China: Compliance

China's Supreme People's Court and Supreme People's Procuratorate have unified criminal prosecution standards for bribery involving non-state personnel with those for state officials, dramatically lowering thresholds and increasing penalties. This landmark judicial interpretation eliminates the historical "dual-track" system that treated private sector corruption more leniently, fundamentally reshaping compliance obligations for foreign and domestic enterprises operating in China.

Trust companies face increasing litigation over suitability obligations as courts scrutinize whether financial institutions properly assess investor risk tolerance, understand product risks...

China's State Council has issued new regulations on countering foreign extraterritorial jurisdiction, while regional courts and regulatory bodies advance bankruptcy and debt restructuring frameworks. Key developments include the establishment of Xiamen's out-of-court restructuring service center, adjustments to cross-border lending rules, and expanded pilot programs for mandatory liquidation procedures across seven provinces.