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General Information

GDP USD 10360bn (World ranking 2, World Bank 2014)
Population 1364 million (World ranking 1, World Bank 2014)
Form of state Communist State
Head of government Li KEQIANG
Next elections 2018, presidential and legislative

CURRENT LOCAL TIME

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Data Protection

Contribution Details

Belinda tang

Associate

DLA Piper UK LLP Beijing representative office

Law

Provisions relating to personal data protection are found in various laws and regulations, but none of the provisions clearly define the scope of privacy rights. The main provisions are found in the General Principles of Civil Law and the Tort Liability Law, which define such rights as

a right of reputation or right of privacy. A draft Personal Data Protection Law has been under review by the government for many years, but there is still no indication as to if and when such law will be passed.

The Ministry of Information and Industry of China (“MIIT”) has published draft guidelines called the Information Security Technology – Guide for Personal Information Protection (“Draft Guidelines”).

In 28 December 2012, the decision on strengthening online information protection (the “Decision”) was adopted by the Standing Committee of the National People’s Congress (NPC). The purpose of the Decision is to protect internet information security, safeguard the lawful rights and interests of citizens, legal entities or other organizations, and ensure national security and public interests. The Decision has the same legal effect as a law.

Definition of Personal Data

Under the Draft Guidelines, personal data refers to any data or information in connection with a specific individual, which can be used, separately or in combination with other data, to identify the individual.

Personal data (which is referred to as ‘personal information’ in the Decision) means any electronic information which can enable you to identify citizen individual identity and relates to personal privacy.

Definition of sensitive Personal Data

There is currently no definition of “sensitive personal data” within existing or proposed laws or

Regulations.

national Data Protection authority

There is no national data protection authority in the People’s Republic of China (“PRC”)

Registration

The PRC does not maintain a registration of personal data controllers, personal data processing activities, or databases containing personal information.

Data Protection officers

There is no requirement in the PRC for organizations to appoint a data protection officer.

Collection and Processing

Under the Draft Guidelines, data controllers may collect and process personal data when the

following conditions are met:

  • laws and regulations explicitly authorize such collection or the data subject consents; and
  • the data controller has a specific, clear and reasonable purpose for doing so.
  • Before a data controller collects personal data, it should notify the data subject of the following:
  • the purpose, the scope of use and collection methods related to the collecting of the personal data;
  • the name, address and contact information of the data controller;
  • the consequences of not providing the requested personal data;
  • the rights of the data subject; and
  • channels for submitting complaints.

Data controllers are not allowed to collect personal data that has no direct relation with the stated purpose, and in particular data relating to race, religion, DNA, fingerprints, physical condition or sex life.

The data controller should process personal data for the stated purpose and within the scope

that the data controller has notified to the data subject. The data controller should take measures to keep the collected personal data confidential during processing and storage of the data. If

the data controller uses a third party to process the personal data, they should inform the data subject of this fact prior to collecting the data.

Under the Decision, network service providers and other enterprises may collect and use citizen

personal information when the following conditions are met:

  • comply with the lawful, reasonable, necessary principle;
  • specify the purpose, method and scope regarding the collection and use of the citizen’s
  • personal information;
  • the personal information subject consents;
  • satisfy the requirements established by the laws, regulations and mutual agreement; and
  • disclose the rules regarding collection and use.

Transfer

Under the Draft Guidelines, data controllers may transfer personal data to third parties (group

companies are considered third parties) if the following conditions are met:

  • the data controller explains the purpose and subject of the data transfer to the data subject;
  • the data subject explicitly consents to such transfer; and
  • the data controller ensures the receiver has the capability to properly process the personal data and that the personal data will be safe during the transfer.

With respect to transfers, there are no specified requirements in the Decision.

Security

Under the Draft Guidelines, data controllers must take appropriate technical and organizational measures against unauthorized or unlawful processing and against accidental loss, destruction of, or damage to, personal data. The measures taken must ensure a level of security appropriate to the harm that may result from such unauthorized or unlawful processing, accidental loss, destruction or damage, and appropriate to the nature of the data.

Article 4 of the Decision has the same requirements as noted above.

Breach notification

There is no mandatory requirement in PRC law to report data security breaches or losses to any authority or to data subjects.

