Bribery & Corruption

Anyone doing business in China is likely to encounter or hear of corruption in one form or another. Historically, practices such as facilitation payments, bribes and giving and receiving expensive gifts in order to develop relationships were often regarded as a part of doing business. This is still the case in some areas, although the problems vary according to sector, type of business and region.

However, the general perception is that the situation is improving. Our advice to companies encountering corruption is simple – don’t get involved. Not only are there issues of business integrity to bear in mind, but it is also, of course, illegal.  Invariably corruption is related to lack of professionalism, transparency and control, all of which are damaging to long term business.  The Chinese Government is keen to crack down on corruption and penalties can be severe. In addition, under the Anti-Terrorism, Crime and Security Act 2001, UK companies and nationals can now be prosecuted in the UK for acts of bribery or other illegal activity committed wholly overseas.

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