Compliance & Government Enforcement

The complex and constantly changing regulatory environment is one of the biggest challenges for businesses both in China and abroad. Fangda has extensive experience advising clients on regulatory compliance. Our local expertise and global vision enable us to provide our clients with insightful opinions on compliance issues under PRC law and on cross-border compliance issues. This includes providing compliance and regulatory reviews, undertaking investigations, dealing with government agencies, representing clients in administrative hearings and appeals, as well as in related litigation, and advising clients on comprehensive compliance programs and complex issues.

We have been consistently ranked as a Band 1 law firm in corporate investigation and regulatory compliance by Chambers Asia, Legal 500 and other authoritative directories, as well as being widely recognized for our expertise by clients. We routinely represent clients across industries in a wide range of regulatory matters, including anti-bribery, data compliance, cybersecurity, state secrecy, export controls and sanctions, white-collar crime, environmental law, health and safety, anti-money laundering, and global regulatory compliance matters, among other issues.

Our clients from several industries benefit from our well-established working relationships with the regulatory authorities in mainland China and Hong Kong at both central and local levels. Some of our lawyers are former regulators or procurators, which enables us to provide unique and insightful advice and assistance. Most of our lawyers have both extensive domestic practice experience and solid international backgrounds, and are familiar with the complex and constantly changing global regulatory environment. This enables us to provide full-scale regulatory compliance services for Chinese companies going global to protect their global business from compliance risks.

Recognition

  • Corporate Investigations/Anti-Corruption (PRC Firms) - Band 1
    Chambers Asia-Pacific 2017-2020
  • Regulatory/compliance: PRC firms - Tier 1
    The Legal 500 Asia-Pacific 2017-2020
  • Regulatory & Compliance Firm of the Year
    China Law and Practice 2015, 2016, 2019
  • Government & Regulatory Firm of the Year
    Benchmark Litigation Asia-Pacific Awards 2019

"Highly respected team with a deep bench, acting on various corporate investigations and anti-corruption matters. Highlighted for its experience in U.S. Foreign Corrupt Practices Act (FCPA) and Securities and Futures Commission investigations as well as compliance work. Enviable client list includes large foreign corporations and domestic entities from a number of sectors, such as TMT, pharmaceutical, manufacturing, financial and automotive, as well as high-profile individuals. Clients benefit from its experience in compliance training and designing compliance programmes and policies. Fields a group of specialists equipped with previous enforcement or prosecution experience to offer government enforcement advice. Regularly handles instructions in relation to criminal investigations and proceedings. "

Chambers Asia-Pacific, 2020

"Fangda Partners has a dedicated corporate investigation team which handles the full gamut of anti-corruption matters, government enforcements (administrative and criminal), compliance advice, structuring compliance programmes, as well as policies and related contentious matters. "

Legal 500, Asia-Pacific, 2019

Notable Matters

Our team has advised many global leaders in a wide range of sectors, including the life sciences, TMT and finance sectors in complex and challenging matters, including advising, assisting, defending or representing:

Compliance & Government Enforcement

Anti-Bribery and Corruption

Anti-bribery and corruption is one of our deepest areas of expertise. We have extensive experience representing both MNCs and domestic companies in providing a full range of anti-bribery and anti-corruption services, including establishing compliance policies, advising on and implementing compliance programs, conducting internal investigations, and evaluating and resolving business model compliance risk assessments, as well as handling government investigations and other contentious matters.