Enforcement

According to Articles 9 and 11 of the Decision, failure to comply with these requirements established in the Decision is an offence. Supervisory authorities can take considerable

measures to punish or stop these illegal behaviors. Network service providers should cooperate and provide technical support when supervisory authorities perform their duties.

There is no enforcement provision or applicable penalties for noncompliance with personal data

protection requirements under other PRC laws and regulations.

Electronic Marketing

Under the Decision, any organizations and individuals are forbidden from acquiring personal electronic information by theft or other illegal methods. Also, they are proscribed from selling or unlawfully providing personal electronic information to anyone else.

Network service providers will require users to provide genuine identification information when signing agreements to grant them access to the Internet, fixed-line telephone or mobile phone services or to permit users to make information publicly.

The Decision prohibits any organizations and personnel from sending commercial electronic information to a personal fixed-line telephone, mobile phone or email address without the consent or request of electronic information recipient, or where the recipient has explicitly declined to receive such information.

online Privacy (including cookies and Location Data)

The Decision indicates that network service providers and other companies should ensure the privacy of personal information. They are not allowed to disclose, falsify, damage, as well as sell or unlawfully provide personal electronic information to anyone else.

Article 5 of the Decision indicates that network service providers should strengthen management of information issued by users. Also, network service providers should stop the transmission of unlawful information and take necessary measures to remove them and save relevant records, then report to supervisory authorities.

Once citizens find network information that discloses their identity or breaches their legal rights, or are harassed by commercial electronic information, they have the right to require that the network service provider delete related information or take measures to prevent such behaviors.

There are specific requirements regarding cookies and location data within existing laws or regulations in the PRC.

(Adopted on July 1, 1979, amended on: March 17, 1996)

Article 18

Criminal cases shall be investigated by the public security organs, unless the law otherwise provides.

The people’s procuratorate shall file a case for investigation of a crime of embezzlement and bribery, crime of dereliction of duty by a State functionary, crime infringing upon the citizen’s right of the person committed by a State functionary by abusing his power as illegal detention, extorting confessions by torture, reprisal and calumniation or illegal search, or crime infringing upon citizen’s democratic right. With regard to any other serious criminal case committed by a State functionary by abusing his power, if it is necessary for the people’s procuratorate to take cognizance of directly, the people’s procuratorate may file the case for investigation upon the decision of the people’s procuratorate at or above the provincial level.

Private cases shall be accepted by the people’s courts directly.

Article 29

No member of the judicial, procuratorial and investigating personnel may accept any treat or gift from the parties and persons entrusted by the parties, and meet, in violation of regulations, any party or any person entrusted by the party.

Any member of the judicial, procuratorial or investigating personnel who violates the provisions of the preceding paragraph, shall be investigated his legal responsibilities according to law. Any party and its legal representative shall have the right to demand his withdrawal.

Section 10 Investigations of Cases Directly Accepted by the People’s Procuratorates

Article 131

The provisions of this Chapter shall apply to the investigations of cases directly accepted by the people’s procuratorates.

Article 132

If, in a case directly accepted by a people’s procuratorate falling under the circumstances provided for in Article 60 or 61 (4) or (5) of this Law, the arrest or detention of the crime suspect is needed, a decision shall be made by the people’s procuratorate and be executed by the public security organ.

Article 133

The person detained in any case directly accepted by the people’s procuratorate shall be interrogated and questioned within 24 hours after the detention is made. When it is found that the person should not have been detained, he must be released promptly and be issued a release certificate. If an arrest is needed but the evidence is still insufficient, release upon bail pending trial or residential surveillance may be adopted.

Article 134

If a people’s procuratorate deems it necessary to arrest the person detained in a case it has accepted directly, a decision thereon shall be made within 10 days. Under special circumstances, the time limit for deciding on an arrest may be extended by one to four days. If an arrest is unnecessary, the person detained shall be released promptly; If further investigation is required and the person detained meets the requirements for release upon bail pending trial or residential surveillance, the person shall be allowed to be released upon bail pending trial or be placed under residential surveillance according to law.

Article 135

With regard to a case on which investigation has been concluded by the people’s procuratorate, the people’s procuratorate shall make a decision to initiate a public prosecution, not to prosecute or discharge the case.

