China’s New Approach for Corruption Cases Through New Judicial Interpretation

On May 1, 2026, China’s new judicial interpretation on bribery offenses (i.e., Interpretation II on Issues Concerning the Application of Law in Criminal Cases of Embezzlement and Bribery (the “Interpretation”)) took effect. The Interpretation clarifies how procuratorates and courts in China should approach those offenses. It carries significant compliance impacts for multinational companies (MNCs) operating in China.

1. The Interpretation Matches Conviction and Sentencing Standards for Commercial Bribery with Those for Public Bribery.

China’s Criminal Law (the “Criminal Law”) framework previously set different monetary thresholds for conviction and sentencing of bribes to private individuals (“Commercial Bribery”) and those to public officials (“Public Bribery”). The monetary thresholds for Commercial Bribery were twice those for Public Bribery, which caused a lower likelihood of conviction for the former.

Article 8 of the Interpretation eliminates this distinction. The two offenses now have the same threshold as to the bribery value. This alignment signals that the judiciary and procuratorates will heighten their scrutiny of Commercial Bribery.

2. The Interpretation Clarifies the Categories of Managerial Involvement in Determining Corporate Bribes to Public Officials.

The Criminal Law has long held corporate entities accountable for providing bribes to public officials. Historically, however, it did not set forth clear categories of managerial involvement in determining whether bribes provided by companies’ employees should be considered to be the employees’ own misconduct or attributed to their employers and therefore constitute corporate liability for Public Bribery.

Article 16 of the Interpretation clarifies two scenarios under which Chinese courts would find corporate bribery liabilities, i.e., a company receives the illegal gains stemming from a public bribe, plus the decision to provide the bribe is either (i) the company’s “collective decision” or (ii) determined by the company’s “actual controllers or managerial personnel.” Although the Interpretation does not define “actual controller or managerial personnel,” in practice, these concepts usually refer to senior executives such as legal representatives or general managers.

3. The Interpretation Lowers Conviction and Sentencing Thresholds for Corporate Bribes to Public Officials in Key Sectors.

Article 4 of the Interpretation, among other scenarios, lowers the conviction and sentencing thresholds of corporate liabilities for Public Bribery in eight key sectors: environment, finance, manufacturing safety, food and drugs, disaster prevention and relief, social security, education, and healthcare. In these sectors, the conviction and sentencing thresholds for a company’s Public Bribery are lowered from RMB 200,000 to RMB 100,000 for “serious circumstances” and from RMB 2 million to RMB 1 million for “especially serious circumstances,” which make it more likely to impose serious criminal penalties. This sector-based approach underscores China’s policy focus on safeguarding public welfare and market order. Authorities are expected to closely scrutinize anti-bribery risks in these sectors.

Practical Impacts for MNCs

• The conviction and sentencing standards for Commercial Bribery now match those for Public Bribery. MNCs should revisit their risk management frameworks for interactions with private stakeholders to ensure that their controls relating to private business partners adapt to this heightened review scrutiny for Commercial Bribery.
• The Interpretation lowers Public Bribery’s conviction thresholds in eight key sectors in determining corporate responsibilities. This approach is consistent with regulatory enforcement priorities recently observed in China. MNCs with operations that involve these key sectors should assess whether their compliance programs sufficiently address the policy priorities signaled in the Interpretation.

As further explained in the Terms / Notices linked below, the information provided herein is not legal advice. Any information concerning the People’s Republic of China (PRC) is not an opinion on, determination on, or certification of the application of PRC law. We are not licensed to practice PRC law.