China has created a new agency with broadened investigatory authority to streamline anti-corruption efforts. On March 11, China’s legislature, the National People’s Congress (NPC), passed constitutional amendments that cemented the status of the National Supervisory Commission (NSC) in China’s legal framework.
The US Trade and Development Agency (USTDA) will launch 20 workshops with Chinese agencies over the next two years to engage and educate officials about regulatory issues and best practices, USTDA Director Leocadia Zak told business executives at a February 2 US-China Business Council (USCBC) lunch. She also addressed Asian Infrastructure Investment Bank (AIIB) financing, market access, and the effects of the anticorruption campaign on US businesses.
To tackle complex administrative licensing processes, US companies in China are refining their government affairs efforts to focus on transparency and communication challenges, as well as obstacles stemming from the anticorruption campaign. The US-China Business Council (USCBC) pinpointed several Chinese government affairs-related licensing issues during interviews with more than 30 member companies in fall 2015 to better understand how companies address them.
Modern tools like WeChat, the world’s largest instant messaging service, allow companies in China to communicate more efficiently, make quick internal decisions, and close sales on the go. However, embracing new communication technologies in China also presents new challenges for companies in maintaining compliance with US and Chinese anti-corruption legislation. As social media platforms like WeChat become the new standard for communication, it is becoming more difficult for managers to monitor conversations to spot possible violations of company policy.
Instill fear, strengthen the regulatory framework, and change the political culture—these are the three stages to fighting official corruption, according to Wang Qishan, secretary of the Central Commission for Discipline Inspection, China’s corruption watchdog. After a three-year crackdown and widespread investigations and prosecutions, the Chinese government has in recent months tightened the regulatory screws to deter official corruption.