(Adopted on July 1, 1979 and amended on: March 14, 1997)

The Code was adopted on 1 July, 1979 and amended on: 14 March, 1997

The Code is comprised of 11 chapters, 452 articles, prescribes the Crimes of Embezzlement and Bribery in chapter 8.

Chapter III Crimes of Undermining the Order of Socialist Market Economy

Article 163. Enterprise work personnel who make use of their job opportunity to demand property from others, or illegally receive others property in exchange for benefits, shall, in cases involving relatively large amounts, be punished with imprisonment or criminal detention for less than five years; for cases involving a large amount, with imprisonment of over five years, and may be subject to forfeiture of property.

Company and enterprise work personnel, who, in the course of economic contacts, receive personal kick-backs and commissions in various forms in violation of state rules, shall be punished according to provisions under the preceding paragraph.

Personnel performing public duties in state-owned companies and enterprises, and personnel assigned by state- owned companies and enterprises to non-state-owned companies and enterprises for performance of public duties found to be committing the acts mentioned in the two preceding paragraphs, shall be convicted and punished according to provisions under Articles 385 and 386 of this law.

Article 164. Offering property to company and enterprise work personnel for improper benefits shall in cases involving relatively large amounts be punished with imprisonment or criminal detention for less than three years, for cases involving a large amount, with imprisonment of over three years but less than 10 years, and with fine.

Units committing offenses under the preceding paragraph shall be punished with a fine, with personnel directly in charge and other directly responsible personnel being punished according to provisions of the preceding paragraph.

A briber who confesses his bribery act before prosecution may receive a lighter sentence or a waiver for punishment.

Article 165. Directors and managers of state-owned companies or enterprises who, in order to gain illegal benefits, make use of their job opportunity to conduct for themselves or others business similar to that conducted by companies or enterprises to which they attach, shall, in cases involving a large amount, be punished with imprisonment or criminal detention for less than three years, with a fine or a separately imposed fine, for cases involving extraordinarily large amounts, with imprisonment of over three years but less than seven years, and with fine.

Article 166. Work personnel in state-owned companies, enterprises, or institutions, who use their job opportunity to commit the following acts that seriously hurt state interests, shall be punished with imprisonment or criminal detention of less than three years, with a fine or a separately imposed fine; for cases that cause extraordinary huge losses to state interests, with imprisonment of over three years and less than seven years, and with fine:

(1) Offering profitable business conducted by their own units to their relatives and friends for operation;

(2) buying merchandise from units operated and managed by their relatives and friends at a price apparently higher than market price or selling merchandise to units operated and managed by their relatives and friends at a price apparently lower than market price; or

(3) Buying substandard merchandise from units operated and managed by their relatives and friends.

Chapter V the Crime of Encroaching on Property

Article 271. In cases where a person of a company, enterprise, or any unit, takes over the unit’s property by taking advantage of his office, and the amount involved in quite large, he is to be sentenced to not more than five years of fixed-term imprisonment, or criminal detention; when the amount involved is huge, the sentence is to be not less than five years, and may be in addition to confiscation of property.

When personnel engage in public service in state-owned corporations, enterprises, or other state-owned units; or when personnel of these corporations, enterprises and units assigned to engage in public service in nonstarter-owned corporations, enterprises, or other units themselves as stated in the preceding paragraph, they are to be convicted and punished according to regulations in Articles 382 and 383 of this law.

Article 272. When personnel of companies, enterprises, and other units, who take advantage of their offices to misappropriate their units’ funds for their own use or for lending to others, and the amounts involved are relatively large and have not been returned for a period of over three months; or, when the period is shorter than three months but the amounts involved are quite large and the money is used for unlawful profit-making activities, they are to be sentenced to not more than three years of fixed-term imprisonment or criminal detention; those who misappropriate huge amounts of their units’ funds, or those whose misappropriations are large and who refuse to return them are to be sentenced to not less than three years but not more than 10 years of fixed-term imprisonment.

Personnel engaged in public service in state-owned corporations, enterprises and other state-owned units, and personnel state-owned corporations, enterprises and other state-owned units assigned to engage in public service at non state-owned corporations, enterprises and other units as stated in the preceding paragraph are to be convicted and punished according to the regulations in Article 384 of this Law.

