China’s draft cross-border anti-corruption law challenges perceptions of impunity overseas: expert
A draft law on combating cross-border corruption is set to be submitted for a second reading at the 25th session of the Standing Committee of the 14th National People's Congress, with proposed revisions including stronger protections for state secrets and trade secrets. The legislation is expected to help dispel the illusion that fugitives who flee overseas are beyond the reach of the law, an expert said.
An illustration depicts a Chinese law enforcement official pursuing a fugitive who has fled overseas with illicit assets. (Photo: VCG)
Huang Haihua, spokesperson for the Legislative Affairs Commission of the NPC Standing Committee, made the remarks at a press conference, introducing the proposed revisions to the draft law.
The draft law was first reviewed at the 24th session of the NPC Standing Committee in August. Comprising six chapters and 47 articles, it sets out the scope of China's efforts to combat cross-border corruption and the principles and policy positions guiding them, establishes relevant working mechanisms and responsibilities; strengthens case handling and international cooperation; clarifies corporate integrity and compliance obligations; and specifies legal liabilities, according to the China News Service.
During the public consultation period, the draft received 1,263 suggestions from 268 individuals through the NPC website, 35 suggestions from 14 NPC deputies through the deputies' online platform, and more than 1,000 suggestions from 11 community-level legislative outreach offices. Five letters from members of the public were also received.
The suggestions mainly concerned improving the draft's legislative purposes and principles, strengthening coordination mechanisms, refining case-handling procedures, protecting trade secrets, personal privacy and personal information, and enhancing protections for whistleblowers.
Huang outlined three major proposed revisions based on the feedback. First, the proposed revisions would further specify the principles guiding China's efforts to combat cross-border corruption, making clear that such efforts should adhere to a holistic approach to national security, strictly comply with the Constitution and laws, follow statutory procedures, and respect and protect human rights.
Second, they would add provisions to strengthen the protection of state secrets, work-related confidential information, trade secrets, personal information and personal privacy.
Third, they would clarify that domestic enterprises engaged in cross-border business should establish integrity and compliance departments or assign personnel to these functions, taking into account their size, business scope and risk management needs.
As proceeds of corruption are increasingly transferred overseas and concealed through offshore companies, cross-border trusts and layers of shell companies, tracing the flow of illicit funds often requires coordination among multiple government departments and jurisdictions.
This presents new challenges for anti-corruption efforts, as corrupt practices are becoming increasingly transnational while the legal provisions and procedures for addressing them remain scattered across different laws and departmental regulations. It is against this backdrop that the draft law has entered the legislative process. The forthcoming second reading will mark another step in the legislative process, following its initial review in August, Peng Xinlin, a professor at Beijing Normal University and executive council member of the China Against Corruption Law Association, said.
Many provisions in the draft establish legal principles and requirements for the first time, Peng said.
These include defining cross-border corruption at the legislative level, specifically stipulating the integrity and compliance obligations of enterprises engaged in cross-border business in a dedicated chapter, and establishing a national mechanism for combating cross-border corruption, Peng said.
However, the draft remains under deliberation, and some issues require further consideration in the subsequent legislative process, he noted. Cross-border corruption involves different legal systems, judicial jurisdictions and international cooperation mechanisms, and domestic legislation alone cannot eliminate all practical obstacles.
"Dedicated legislation at least means that governance tools previously scattered across different departments and institutional arrangements are expected to be brought under a more systematic legal framework, dispelling the illusion that fugitives who flee overseas are beyond the reach of the law," Peng said.