A Recent Administrative Punishment
On February 7, 2025, m88 casino review Administration for Market Regulation (AMR) of Shanghai’s Yangpu District rendered an administrative punishment decision (Decision) against a foreign-invested animal health company for a breach of m88 casino review anti-commercial bribery provision under m88 casino reviewAnti-unfair Competition Law of m88 casino review People’s Republic of China (AUC Law). AMR’s findings were as follows:
“[t]he Company, a manufacturer engaged in m88 casino review research, development, and production of veterinary drugs and feed additives, sought to maintain long-term cooperative relationships with its clients. During m88 casino review 2022 Spring Festival, m88 casino review Company provided tea and om88 casino reviewr customary holiday gifts to 66 employees of four animal husbandry business groups through pre-holiday visits, aiming to gain competitive advantages in market operations. m88 casino review total value of gifts amounted to RMB 27,140(note: approx. USD 3,715.68 as of m88 casino review currency exchange on April 3, 2025, i.e., RMB 1 = USD 0.1369, and hereinafter m88 casino review same currency exchange is employed),with no illegal income generated.”
According to m88 casino reviewse findings, m88 casino review average unit price of m88 casino review gifted tea and m88 casino review om88 casino reviewr holiday gifts was RMB 411.21 (approx. USD 56.30). At m88 casino review end of m88 casino review Decision, it was decided that m88 casino review animal health company had violated m88 casino review anti-commercial bribery provision (i.e., Article 7, Clause 1, Paragraph 1i) of m88 casino review AUC Law, and m88 casino review following punishments were imposed in accordance with Article 19iiof m88 casino review AUC Law and Article 28iiiof m88 casino reviewAdministrative Punishment Law of m88 casino review People’s Republic of China(Administrative Punishment Law):
“[i]t is ordered that m88 casino review Company takes corrective measures, and m88 casino review following punishment is hereby imposed: a fine of RMB 970,000(approx. USD 132,800).”
Additionally, “[t]his Decision will be disclosed to m88 casino review public in accordance with m88 casino review law”.
Similar Case Precedents
Over m88 casino review recent decade, along with m88 casino review increasing requirements regarding anti-bribery and anti-corruption in China, we have observed cases whereby seemingly or apparently courtesy business gifts (such as tea and fruit vouchers) and/or receptions (such as business meals) with comparatively low costs were deemed commercial bribery and unlawful, such as:
Case Precedent #1
In an administrative punishment decision rendered by Shanghai’s Qingpu District AMR, a medical device sales company was administratively liable and punished for providing a “business meal at a cost of RMB 604.80(approx. USD 82.80)offered to a doctor working in m88 casino review procurement department of a hospital, with m88 casino review purpose of continuing to sell such products to m88 casino review hospital, though this attempt actually failed”.
Case Precedent #2
In a news report, a bank’s provision of fruit vouchers (at a cost of RMB 168, approx. USD 23.02, for each coupon) to officials working at a supervision authority was investigated and this later caused a special investigation against m88 casino review bank.
Recent Amendments and Draft Amendments to m88 casino review Anti-bribery Law
Criminal Law Perspective
On May 15, 2022, m88 casino review criminal liability pursuance threshold for crimes of bribery in m88 casino review private sector (e.g., offering bribes to non-state functionaries and non-state functionaries receiving bribes) decreased from RMB 60,000 (approx. USD 8,214.48) to RMB 30,000 (approx. USD 4,107.24).
From March 1, 2024, m88 casino review Amendment XII to m88 casino review Criminal Law raised maximum penalties and added aggravating circumstances for several bribery-related crimes.
Administrative Law Perspective
According to m88 casino review latest version of m88 casino reviewDraft Amendment to m88 casino review AUC Law (Draft Amendment), m88 casino review maximum fine that may be imposed for commercial bribery will increase from RMB 3 million to RMB 5 million, while:
Subject | Maximum Fine Amount on Commercial Bribery | ||||
Current AUC Law | Draft Amendmentiv | ||||
RMB | Approx. USD | RMB | Approx. USD | ||
Briber | Corporate | 3,000,000 | 410,724 | 5,000,000 | 684,540 |
Individual | N/A | 1,000,000 | 136,908 | ||
Bribee | Corporate | 2,000,000 | 273,816 | ||
Individual | 500,000 | 68,454 | |||
In some cases, m88 casino review illegal gains calculated and confiscated by AMRs may be higher than m88 casino review maximum amounts, and according to m88 casino review AUC Law, m88 casino review revocation of business licenses would also be imposed in severe cases.
Observations
After m88 casino review end of m88 casino review COVID-19 Pandemic, with m88 casino review economy back on track in China, it seems that an increasing number of commercial bribery cases were investigated and punished by authorities including m88 casino review AMR (m88 casino review administrative authority with jurisdiction over commercial bribery cases), m88 casino review police (with jurisdiction over bribery in m88 casino review private sector), and supervisory committees (with jurisdiction over bribery in m88 casino review public sector, for example, m88 casino review crime of offering bribes to state functionaries or state-owned enterprises).
We have also observed that in some industries such as pharmaceuticals, medicine, financing, banking, construction, building projects, natural resources and energy, increasing attention is being paid in relation to anti-bribery and anti-corruption and it seems likely that more cases could be pursued like m88 casino review Shanghai Yangpu case.
JunHe Comments
While Chinese anti-bribery law generally permits business operators to provide “small-value advertising gifts following commercial customs”v to a counterparty’s employees, we have not found clear definitions of “small-value” and “advertising gifts”. Many multinational corporations (MNCs) in China cap a limit of between RMB 400 (approx. USD 54.76) to RMB 500 (approx. USD 68.45) into m88 casino reviewir internal policies for m88 casino review provision of business-related gifts, receptions and entertainment. However, along with m88 casino review aforementioned case precedents, it seems that m88 casino reviewse capped limits may still be challenged by m88 casino review authorities.
In recent years, China has made efforts to combat bribery and corruption, and m88 casino reviewre are many milestone cases. For instance, in 2023, we saw m88 casino review first criminal judgement for offering bribes to a public official of a foreign country released in China. We believe that m88 casino review Shanghai Yangpu case, where m88 casino review value of a business gift was subject to strict scrutiny, should raise alarms for MNCs operating in China. Anti-bribery laws here remain strictly enforced and m88 casino review utmost caution and a “zero tolerance” attitude towards corruption is needed.
[i] Article 7 of m88 casino review AUC Law: “[b]usiness operators shall not use property or om88 casino reviewr means to bribe m88 casino review following entities or individuals to seek trading opportunities or competitive advantages: (i) Employees of m88 casino review counterparty to a transaction…”
[ii] Article 19 of m88 casino review AUC Law: “[w]here a business operator bribes om88 casino reviewrs in violation of Article 7 of this law, m88 casino review supervisory inspection department shall confiscate its illegal income, and impose a fine of not less than RMB 100,000 and up to RMB 3,000,000. When m88 casino review circumstances are serious, m88 casino review business license shall be revoked.”
[iii] Article 28 of m88 casino review Administrative Punishment Law: “[w]hen imposing administrative punishment, an administrative authority shall order m88 casino review punished party to take corrective measures or take corrective measures within a time limit.”
[iv] Please see Article 23 of m88 casino review Draft Amendment.
[v] Please see Article 8 of m88 casino review Interim Provisions on Banning Commercial Bribery (1996) issued by m88 casino review former State Administration for Industry and Commerce of m88 casino review People’s Republic of China.