Article 273. Those directly responsible for misappropriating state funds and materials allocated for disaster relief, emergencies, flood control, allowances for disabled servicemen and the families of revolutionary martyrs and servicemen, aid-the-poor programs, resettlement, and social relief, when the circumstances are serious and have caused major damage to the interests of the state and the people, are to be sentenced to not more than three years of fixed-termed imprisonment or criminal detention; when the circumstances are particularly serious, the sentence is to be not less than three years but not more than seven years of fixed-term imprisonment.

Chapter VIII Graft and Bribery

Article 382. State personnel who take advantage of their office to misappropriate, steal, swindle or use other illegal means to acquire state properties constitute the crime of graft.

Those who are entrusted by state organs, state companies, state enterprises, state undertakings and mass organizations to administer and operate state properties but take advantage of their office to misappropriate, steal, swindle or use other illegal means to acquire state properties also constitute the crime of graft.

Those who collaborate with those personnel as listed in the aforementioned two paragraphs and join the crime are considered as committing a joint crime.

Article 383. Those who commit the crime of graft are to be punished according to the following stipulations depending on the seriousness of their cases:

(1) Individuals who have engaged in graft with an amount of more than 100,000 Yuan are to be sentenced to more than 10 years of fixed-term imprisonment or life imprisonment and May, in addition, have their properties confiscated. In especially serious cases, those offenders are to be sentenced to death and, in addition, have their properties confiscated.

(2) Individuals who have engaged in graft with an amount of more than 50,000 Yuan but less than 100,000 Yuan are to be sentenced to more than 5 years of fixed-term imprisonment and may, in addition, have their properties confiscated. In especially serious cases, those offenders are to be sentenced to life imprisonment and, in addition, have their properties confiscated.

(3) Individuals who have engaged in graft with an amount of more than 5,000 Yuan but less than 50,000 Yuan are to be sentenced to more than one year but less than seven years of fixed-term imprisonment. In serious cases, those offenders are to be sentenced to more than seven years but less than 10 years of fixed-term imprisonment. Individuals who have engaged in graft with a amount of more than 1,000 Yuan but less than 10,000 Yuan may receive a reduced punishment or be exempted from punishment if they express repentance after having committed crimes and actively returning the illegally obtained money. However, they will receive administrative action to be decided by the unit to which they belong or the higher administrative organ.

(4) Individuals who have engaged in graft with an amount of less than 5,000 Yuan, with the situation being serious, are to be sentenced to less than two years of fixed-term imprisonment or criminal detention.

In lighter cases, they will be given administrative action to be decided by the unit to which they belong or the higher administrative organ.

Toward those who have committed repeated crimes of graft, all amounts of graft of unhandled cases are to be added in meting out punishment.

Article 384. State personnel who take advantage of their office and misappropriate public funds for personal use or illegal activities or misappropriate large amounts of public funds without returning the money within three months are guilty of the crime of embezzlement and are to be sentenced to not more than five years of fixed-term imprisonment or criminal detention. In serious cases, those offenders are to be sentenced to more than five years of fixed-term imprisonment. Those who misappropriate a large amount of public funds without returning the money are to be sentenced to more than 10 years of fixed-term imprisonment or life imprisonment.

Those who misappropriate funds for relief of natural disasters, flood prevention, preferential treatment to military dependents, helping the poor and aid supplies for personal use are to be punished in a severe manner.

Article 385. State personnel who take advantage of their office to demand money and things from other people or if they illegally accept money and things from other people and give favors to the latter are guilty of the crime of bribery.

State personnel in their economic operation accept various kinds of kickback and handling fees for their personal use in violation of state provisions also guilty of the crime of bribery and are to be punished accordingly.

Article 386. Whoever commits the crime of accepting bribes is to be punished on the basis of Article 383 of this law according to the amount of bribes and the circumstances.

A heavier punishment shall be given to whoever demands a bribe.

Article 387. State organs, state-owned companies, enterprises, institutions, and people’s organizations which exact or illegally accept articles of property from other people and try to obtain gain for other people shall be sentenced to a fine if the circumstances are serious; moreover, their personnel who are directly in charge and other personnel who are directly held responsible for the crime are to be sentenced to not more than five years of fixed-term imprisonment or to criminal detention.

In economic activities, should the units listed in the preceding paragraph secretly accept, outside the account, kickback or service charges of various types, they are to be punished as having accepted a bribe on the basis of the provisions in the preceding paragraph.