  • A leading U.S. MNC in the technology sector in handling a criminal investigation by the Chinese Procuratorate and internal investigations relating to potential violations of the FCPA, Chinese commercial bribery laws and accounting fraud involving third parties. In recognition of the client’s thorough investigation and full cooperation, both the Procuratorate and the U.S. Department of Justice (DOJ) declined prosecution.
  • A world-leading coating supplier in conducting an internal investigation on potential corruption involving third parties in China which led to the client’s global self-disclosure.
  • A well-known energy company in a criminal enforcement case initiated by the Indian Central Bureau of Investigation (CBI) on suspected bribery of Indian government officials by its Chinese subsidiary and conducting an internal investigation based on the U.S. FCPA and PRC anti-commercial bribery laws.
  • A Chinese SOE in response to an investigation initiated by the government of Pakistan, resulting in no penalties for the client.
  • A China-based, U.S.-listed company and its subsidiaries in their anti-corruption/FCPA due diligence in connection with their multibillion U.S. dollar investments in China for their multibillion-dollar investments in a wide range of industries.
  • Several private equity firms on their anti-corruption compliance due diligence.
  • A Fortune 500 company in an investigation by Shanghai AIC concerning commercial bribery, in which we successfully caused the case escalated to the state AIC and had the AIC abandon further investigation.
  • A leading MNC in a regulatory investigation by the Shanghai AIC relating to potential violations of Chinese commercial bribery and anti-trust laws. We persuaded the regulatory authority not to impose any punishment.
  • A Hong Kong-listed company (with its majority shareholder being a U.S.-listed MNC) in an internal investigation into its PRC subsidiary relating to a complex scheme of employee’s misconduct and representing the company in regulatory investigations and inquiries by Hong Kong and the U.S. governments; and assisting the company to establish a comprehensive compliance program to mitigate risks identified in the investigations.
  • Multiple leading life science companies in their internal investigations of potential violations of the FCPA, Chinese anti-commercial bribery laws, channel staffing, cross-selling, accounting fraud and employment issues, as well as other violation of laws and corporate compliance policies.
  • A leading real estate company in an internal investigation of embezzlement of company executive, and report implicated company executive to the Public Security Bureau (PSB). Advise the client on complex legal issues involved. As a result of our work, the executive returned more than RMB10 million to the company.
  • A world-leading elevator manufacturer in its internal investigations, including advising on a criminal case filing, among other issues.
  • Several Chinese SOEs with anti-corruption, sanctions, data privacy, environmental and antitrust reviews, and conducting compliance inspections of overseas operations to help the companies establish compliance programs in accordance with requirements of the State-owned Assets Supervision and Administration Commission (SASAC).
  • A wide range of companies (including those in the consumer product, pharmaceutical, technology, automotive, finance, energy, entertainment, and other sectors) in formulating compliance policies for their business in China, and establishing compliance management systems, including risk management system, government dawn raid response system and third-party management system.
Data Privacy, Cybersecurity and State Secrecy

Fangda is a leading PRC law firm advising clients on data privacy, cybersecurity, state secrecy and related data compliance. Our areas of expertise include helping clients build global and China-specific data protection programs, implementing the program, establishing third party management, conducting data privacy due diligence, and advising clients on challenging data privacy issues arising from business operations.

  • A well-known China-based company in establishing and improving its global data compliance system, establishing a global data network and operating mechanism (such as data localization and cross-border transfer, among other practices), advising on various data issues relating to products and services in the global markets, assisting it to deal with various global emergencies (such as data leaks, government investigations and inquiries) and conducting data compliance due diligence in various investments, and responding to comprehensive data compliance reviews by business partners, such as Facebook.
  • A number of well-known MNCs and Chinese companies (in the AI, big data, automotive and transportation, entertainment, life sciences, e-commerce, consumer product, and manufacturing sectors) in data mapping, gap analysis, and establishing data compliance programs; advising on a series of complex legal issues, such as internal data security management, third-party data cooperation, cross-border data transfer, important data identification, and data localization.
  • A number of companies in responding to data breaches and managing the crises, including filing data breach reports, communicating with a number of regulatory agencies, notifying personal information subjects and handling complaints from personal information subjects, managing media disclosure and tracking public opinion, assisting the companies in filling criminal cases and taking remedial measures.
  • A leading hotel management company in the criminal litigation and an investigation initiated by multiple Chinese law enforcement authorities in connection with alleged cybersecurity law violation. We successfully persuaded the Public Security Bureau (PSB) to withdraw the criminal case and achieved a positive result for the other investigation.
  • A fintech company in a criminal investigation conducted by the PSB and assisting the client in improving its compliance program. The investigation was caused by suspected infringement of personal information by one of the client’s business partners. The PSB dropped the investigation.
  • A China-based media company in a case involving several executives and employees suspected of infringing citizens’ personal information; and assisting the client in reviewing its business models and providing regular data consulting services in relation to its data products. The executives and employees all successfully obtained bail.
  • A Chinese state-owned airline on data compliance matters, including data-related dispute resolution, extraterritorial application of laws and emergency response.
  • A China-based, U.S.-listed company in its data compliance due diligence for a potential investment of a logistics group and its post-merger compliance integration. The due diligence was conducted based on PRC data protection laws and the GDPR.
  • A Chinese company on its data compliance due diligence in connection with its IPO in Hong Kong.
  • A number of Chinese companies and MNCs to evaluate the risk of cross-border data transfers; advising the best transfer solutions under various scenarios.
  • A number of companies in managing dozens of state secrecy review projects in connection with the audit work papers requested by the U.S. Securities and Exchange Commission (SEC) as well as Hong Kong Securities and Futures Commission (SFC).
  • Big Four accounting firms on state secrecy and data privacy relating to audit work papers and the mechanism of cross-border securities investigations.
Export Controls and Sanctions

