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the new situation regarding Commercial Bribery Risks in China

Q1:  What’s the Chinese government’s attitude toward commercial bribery?


A:  After the wide influence of the Glaxosmithkline bribery scandal, Chinese regulators have not slowed down the efforts to ferret out corruption in the pharmaceutical sector and related industries by enacting new legislations and starting more investigations. In consideration of a series the political reforms in China, we have reasons to believe that a new era of anticorruption enforcement is coming in China and the Chinese government will spare no effort to anti-corrupt which will definitely including anti-commercial bribery.

Q2: Are there any new rules regarding anti-commercial bribery?


A: Yes, new rules issued by the National Health and Family Planning Commission of China recently stipulated that it would establish a record of medical device manufacturers, agencies and individuals charged with bribery by authorities, or sued, punished or otherwise investigated for bribery. Any organizations and individuals with a single negative record will be barred for two years from selling their products within the province at issue, while two negative records within five years could have such organizations and individuals barred from selling their products nationwide.

Q3: Did the Chinese government’s anti-commercial bribery action mainly focus on foreign company?


 A: No, the Chinese government’s focus is not limited to foreign companies it continues to pay close attention to domestic Chinese companies too.

Q4:Are there any good advices to foreign invested company in this circumstance to avoid any potential trouble?


A: Yes, for foreign invested company the internal controls and compliance policies shall be necessary, and the companies shall be pay close attention to this. In addition, companies should also remain vigilant in vetting its business partner, agent and third party vendors, as companies can easily become linked to an anticorruption investigation through a relationship with a third party.

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