Article 388. State functionaries, who help tractors to seek illegitimate gain, exact or accept articles of property from tractors by taking advantage of the facilities created by their authority of office or position, or through the action related to the post of other state functionaries, shall be dealt with according to the crime of accepting bribes.

Article 389. An act of giving state functionaries articles of property in order to seek illegitimate gain shall be considered a crime of offering bribes.

In economic activities, whoever gives articles of property to state functionaries in violation of state provisions, when the amount is fairly large, or gives a kickback or service charges of various types to state functionaries in violation of state provisions is to be dealt with as committing the crime of offering bribes.

Whoever gives articles of property to state functionaries due to extortion but receives no illegitimate gain shall not be considered as committing the crime of offering bribes.

Article 390. Whoever commits the crime of offering bribes is to be sentenced to not more than five years of fixed-term imprisonment or to criminal detention; whoever offers bribes to seek illegitimate gain, when the circumstances are serious, or causes great damage to state interests, is to be sentenced to not less than five years and not more than 10 years of fixed-term imprisonment, or to not less than 10 years of fixed-term imprisonment or life imprisonment when the circumstances are extremely serious, and may in addition be sentenced to confiscation of property.

Before prosecution, offenders in offering bribes who take the initiative to admit their crime may receive a lighter punishment or be exempted from punishment.

Article 391. To seek illegitimate gain, whoever gives articles of property to state organs, state-owned companies, enterprises, institutions, and people’s organizations, or in economic activities gives kickbacks or service charges in violation of state provisions, is to be sentenced to not more than three years of fixed-term imprisonment or to criminal detention.

Whichever unit commits the crime mentioned in the preceding paragraph is to be sentenced to a fine, and the responsible persons who are directly in charge of the unit or other personnel who are held directly responsible for the crime shall be punished on the basis of the preceding paragraph.

Article 392. Whoever introduces bribery to state functionaries, when the Circumstances are serious, is to be sentenced to not more than three years of fixed-term imprisonment or to criminal detention.

Before prosecution, if the person introducing bribery to state functionaries takes the initiative to admit his/her crime, he or she may receive a lighter punishment or be exempted from punishment.

Article 393. To seek illegitimate gain, any unit which offers bribes or gives kickback or service charges to state functionaries in violation of state provisions, when the circumstances are serious, is to be sentenced to a fine, and the personnel directly in charge of the unit or other personnel who are directly held responsible for the crime are to be sentenced to not more than five years of fixed- term imprisonment or to criminal detention.

In case the income obtained illegally through bribery is received by an individual, the individual shall be punished according to the crime stipulated in Article 389 and Article 390 of this law.

Article 394. State functionaries who accept gifts in the course of carrying out official duties at home or in intercourse with foreign countries but who fail to turn over the gifts to the state in accordance with state provisions, when the amount is fairly large, shall be punished in accordance with the crimes stated in Article 382 and Article 383 of this law.

Article 395. When the property or expenses of state functionaries clearly exceed their legitimate income, when the difference is huge, they shall be ordered to explain the sources of their property. When state functionaries fail to explain the legitimacy of their property, that part of property shall be considered an illegal income, and they themselves shall be sentenced to not more than five years of fixed-term imprisonment or to criminal detention, and the difference must be handed over to the state.

State functionaries who have savings deposits in foreign countries must declare their deposits according to state provisions. Those who hide their deposits of this nature by not declaring them are to be sentenced to not more than two years of fixed-term imprisonment or to criminal detention; when the circumstances are not serious, they shall be given administrative punishment by the unit to which they belong or by a competent organ of a higher level according to the circumstance.

Article 396. State organs, state-owned companies, enterprises, business units, and mass organizations which violate state regulations by privately distributing state assets to groups of individuals in the name of the units, where the amounts involved are fairly large, the principal personnel directly responsible and other personnel with direct responsibility shall be sentenced to not more than three years of fixed-term imprisonment or criminal detention, and may in addition or exclusively be sentenced to a fine; and when huge amounts are involved, not less than three years and not more than seven years of fixed-term imprisonment, and may in addition be sentenced to a fine.

Judicial organizations and administrative and law enforcement organizations which violate state stipulations by privately distributing to groups of individuals fines and confiscated goods that should be turned over to the higher authorities, shall be punished in accordance with the stipulations of the preceding paragraph.

