectors.
Kent has a bachelor’s in English and a master’s in East Asian studies from the University of Minnesota. He also completed graduate studies in journalism and mass communication at the China Times Centre for Mass Media and Social Studies.
Kent is a Senior Partner in Control Risks, Greater China and North Asia. He is responsible for Control Risks’ practices …
Mimi Yang is a partner of Ropes & Gray LLP. Mimi has extensive experience in private securities litigation, U.S. DOJ and SEC enforcement matters, and internal investigations. In this context, she has represented companies, board committees, and individual officers and directors, and has conducted numerous internal corporate investigations and due diligence matters involving complex accounting and disclosure issues, whistleblower claims, trade secrets issues, and potential violations of the Foreign Corrupt Practices Act (FCPA) and other anti-corruption laws. Mimi regularly writes on topics involving trade secrets, presents on the topics involving trade secrets to companies in various industries, and is uniquely positioned to help Chinese and US companies navigate the new enforcement landscape (typified by the U.S. regulators’ recently announced China Initiative) given her background in criminal enforcement matters, civil litigation, and her native bilingual skills.
Mimi Yang is a partner of Ropes & Gray LLP. Mimi has extensive experience in private securities litigation, U.S. DOJ …
Mr. Gary Gao is the Partner and the Head of Compliance Team of Beijing Zhong Lun Law Firm. So far, Mr. Gao has practiced law for about 24 years, which makes him an experienced lawyer. Mr. Gary Gao was consecutively recommended in Corporate Investigation/Anti-bribery by Chambers Asia-Pacific 2019 and Chambers Asia-Pacific 2018. Besides, Mr. Gary Gao was honored as the 2019 “Band 1 Lawyer of Compliance” by LegalBand, the 2017 “Regulatory & Compliance Lawyer of the Year” by China Law & Practice and the 2016 “Client Choice Top 20 Lawyer” by ALB.
Mr. Gary Gao is the Partner and the Head of Compliance Team of Beijing Zhong Lun Law Firm. So far, …
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Method Of Presentation:
General knowledge of anticorruption and antibribery laws
NY Category of CLE Credit:
Areas of Professional Practice
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Founded in 1993, Zhong Lun is one of the largest law firms capable of providing a complete spectrum of legal services in China, with over 290 partners and more than 1900 professionals working in sixteen offices strategically located in Beijing, Shanghai, Shenzhen, Guangzhou, Wuhan, Chengdu, Chongqing, Qingdao, Hangzhou, Nanjing, Tokyo, Hong Kong, London, New York, Los Angeles and San Francisco.
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