Exposure to the Foreign Corrupt Practices Act: A Guide for U.S. Companies with Activities in the People's Republic of China to Minimize Liability

Authors

Delia Poon

Abstract

The Foreign Corrupt Practices Act (FCPA) creates a difficult task for U.S. businesses abroad: to reconcile the customary practices of many developing countries with the U.S. legal framework, which may be incompatible with regulating behavior abroad. This Note outlines the background and the major provisions of the FCPA, and examines the difficulties U.S. entities face in the People's Republic of China in light of China's increasingly corrupt business environment. China's rampant corruption, part-planned and part-market economy, and popular joint venture arrangements for direct foreign investment create numerous FCPA pitfalls.

This Note then examines ways in which U.S. businesses can minimize their potential FCPA liability in China. The methods proposed are two-fold. First, U.S. businesses should formulate FCPA compliance measures internally. Second, U.S. entities can adopt practical strategies which would shield them from corrupt practices in China.

Recommended Citation

Delia Poon, Exposure to the Foreign Corrupt Practices Act: A Guide for U.S. Companies with Activities in the People's Republic of China to Minimize Liability, 19 Hastings Int'l & Comp. L. Rev. 327 (1996).
Available at: https://repository.uclawsf.edu/hastings_international_comparative_law_review/vol19/iss2/3