Chinese state-owned enterprises are establishing institutional compliance systems for the first time, a response to President Xi Jinping’s new anti-bribery guidelines, according to the Financial Times.
China’s State Assets Supervision and Administration Commission, the SOE regulator, has selected a group of state-run companies including China Mobile, Dongfang Electric, China Merchants Bank, China Railway and China National Petroleum Corporation to set up the systems. They were chosen because they operate in key industries and have operations abroad, according to Chinese state media.
“Sasac is encouraging some of the key SOEs to build stronger compliance systems within their own organizations, and these systems are to be used as examples for other SOEs to follow,” said Simon Hui, a partner at the Shanghai office of law firm Baker McKenzie.
The regulator’s move extends President Xi’s wide-ranging anti-corruption campaign, which has ensnared thousands of Communist party officials. The new regulations, which went into effect on January 1, will tighten restrictions on commercial bribery.