Police Background Check Procedures

Who can apply?

•The individual must make the application in person.

•A third party representative must consult the Public Security Bureau covering their county of residence during their residency in China.

Where?

• Applications must be made in person at the Notary Public Office at province/city/district of residency after obtaining the form from local police station.

• Different cities/districts/provinces vary in their procedures, therefore we encourage applicants to confirm by directly contact their local Public Notary Office or Public Security Bureau.

• A third party representative must consult the Public Security Bureau covering their county of residence during their Chinese residency.

• Mailed applications will n ot be accepted.

• Embassies/Consulates will not accepted applications.

What must the applicant supply?

Local citizens must provide their local Police Security Bureau or police station with:

• Original ID Card

• Original Permanent Residence Registration (Hukou)

• Original File Card (Cun tang ka)

• Authorisation Letter (if through a third party)

The police station may request a statement from the potential employer of the applicant.

Local non-citizens must provide their local Police Security Bureau or police station with:

• Copy of passport with Chinese visa (new and old)

• Temporary Residence card (ju liu zheng)

• Authorisation Letter from work unit/school/university

What are the costs/turnaround?

• Fee applicable

Contact Details

Further details can be requested via the Chinese Embassy in London;

Embassy of the People’s Republic of China

49-51 Portland Place W1B 1JL

Monday-Friday 09:00-12:30, 14:00-17:00

Tel: 020 7299 4049

Website:www.chinese-embassy.org.uk

China – Know Your Customer (KYC) Rules

China is swiftly becoming a major global financial center, with a rapidly growing economy and increased integration in the international market.

The primary sources of criminal proceeds are corruption, narcotics and human trafficking, smuggling, economic crimes, intellectual property theft, counterfeit goods, crimes against property, and tax evasion. Money is generally laundered through bulk cash smuggling, trade-based fraud (over/under pricing of goods, falsified bills of lading and customs declarations, counterfeit import/export contracts), real estate, and both the formal and underground banking systems.

Most money laundering cases currently under investigation involve funds obtained from corruption and bribery. Proceeds of tax evasion, recycled through offshore companies, often return to China disguised as foreign investment and, as such, receive tax benefits. Chinese officials have noted that most acts of corruption in China are closely related to economic activities that accompany illegal money transfers.

Chinese authorities have observed that the increase in AML efforts by banks has been accompanied by increased laundering through the underground banking system and trade fraud. Value transfer via trade goods, including barter exchange, is a common component in Chinese underground finance. Many Chinese underground trading networks in Africa, Asia, the Middle East, and the Americas participate in the trade of Chinese-manufactured counterfeit goods.

China is not a major offshore financial center. China has multiple Special Economic Zones (SEZs) and other designated development zones at the national, regional, and local levels. SEZs include Shenzhen, Shantou, Zhuhai, Xiamen, and Hainan, along with 14 coastal cities and over 100 designated development zones.

KNOW-YOUR-CUSTOMER (KYC) RULES:

Enhanced due diligence procedures for PEPs:

A PEP is an abbreviation for Politically Exposed Person, a term that describes a person who has been entrusted with a prominent public function, or an individual who is closely related to such a person. The terms PEP, Politically Exposed Person and Senior Foreign Political Figure are often used interchangeably

    • Foreign PEP: YES
    • Domestic PEP: YES

China – KYC covered entities

The following is a list of Know Your Customer entities covered by Chinese Law:

    • Banks
    • Securities dealers
    • Insurance companies

China – Suspicious Transaction Reporting (STR) Requirements:

Number of STRs received and time frame: 61,852,018 in 2010

The following is a list of STR covered entities covered by Chinese Law:

    • Banks
    • Securities dealers
    • Insurance companies

MONEY LAUNDERING CRIMINAL PROSECUTIONS/CONVICTIONS:

Prosecutions: Not available
Convictions: 11,456 in 2010

ENFORCEMENT AND IMPLEMENTATION ISSUES AND COMMENTS:

In 2011, the Government of China (GOC) adopted special legislation that defines the legal scope of “terrorist activities” related to the crime of terrorist financing (among other crimes) and provides the legal basis for the establishment of a national, interagency terrorist asset freezing body that, if robustly implemented, should bring China into greater compliance with the requirements of UNSCRs 1267 and 1373.

