China will introduce a raft of evolutionary legislation this year, even as regulatory reach from overseas closes in on business within the nation, writes Luo Weiteng
With the Belt and Road Initiative in full swing, the US and China are locked in an escalating trade battle, Chinese telecoms giants ZTE and Huawei are under greater scrutiny in the US, and the importance of compliance has been given unprecedented attention and
recognition in the past year.
“What happened to Huawei and ZTE in 2018 taught all the companies a sobering and lively compliance lesson,” says You Yong, former general manager of the legal affairs division at China Minmetals Corporation in Beijing. “Therefore, 2019 is to be the year of compliance.”
This era of compliance is just around the corner. Some 54% of state-owned enterprises (SOEs) and 35% of privately owned companies have general compliance policies in place, according to findings from the China Compliance Blueprint for 2017-2018, jointly compiled by the China Institute of Corporate Legal Affairs, the Company Rights Protection Centre of China Council for the Promotion of International Trade (CCPIT) and Shanghai-based law firm Fangda Partners.