Benefiting from close cooperation with leading global firms, our team is one of the few PRC firms that are able to provide practical advice on export controls and sanctions-related matters. Our services range from the defense of criminal and administrative enforcement by the Chinese government and foreign enforcement agencies in cooperation with foreign counsels to building compliance programs and conducting compliance due diligence.

  • A Chinese high-tech company in its negotiation with the U.S. Department of Commerce (DOC) and dealing with procedures of removal from the Bureau of Industry and Security (BIS) entity list.
  • A large port company in assessment and inspection of its sanction risks and assisting in establishing a compliance system.
  • An international shipping company on sanctions and export control-related issues for its international shipping and port operations in relation to Iran and North Korea sanctions, and assisting in establishing a sanctions and export control compliance system.
  • A well-known Chinese submarine fiber optic cable company on sanctions issues relating to its operations in the Middle East.
  • A leading Chinese automobile manufacturing company on its sanctions risks related to its business in Venezuela.
  • A number of Chinese chip manufacturers on U.S. export control issues, including providing analysis of whether their products, technology or parts are subject to U.S. export control laws.
  • A Chinese investment management company on U.S. export control issues for its proposed investment project.
  • A Chinese asset management company on whether its joint scientific research project with a university might be subject to U.S. export control.
  • A number of Chinese companies and MNCs on legal issues relating to sanctions and export controls.
White-Collar Crime and Corporate Crime

We have many experienced lawyers specializing in white-collar crime and corporate crime. Our team also includes former judges and former prosecutors who have decades of work experience. We are experienced in all stages from the investigation of potential wrongdoing to judicial proceedings. We have successfully persuaded the PSB to investigate and prosecute implicated individuals as well as helping public companies respond to criminal and administrative investigations.

  • A China-based media company in a case involving several executives and employees suspected of infringing citizens’ personal information; and assisting the client in reviewing its business models and providing regular data consulting services in relation to its data products. The executives and employees all successfully obtained bail.
  • A high-profile investment banker in a criminal investigation of suspected financial fraud initiated by the PSB, involving hundreds of thousands of investors, with approximately RMB100 billion allegedly stolen.
  • A leading venture fund in a money-laundering criminal investigation by the PSB. We were able successfully to argue that two partners should be put on probation.
  • A leading real estate company in an internal investigation of embezzlement involving a company executive, and reporting the implicated company executive to the PSB. As a result of our advice, the executive returned more than RMB10 million to the company.
  • A leading technology company in criminal proceedings and civil litigation involving data breach and trade secret infringement.
  • A president of an Internet technology company in Shanghai’s first criminal case for the suspected crime of opening a casino.
  • A leading FMCG company against the smuggling charge relating to the import price under-declaration.
  • A subsidiary of a well-known cinema equipment company against an alleged smuggling charge.
  • A bitcoin trading platform in its internal investigation of potential data theft, and assisting the client to file a criminal case.
  • A pharmaceutical company in response to a PSB investigation of fake fapiao purchases involving more than 40 employees of the company.
  • A world-leading elevator manufacturer in its internal investigations, including advising on a criminal case filing, among other issues.
  • A leading venture capital fund in responding to criminal charges by the PSB for alleged anti-money laundering violations. The client was sentenced to probation and released.
  • A leading U.S. MNC in the technology sector in handling a criminal investigation by the Chinese Procuratorate and internal investigations relating to potential violations of the FCPA, Chinese commercial bribery laws and accounting fraud involving third parties. In recognition of the client’s thorough investigation and full cooperation, both the Procuratorate and the DOJ declined prosecution.
  • A leading hotel management company in the criminal litigation and an investigation initiated by multiple Chinese law enforcement authorities in connection with alleged cybersecurity law violation. We successfully persuaded the PSB to withdraw the criminal case and achieved a positive result for the other investigation.
Administrative Law Enforcement and Litigation

