Anti-Corruption Provisions in Third-Party Contracts in China

Like in most countries, anti-corruption enforcement actions in China are often triggered by third-party misconduct. As more and more multinational companies start to enforce the anti-corruption provisions in their Chinese third-party contracts, practical issues emerge. For example, a third party may not cooperate with an audit because it claims the audit provision is vague. In a guest article, Kate Yin and Samuel Yu, from the Chinese firm Fangda Partners, advise on how a company can anticipate these issues and effectively protect itself using anti-corruption provisions in third-party contracts. See the Anti-Corruption Report’s series on third-party contracts, “A Guide to Anti-Corruption Representations in Third-Party Contracts: Nine Clauses to Include (Part One of Two)” (Jun. 25, 2014); “Clauses for High-Risk Situations and Enforcement Strategies (Part Two)” (Jul. 9, 2014).

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