China Command State Firms to Guard Against Corruption Risks Overseas

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On Monday, the corruption watchdog of China prompted its state-owned enterprises (SOE) to guard against the risk of corruption in their entities overseas, saying that it was an important task of each company’s Communist Party cell.

The Central Commission for Discipline Inspection said that it had published guidelines that are instructing state firms to deal with such risks that could emerge from their overseas personnel and decision-making.

In a statement on its website, it stated: “Party committees and discipline inspection groups at every state enterprise must stick to the highest standard of Communist Party discipline and deeply understand the importance urgency of controlling overseas risks.”

The plan was to “ensure the safety of China’s assets, make our state enterprises strong and excellent, and cultivate world-class enterprises that are globally competitive,” it added.

The wide-ranging crackdown on corruption in China has widely focussed on the domestic operations of its state-owned enterprises instead of their overseas activities.

In 2015, the government said that it would audit the overseas assets of its SOEs following the disclosure of Xinhua, a state news agency, that the government does not audit the 4 trillion yuan (£476.6 billion) of assets that such firms hold overseas.