Another One Bites the Dust as Chinese Officials Continue Anti-Corruption Spree

By Alexander Diamond

The CEO of China’s fourth largest steel producer is being investigated for violations of Chinese anti-corruption law. This pursuit of yet another industrial leader follows a massive crackdown on corruption by the CCDI (the CPC’s anti-corruption authorities) that has led to the arrest of some of China’s most powerful politicians, military officers, and industrialists. Although Chinese authorities have only pursued charges against one foreign citizen thus far, this domestic enforcement trend has significant implications for both Chinese and international businesses who can no longer rely on the long-accepted informal guanxi system of gift/favor giving to political allies. Time will tell if the increasingly powerful CCDI begins to consistently pursue charges against increasingly integrated U.S. businesses that are already subject to FCPA enforcement actions.