We have extensive experience in dealing with administrative law enforcement and administrative dispute resolution. Our team includes highly-regarded former member of the Committee of Administrative Reconsiderations and former regulators, who have unique insights into administrative enforcement measures. We often help Chinese companies and MNCs communicate with government agencies on regulatory issues, respond to administrative inspections and investigations, manage crises, and represent clients in administrative hearings, reconsideration and litigation procedures. We have handled a large number of complex administrative enforcement cases relating to anti-commercial bribery, financial and securities compliance, cyber security, environmental protection, dangerous goods management, customs, advertisement, product quality, food safety, real estate expropriation and compensation, and urban and rural planning, among other issues.

  • A Fortune 50 company in its various investigations by the Market Regulation Administration (MRA), internal investigations, terminating high-risk third party and other post-investigation dispute cases.
  • An MNC in an investigation by the National Security Bureau. Neither the client nor the executive was penalized.
  • A world-leading coating supplier to settle an investigation by the Tax Bureau and conducting an internal investigation on potential fraud involving third parties in China, resulting in no administrative penalties for the client.
  • A leading hotel management company in the criminal litigation and an investigation initiated by multiple Chinese law enforcement authorities in connection with alleged cybersecurity law violation. We successfully persuaded the Public Security Bureau (PSB) to withdraw the criminal case and achieved a positive result for the other investigations.
  • A leading U.S.-based MNC in a regulatory investigation by the Shanghai Administration for Industry and Commerce relating to potential violations of Chinese commercial bribery and anti-trust laws, which ultimately resulted in no administrative penalties.
  • A leading commercial trading company investigated by a local Administration for Market Regulation (AMR) for alleged violation of Chinese Advertisement Laws.
  • A well-known foreign bank in the regulatory and criminal investigations initiated by the CBRC and the PSB for the alleged misconduct of a former employee.
  • A number of companies in administrative enforcement by the PSB, AMR and other administrative agencies, which ultimately resulted in no administrative penalties.
  • A Fortune 500 company in an investigation by the Shanghai AIC concerning commercial bribery, in which we successfully caused the case escalated to the state AIC and had the AIC abandon further investigation.
  • An MNC in a government investigation involving alleged environmental pollution, negotiating soil remediation and land disposal, and representing the client in related litigations.
  • Senior management of an investment bank in a joint investigation initiated by the Hong Kong SFC and the DOJ and won a favorable result for the client.
Securities Compliance

We have extensive experience in handling administrative investigations conducted by the CSRC and criminal investigations involving potential securities rule violations, as well as negotiating for settlement with the CSRC. Our areas of expertise include handling all kinds of complex securities enforcement cases involving improper information disclosure, insider trading, market manipulation, and professional liability of third party agents. We are also experienced in handling securities civil lawsuits such as false representations.

  • A well-known fund company in handling administrative and criminal investigations by the PSB and the China Securities Regulatory Commission (CSRC) on suspected securities violations.
  • An international accounting firm in handling the administrative investigation by the CSRC on the professional responsibilities of professional institutions and their personnel.
  • An independent director of a listed company in handling the administrative investigation by the CSRC on suspected insider trading.
  • A legal representative of a listed company in handling a criminal investigation and prosecution for suspected illegal information disclosure; and providing legal opinions. The prosecutors decided to drop the charges against the client.
  • A listed company in handling the administrative investigation by the CSRC on suspected illegal information disclosure.
  • A fund company executive in handling the administrative investigation by the CSRC on suspected “rat trading”.
  • An executive director of a PRC-listed company on an inquiry by the CSRC and the PSB relating to potential insider trading and market manipulation activities.
  • A U.S.-listed Chinese multinational conglomerate in a probe initiated by the SEC involving compliance and misrepresentation in cooperation with a top US law firm.
  • The board of directors of a Hong Kong-listed company in proceedings brought against them alleging breach of fiduciary duties, misfeasance and/or misconduct, and related contentious regulatory matters.
  • A number of well-known MNC and Chinese companies on the responsibilities and obligations of listed companies and their directors and executives under PRC and Hong Kong laws.
Environmental Protection

We offer top-quality legal advice on environment, health and safety issues and assist clients in related investigations or litigation proceedings. Our integrated regulatory and litigation team allows us to provide seamless coverage. We have represented clients in handling criminal investigations for the suspected crime of pollution and assisted in negotiating a remediation plan with the government. We assist companies conduct proactive compliance assessments on their health and safety practices and advise them of potential risks.

