Compliance teams are grappling with China's proposed Anti-Cross-Border Corruption Law. This draft legislation, introduced in August 2026, mandates anti-corruption programs, limits cross-border evidence sharing, and may conflict with Western enforcement obligations. These challenges are real for practitioners trying to balance legal requirements without risking enforcement actions.
Here's what you and your team need to know.
Separate Anti-Bribery Training for Employees in China
Yes, separate training is necessary. The proposed law requires businesses with cross-border operations to provide compliance training tailored to employees in overseas branches and subsidiaries. A global anti-bribery course won't suffice.
Your training should ensure employees understand your organization's anti-corruption policies as they relate to Chinese legal standards. Tailor content to specific roles: procurement teams need different guidance than finance staff, and those dealing with public officials require instruction on Chinese standards.
Keep records of training completion and update training as risks and requirements evolve. Under Article 45 of the draft, Chinese authorities could demand you correct compliance deficiencies. Non-compliance could lead to operational suspension or business license revocation.
Transferring Investigation Files Outside China
This area is complex. Article 26 of the draft prohibits overseas organizations from conducting anti-corruption investigations in China without Chinese authority consent. It also restricts China-based entities from providing evidence to overseas parties.
The scope is unclear. Routine internal investigations may be exempt, but if your investigation becomes a regulatory proceeding or if US or UK authorities request evidence from China, you face tough choices.
For instance, if your US parent company investigates bribery allegations involving your Chinese subsidiary, you may need to cooperate with US authorities under the Foreign Corrupt Practices Act. However, transferring evidence from China could violate Chinese restrictions.
Your practical step: establish clear procedures for cross-border investigations now. Legal teams should review evidence requests, employee interviews, and material transfers involving China before proceeding. Don't assume your global investigation protocol will suffice.
Compliance with UK Bribery Act and FCPA
No, it's not enough. The proposed Chinese law introduces distinct compliance obligations that your current program may not meet.
Chapter 4 of the draft requires businesses with Chinese operations to maintain corporate integrity and compliance systems, including corruption risk assessments, internal reporting, financial controls, employee training, and due diligence on third parties. These requirements vary based on business size and operations, with no exemption for smaller companies.
Chinese authorities could enforce action for failing to maintain appropriate systems, even without proving bribery. This differs from Western anti-bribery laws.
Review your existing program against the proposed Chinese requirements. Assess if your risk assessments, due diligence, whistleblowing systems, and training programs suit your Chinese operations. Documentation proving effective implementation is crucial.
Handling Third-Party Due Diligence
This is a dual-compliance challenge. The proposed law emphasizes due diligence and supervision of business partners. However, China's Regulations on Industrial and Supply Chain Security, effective March 31, 2026, restrict certain information-gathering activities.
You're required to strengthen due diligence while facing restrictions on information collection. The requirements aren't necessarily incompatible, but much depends on circumstances and legislative interpretation.
Your priority: enhance ongoing oversight of third parties. Initial supplier screening isn't enough without continuous monitoring and controls. Structure due diligence processes with Chinese legal restrictions in mind. Investigating a supplier now requires assessing Chinese legal obligations.
Conflicts Between Chinese Law and US Subpoenas
The draft legislation allows countermeasures against foreign anti-corruption enforcement actions China deems improper. This adds regulatory uncertainty.
Don't assume procedures for UK, US, or EU requirements apply unchanged to Chinese operations. Where conflicts arise, you'll need structured processes to comply lawfully with each regime.
This isn't a problem solved by a standard procedure. You need legal counsel familiar with both Chinese law and the foreign enforcement regime. Document your decision-making process and communicate clearly with relevant authorities about your constraints.
Chinese restrictions don't remove obligations from other jurisdictions, but they require compliance strategies tailored to each jurisdiction, not a global program.
Should We Wait for the Final Version?
Don't wait. The legislation signals China's direction on corporate compliance, and core requirements are unlikely to vanish.
Start by reviewing your anti-corruption program against the proposed requirements. Establish procedures for cross-border investigations and information sharing. Ensure legal teams review requests involving China before transferring evidence or facilitating interviews. Update training to address Chinese legal requirements specifically.
Consider how the proposed law interacts with China's broader framework for foreign businesses, including data protection and evidence-sharing requirements. Compliance with local legislation should be central to your global risk management strategy.
Where to Go for More
Track developments in the draft legislation as it progresses. Consult legal counsel familiar with Chinese anti-corruption law and your industry risks. Review your existing compliance program now to make necessary changes before the law takes effect.
China's National People's Congress U.S. Department of Justice - FCPA
