China’s new draft law on combating cross-border corruption is as much a weapon against foreign interference as it is a tool against illicit financial flows, analysts say.
The draft sets out ways to block extraterritorial investigations and to retaliate against foreign anti-corruption enforcement, drawing a firm legal boundary against foreign jurisdictions while establishing its own mechanism to police overseas assets.
In doing so, legal specialists warn, Beijing is also creating a double-edged regulatory framework that will force multinationals and Chinese businesses operating in regional hubs such as Singapore to navigate data compliance dilemmas.
The draft Anti-Cross-Border Corruption Law was submitted to the country’s top legislature in late August for its first reading, and the public has until September 26 to give feedback.
During panel discussions about the legislation, lawmakers said the measures filled a crucial statutory void.
Wang Ke, a member of the National People’s Congress’ Standing Committee, said that in the past, provisions covering the area had been scattered across the Supervision Law and Criminal Procedure Law, complicating asset recovery and procedures for trials in absentia.
However, the new draft was a “fundamental law” that integrated prevention, punishment and international cooperation “into a single chain”, Legal Daily quoted Wang as saying on September 1.