Companies doing business in the People's Republic of China (“PRC”) have yet another path to potential criminal liability. On February 25, 2011, the PRC legislature passed 49 amendments to the PRC Criminal Law. One such amendment – Amendment No. 8 of the PRC Criminal Law – criminalizes the payment of bribes to non-PRC government officials and to international public organizations (the “Amendment”). While the Amendment is brand new and no interpretive guidance has been issued, it appears to be the PRC's version of the United States Foreign Corrupt Practices Act (“FCPA”).

Overview of Pre-Existing PRC Anti-Bribery Law

The PRC currently has various laws prohibiting both commercial and official bribery.

Pre-Existing Commercial Anti-Bribery Law Two

PRC laws prohibit commercial bribery: (1) Article 8 of the PRC Anti-Unfair Competition Law (“AUCL”) and (2) Article 164 of the PRC Criminal Law.