China, International Business, and the Criminal Law

Abstract

The practice of commercial law cannot be conducted without reference to the risks presented by activities that may incur criminal liability. In many jurisdictions, breaches of the relevant company law and securities laws regimes involve the possibility of criminal liability. In China, rapid economic growth has coincided with an increase in prosecutions for financial crimes and the creation of new offences. White collar crimes, which include securities offences, fraud, false bankruptcy, stealing state secrets, stealing business secrets, bribery and numerous other possible criminal acts, may be subject to punitive criminal penalties, particularly when they involve corruption and the payment or receipt of bribes. Several well-publicized cases in China involving the prosecution and conviction of foreign nationals on charges relating to their business activities have highlighted the risk of criminal prosecution. The purpose of this article is to examine the legal handling of a number of recent criminal cases involving foreign businesses and businessmen. It will then consider what, if any, conclusions can be drawn in relation to the interactions between foreign business, politics and the judicial system in China.

Keywords: China, Chinese law, Chinese criminal law, Chinese courts, Chinese judicial system, Chinese politics, business secrets, trade secrets, State secrets, Australian nationals, bribery

JEL Classification: K10, K14, K22, K30, K33