  • A leading global natural resources company against the charge of smuggling solid waste. We successfully persuaded the prosecutors to drop all the charges against the client and its employees, which is very rare in the Chinese judicial system after the detention and arrest of the individuals.
  • A U.S. multinational private equity firm in handling a criminal investigation and criminal proceeding initiated by the PSB for pollution charges against its Chinese subsidiary.
  • A multinational company in a government investigation of environmental pollution and negotiating soil remediation and land disposal, and representing the client in related litigations.
  • A global leading environmental protection company in an administrative lawsuit against the decision made by an environmental protection bureau in Xinjiang.
  • A water resource management MNC in an administrative reconsideration on the decision of an environmental protection bureau to impose an administrative penalty on its air emissions.
  • A world-renowned MNC in the chemistry sector on the emission of volatile organic compounds.
  • A new energy MNC on the pollution discharge permits and environmental protection responsibilities.
  • A world-leading manufacturing company headquartered in the United States in handling green land investment in Jiangsu, as well as soil pollution assessment and remediation related to its production plant in Shanghai.
  • A well-known German water resources management company in bidding, investment, construction and financing of sewage treatment projects in China.
  • A well-known US sustainable energy company on its portfolio of power generation and energy conversion facilities in China.
Global Compliance

As a growing number of Chinese companies expand their businesses beyond China they encounter an increasingly complex global regulatory environment. We help Chinese clients identify areas of compliance risk based on their business and regulatory risk profile of the country in which they operate. We are frequently consulted by clients in selecting the right foreign counsels and provide comprehensive compliance services to clients going global.

  • A Chinese SOE on identifying its global compliance risks and establishing its global compliance system.
  • A number of U.S.-listed Chinese companies on updated data protection and anti-corruption trends in multiple jurisdictions worldwide and providing practical advice for the clients’ global operations and risk controls.
  • A number of Chinese companies in inquiries by the DOJ, the SEC, the DOC, and the U.S. Department of Homeland Security, among many.
  • A Chinese enterprise in response to an investigation initiated by the government of Pakistan, resulting in no penalties for the client.A well-known China-based company in establishing and improving its global data compliance system, establishing a global data network and operating mechanism (such as data localization and cross-border transfer), advising the client on various data issues relating to its products and services in the global markets, assisting it to deal with various global emergencies (such as data leaks, government investigations, and inquiries) and conducting data compliance due diligence in various investments, and responding to comprehensive data compliance reviews by business partners, such as Facebook.
  • A China-based U.S.-listed company in its data compliance due diligence for a potential investment of a logistics group and its post-merger compliance integration. The due diligence was conducted based on PRC data protection laws and the GDPR.
  • A leading dairy product manufacturer on its global compliance program and providing training.
  • A leading bus company on sanction and data privacy issues in the EU, Central and South America and Africa and providing training.
  • A China-based healthcare as the company’s global counsel, providing advice from multiple legal perspectives for its expansion of medical services in several Asian countries.
  • Several Hong Kong-listed Chinese SOEs on anti-corruption, sanctions, outbound investment and product safety issues, and conducting compliance inspection to help the companies establish compliance systems in accordance with requirements of the SASAC.
  • A Chinese high-tech company in its negotiation with the U.S. DOC and dealing with procedures of removal from the BIS entity list.
  • A well-known Chinese submarine fiber optic cable company on sanctions issues relating to its operations in the Middle East.
  • A leading Chinese automobile manufacturing company on its sanctions risks related to its business in Venezuela.
  • A number of Chinese chip manufacturers on U.S. export control issues, including providing analysis of whether their products, technology or parts are subject to U.S. export control laws.