China has adopted new legislation targeting cross-border corruption, expanding the government’s efforts to pursue fugitives, recover illicit assets and strengthen oversight of companies operating internationally.
The law also introduces tighter requirements for handling sensitive information during investigations and places additional anti-corruption compliance responsibilities on Chinese businesses engaged in overseas operations.
State news agency Xinhua reported on Friday that the legislation is intended to deepen international cooperation against corruption while safeguarding China’s sovereignty and security. The move extends President Xi Jinping’s long-running anti-corruption campaign beyond domestic institutions and into the increasingly complex networks of international business, finance and asset ownership.
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The legislation comes as Chinese authorities seek to strengthen their ability to investigate corruption involving transactions, companies and individuals across national borders. Such cases can involve assets held overseas, financial transfers through multiple jurisdictions and suspects who leave China to avoid prosecution. Recovering funds and securing cooperation from foreign authorities can be difficult when investigations cross different legal systems.
In an article published by the Communist Party’s People’s Daily on Thursday, top anti-corruption official Li Xi called for stronger legal measures to address these challenges.
“Legislation should be enacted to combat cross-border corruption, to strengthen efforts to track down fugitives, prevent flight and recover illicit assets, along with greater enforcement in cross-border corruption cases,” Li wrote.
His comments point to the government’s intention to give investigators a broader legal framework for pursuing corruption cases that extend beyond China’s borders. The emphasis on preventing suspects from fleeing, locating fugitives and recovering assets suggests that the legislation is designed to address several stages of cross-border enforcement, from the movement of individuals and funds to the eventual recovery of proceeds.
A draft of the legislation was reviewed in August 2025 before undergoing revisions this month. According to Xinhua, the changes broadened its scope to include support for developing a fairer global anti-corruption governance system.
That provision gives the legislation an international dimension beyond China’s own enforcement priorities. Cross-border corruption investigations often depend on information-sharing, asset tracing and cooperation between national authorities. Differences in legal standards, investigative procedures and rules governing financial information can complicate those efforts.
The reference to global anti-corruption governance suggests Beijing wants a greater role in discussions about how countries cooperate on corruption cases.
The revised law also tightens confidentiality requirements. Investigators will be required to protect state secrets, commercial secrets and personal data obtained during probes.
The provision is significant for companies and individuals operating across multiple jurisdictions, where corruption investigations may involve commercially sensitive documents, financial records and personal information. It establishes a clearer obligation to safeguard information collected by investigators, although the precise procedures and penalties for breaches were not detailed in Xinhua’s report.
The confidentiality requirements also underline the tension between stronger enforcement and the protection of sensitive information. International investigations frequently require the exchange of corporate and financial records, making safeguards around how information is collected, stored and disclosed important to maintaining cooperation.
Chinese Companies Face Stronger Compliance Obligations
One of the most consequential changes for businesses is the requirement for Chinese companies involved in cross-border operations to establish anti-corruption compliance functions.
Xinhua said the systems must be proportionate to each company’s size, business activities, and exposure to risk. This approach suggests that compliance expectations will vary across businesses rather than impose an identical structure on every company.
For large Chinese corporations with extensive overseas operations, the requirement could involve more formal internal controls, risk assessments and procedures for monitoring transactions and business relationships. Smaller companies may face less extensive requirements, although they will still need compliance arrangements suited to their activities and exposure.
The provision could also affect how Chinese companies manage relationships with overseas partners, contractors, intermediaries and suppliers. Businesses operating in multiple markets may need to pay closer attention to how payments are authorized, how third-party representatives are selected and how potential conflicts of interest are identified.
For companies expanding internationally, compliance will become a more important part of managing operational and legal risks. Weak internal controls can expose businesses to investigations, financial penalties and disruption to overseas operations. The new requirements could therefore encourage companies to treat anti-corruption procedures as part of corporate governance rather than an administrative obligation.
The legislation also comes at a time when Chinese companies have expanded their international commercial activities across infrastructure, energy, manufacturing, technology and financial services. Greater overseas exposure creates more opportunities for commercial growth, but it also increases the number of jurisdictions, regulatory systems and business relationships that companies must navigate.
Thus, the effectiveness of the law will ultimately depend on enforcement. Requiring companies to establish compliance functions does not automatically guarantee that those systems will operate independently or identify misconduct.