The GOC should strengthen AML/CFT enforcement efforts to keep pace with the sophistication and reach of criminal and terrorist networks. Although mandatory, the courts do not systematically pursue the confiscation of criminal proceeds, which undermines any disincentive to commit the crime. The GOC should ensure that all courts are aware of and uniformly implement the mandatory confiscation laws. China also should enhance coordination among its financial regulators and law enforcement bodies to better investigate and prosecute offenders. China‘s Ministry of Public Security should continue ongoing efforts to develop a better understanding of how AML/CFT tools can be used to support the investigation and prosecution of a wide range of criminal activity.

U.S. law enforcement agencies note that the GOC has not cooperated sufficiently on financial investigations and does not provide adequate responses to requests for financial investigation information. In addition to the lack of law enforcement based cooperation, the GOC‘s inability to enforce U.S. court orders or judgments obtained as a result of non-conviction based forfeiture actions against China-based assets remains a significant barrier to enhanced U.S. – China cooperation in asset freezing and confiscation.

The GOC should expand cooperation with counterparts in the United States and other countries, and pursue international linkages in AML/CFT efforts more aggressively. U.S. agencies consistently seek to expand cooperation with Chinese counterparts on AML/CFT matters and to strengthen both policy- and operational-level cooperation in this critical area. While China continues to make significant improvements to its AML/CFT legal and regulatory framework and is gradually making progress toward meeting the international standards, implementation, particularly in the context of international cooperation, remains lacking.

Risk

Sovereign risk

In March 2015 the central government announced that local authorities would be able to refinance up to Rmb1trn (US$163bn) in debts by issuing bonds with lower financing costs. This is only likely to be the first of several rounds of bond issuance, which will improve the structure of sovereign liabilities but will also push up the acknowledged level of public debt.

Banking sector risk

The PBC is expected to lower benchmark interest rates one more time in 2015, following the cut announced in February, but credit conditions will continue to feel tight for most firms and loan defaults will increase. Our core assumption is that local banks will be able to cope with the anticipated rise in non-performing loans over the period.

Political risk

The president, Xi Jinping, is likely to continue with an aggressive anti-corruption campaign in 2015-16. This, and the government’s push to reform state-owned enterprises, especially in the energy sector, may raise factional tensions within the ruling Chinese Communist Party. China’s political system is nevertheless expected to avoid major instability in 2015-16.

Economic structure risk

The Chinese economy is diversified in most respects, but parts of the current economic reform drive, particularly those relating to financial liberalisation, could cause instability. A glut of real-estate supply poses a substantial threat.

Travel Risk

Security

The decision to travel is your responsibility. You are also responsible for your personal safety abroad. The purpose of this Travel Advice is to provide up-to-date information to enable you to make well-informed decisions.

Xinjiang Uyghur Autonomous Region

Sporadic violent clashes occur in the Xinjiang Uyghur Autonomous Region. Attacks using explosive devices, firearms and knives have taken place, often resulting in deaths and injuries. Unrest and sporadic acts of violence are expected to continue. The presence of armed police is visible, and local authorities continue to monitor the situation very closely. Curfews and restrictions may be imposed on short notice. Attacks do not specifically target tourists or foreigners, but the danger of being in the wrong place at the wrong time is always present. Avoid gatherings and demonstrations, and follow the instructions of local authorities.

Crime

Petty crime, such as pickpocketing, purse snatching, and theft of mobile phones and laptop computers, is prevalent, even during the day. Foreigners are targeted, especially in major cities and tourist areas. Be vigilant in all crowded locations, including tourist sites, trade fairs, restaurants, coffee shops, Internet cafés, markets and department stores. Do not carry large sums of money. Secure valuables, with the exception of passports, in hotel safe-deposit facilities. Violent crime is relatively rare, although foreigners have been attacked and robbed.

Petty crime and sexual harassment occur on buses and overnight trains. Ensure that the train compartment contains packages belonging only to you and other occupants. Store personal belongings in a safe place and do not leave the compartment unattended. Doors should be securely locked.

