China plans to amend its draft law on cross-border anti-corruption in a move that it says will assist in tracking down fugitives, recovering illicit assets and handling foreign-related corruption cases. It is believed the move also be seen as a means of restricting capital outflow.
The law was submitted on Tuesday for its first review during the 24th session of the Standing Committee of the 14th National People’s Congress (NPC).
According to a Xinhua News Agency report, the draft consists of six chapters and 47 articles. Its main contents clarify the principles, scope and positions of China’s cross-border anti-corruption efforts; specify working mechanisms and responsibilities; strengthen case handling and international cooperation; define corporate integrity compliance obligations; and clarify legal liabilities.
Reports state that formulating the cross-border anti-corruption law is an important measure under the central authorities’ decision and deployment on cross-border corruption governance, accelerating the formation of a systematically complete anti-corruption foreign-related legal framework. It is also seen as an “urgent necessity” to strengthen China’s clear anti-corruption stance and safeguard national security and development interests.
The reports further point out that the legislation serves as a legal “toolbox” for tracking down fugitives, recovering illicit assets and handling foreign-related corruption cases, representing an innovative measure to enhance cross-border anti-corruption capabilities.
Although the full text of the draft and its official release date have not yet been announced, the Cross-Border Anti-Corruption Law was included as early as 2023 in the legislative plan of the Standing Committee of the 14th NPC as a draft law relatively mature for deliberation during the current term.
Mainland Chinese media outlet Caixin previously quoted several scholars familiar with the drafting process as saying that the law was drafted by the Central Commission for Discipline Inspection (CCDI) and the National Supervisory Commission (NSC). It mainly targets compliance management and jurisdictional procedures for overseas branches of Chinese enterprises as well as branches established in China by foreign companies.
Furthermore, the law includes provisions on cross-border asset recovery and corruption prosecution, functioning as a preventive legislation.
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