Tag: china initiative

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In The News: AABANY’S Karen King Co-Authors New York Law Journal Article in DOJ’s China Initiative

On November 8, 2021, the New York Law Journal published an article co-authored by Pro Bono & Community Service Committee Co-Chair Karen King, together with fellow Morvillo Abramowitz Partner Telemachus Kasulis. The article is entitled “DOJ’s China Initiative’s Three-Year Anniversary: Growing Pains and Uncertainty.” 

The article discussess how the Department of Justice’s “China Initiative” encourages discrimination and racial profiling against Asian Americans. The China initiative was started three years ago to combat economic and national security threats from the Chinese government. The article reveals how in reality only a small portion of cases involved actual charges of economic espionage or conspiracy. In one instance, a Chinese Canadian engineering professor, Anming Hu, was wrongly prosecuted for being a Chinese spy and was acquitted of all charges this past September. 

The authors note a parallel of the China Initiative to other discriminatory acts: “Critics continue to liken the China Initiative to the Chinese Exclusion Act of 1882, the internment of Japanese Americans during World War II, McCarthyism, and racial profiling against Muslims in the wake of the September 11th attacks.” 

The article relates that the Biden administration has only made five new cases public. The authors note that the Biden administration appears to be stepping away from non-disclosure cases in which ties to the Chinese government appear weak. 

To read the full article, click on the following link: 

https://files.constantcontact.com/d6baf1e7801/f2add8b0-8343-4378-956c-6826d2ca9289.pdf

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Global Investigations Review Article on “Why anti-bribery enforcement scrutiny in China is here to stay” Co-Authored by Jian Wu

On May 21, 2020, Global Investigations Review published an article co-authored by AABANY Asia Practice Committee Co-Chair Jian Wu. The article is titled “Why Anti-bribery Enforcement Scrutiny in China Is Here to Stay.”

The article discusses how the US Department of Justice (DOJ) and Securities and Exchange Commission (SEC) are increasingly enforcing the Foreign Corrupt Practices Act (FCPA) against US public companies with operations in China. Following the DOJ’s announcement of the new “China Initiative” in November of 2018, priority has been given to identifying FCPA cases involving Chinese companies that compete with American business. Recently, it was reported that a US-listed health nutrition company was nearing a $123 million settlement with the DOJ and SEC related to an anti-corruption compliance investigation in China. The article highlights that such FCPA investigations and cases are likely to increase in the US. However, it still remains to be seen if China will follow up enforcement measures with a parallel focus.

The article notes that because “…the China Initiative puts Chinese companies and individuals in the spotlight, multinational corporations should carefully deal with their ongoing business relationships involving Chinese companies. At the same time, multinational corporations should not take enforcement by the Chinese authorities lightly. Chinese authorities are increasingly exercising closer supervision over bribery activities involving multinational corporations.”

With recent and ongoing policy changes and rising tensions between the US and China with the COVID-19 pandemic, multinational corporations need to focus on corporate compliance in 2020, remain informed about any new FCPA related developments, and get ahead of any challenges that may arise ahead of time.

To read the full article, click here.