Cases of extortion by taxi, motorcycle and pedicab drivers have increased. Foreigners have also been approached by strangers and invited to a nearby establishment for a drink (usually tea or alcohol). They were then presented with an exorbitant bill (sometimes hundreds of dollars) and forced to pay under threat of injury. In some cases, the person was harmed. Be cautious of unsolicited requests from strangers to “practice English” or to accompany them to an œart gallery or unknown location, and telephone scams where the caller claims you are being investigated by local authorities. See our Overseas fraud page for more information on scams abroad.

Since early 2014, a number of explosions and knife attacks have occurred in public places, including in busy railway stations, resulting in injuries and fatalities.

There is a risk of armed bandit attacks in remote parts of China. Police presence is poor in areas bordering Burma, Laos, Pakistan, Russia and Vietnam.

Demonstrations

Demonstrations are illegal and should be avoided. Participants may be subject to severe legal action.

Transportation

Poor driving standards and poor road conditions outside major cities make travelling hazardous. Travelling after dark outside major cities is not recommended.

China has an extensive system of passenger trains. Most trains are slow, although there are express trains on the well-travelled routes. Taxis are plentiful in major cities and can be obtained at hotels or taxi stands. Most taxi drivers do not speak English or French, so you should arrange for a Chinese-speaking person to write out your destination in detail on a card before you go. Rental cars are available only in the largest cities, generally with a driver.

Ferry accidents have occurred in China due to overcrowding. Exercise caution and common sense when using marine transportation and do not board ferries that are overloaded.

See Transportation Safety in order to verify if national airlines meet safety standards.

Piracy

Pirate attacks occur in coastal waters and, in some cases, farther out at sea. Mariners should take appropriate precautions. For additional information, consult the Live Piracy Report published by the International Maritime Bureau.

Trekking

If you intend to trek:

a) never trek alone;

b) always hire an experienced guide and ensure that the trekking company is reputable;

c) buy travel health insurance that includes helicopter rescue and medical evacuation;

d) ensure that you are in top physical condition;

e) advise a family member or friend of your itinerary;

f) know the symptoms of acute altitude sickness, which can be fatal;

g) register with a Canadian government office in China; and

h) obtain detailed information on trekking routes before setting out.

Annual Cases

Budget Autonomy No
Annual Budget of the Agency The estimated budget for the financial year 2013/14 which begins on 1 April is HK$ 920 million
Per Capital Expenditure $(US) 15.69
Expeniture as % of the GDP 0.03 %
Are employees protected by law from recrimination or other negative consequences when reporting corruption (i.e. whistle-blowing)? No
Does your country have freedom of information legislation? No
Does your country have conflict of interest legislation? No
Does your country have a financial disclosure system to help prevent conflicts of interest? Yes
Who appoints the head of your agency? The Commissioner of the Independent Commission Against Corruption is appointed by the State Council of the Peoples’ Republic of China, on recommendation of the Chief Executive of HKSAR Government.
Who has the authority to remove the head of the ACA? The same process and mechanism apply as in the appointment.
Is there any term limit for the head of the ACA? Yes , 5 years
Does your agency measure performance? Yes
Number of investigations launched
Number of investigations completed
Other, please specify
On the law enforcement front: the number of corruption reports, investigations completed, persons prosecuted and convicted.
On corruption prevention front: studies on corruption prone areas and monitoring of the implementation of corruption prevention advice, and corruption prevention advice given to private and public organisations.
(iii) On community relations, corruption prevention service and training given to various trades and industries, public organizations, the civil service and young people, as well as election briefings and education for candidates during public elections
Full access to Government Yes

Address Format

RECIPIENT

[BUILDING] [APARTMENT]
[HOUSE_NUMBER STREET,]
[DOUBLE_DEPENDENT_LOCALITY,] [DEPENDENT_LOCALITY,]
[LOCALITY] PROVINCE POSTAL_CODE
CHINA

Sample

LIÁNGJI LTD

300 HUÁIHAIZHONGLÙ
SHÀNGHAISHÌ 200021
CHINA

 

Summary

Calendar GMT Reference Actual Previous Consensus Forecast
2014-10-21 03:00 AM Q3 7.3% 7.5% 7.2% 7.12%
2015-01-20 02:00 AM Q4 7.3% 7.3% 7.2% 7.2%
2015-04-15 03:00 AM Q1 7.0% 7.3% 7% 7.1%
2015-07-15 03:00 AM Q2 7.0% 7.52%
2015-10-19 03:00 AM Q3 7.26%
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