China equates private bribery with official corruption - what foreign companies must do now

Article by CNBW member ECOVIS

China equates private bribery with official corruption - 
what foreign companies must do now

Key Changes
(1) Private-sector bribery reclassified 
Interpretation (II) applies the same monetary and sentencing thresholds to private-sector bribery - bribe-taking by non-state personnel, bribing non-state personnel, embezzlement, and misappropriation of funds - as to bribery involving government officials.

Previously, private-sector thresholds were two to five times higher than their state-sector equivalents, giving companies significant buffer before criminal exposure. That buffer is now gone:

.  The threshold for a "relatively large amount" - where commercial bribery becomes a criminal offense - falls from RMB 60,000 (~ € 7,700) to RMB 30,000 (~ € 3,900), an amount ordinary transactions can reach easily.

.  Amounts of RMB 200,000 to 3,000,000 (~ € 26,000 -  € 387,000) now qualify as a "large amount," carrying three to ten years in prison.

(2) Sales agents and distributors offer less protection 
Companies have long used agent and distribution structures to create distance from end customers. Under Interpretation (II), that separation matters less: if an agent bribes to win or keep business and the company benefits, the conduct can be attributed to the company - provided it was approved or tacitly accepted.

(3) Economic benefit is the decisive test 
Liability now turns on whether the company gained economically - through procurement wins, higher sales, or market access via distributors. If the benefit flowed to the company, this element is typically satisfied. Together, "attribution" and "economic benefit" mean agent conduct can directly trigger corporate criminal liability.

What foreign companies should do
.  Screen procurement and sales processes for red flags
.  Conduct third-party due diligence
.  Tighten internal controls and bookkeeping
.  Clarify attribution and approval processes
.  Establish whistleblower and investigation channels
.  Brief the board and management

Bottom Line
Since 1 May 2026, enforcement has zeroed in on conduct that previously drew little scrutiny. A single facilitation payment through a local agent can expose a company's China team, on-the-ground executives, and parent company to parallel proceedings in China and at home.




Autor: Richard Hoffmann
Co-Fachsprecher des CNBW-Arbeitskreises Legal & Tax 
ECOVIS International (Ladenburg)