China's Supreme People's Procuratorate announced on Tuesday that it will bolster legal protections for enterprises by punishing crimes that infringe on companies' lawful rights and interests, aiming to foster a better rule-of-law business environment.
Ahead of the first anniversary of the law promoting the private economy on Wednesday, the SPP released a series of typical cases addressing common legal issues in business operations, such as internal corruption, contract fraud, embezzlement, and bid rigging. These cases underscore the procuratorial efforts to support high-quality economic and social development, the SPP stated.
The SPP emphasized the dual focus on punishment and supervision. Procuratorial organs have been active in punishing crimes against enterprises, correcting wrongful judgments, strengthening filing supervision, tracing criminal activities, and helping companies address management weaknesses through recommendations.
One highlighted case involved an electrical appliance company in Zhuhai, Guangdong province. From 2016 to 2023, 48 employees, including key figures such as an operations director and a senior supply chain manager, allegedly formed criminal groups to embezzle and steal products through false claims and theft. The stolen goods, valued at over 100 million yuan ($14.71 million), were sold to 21 buyers.
Prosecutors acted swiftly to minimize the company's losses by urging police to seize and freeze assets linked to the suspects. In July 2023, public prosecutions were filed, resulting in prison sentences for 35 defendants, with terms ranging from eight years to eight months, and fines between 5,000 yuan and 500,000 yuan.
Following appeals, the Zhuhai Intermediate People's Court upheld the eight-year sentence for the operations director and ordered repayment of 5.97 million yuan. Rulings for other appellants have also been finalized.
The SPP highlighted the importance of foreign investment in China's modernization and economic collaboration with the world. It stressed the need for equal protection of foreign-funded enterprises' rights and the creation of a stable, transparent, and fair market environment.
Prosecutors are also urged to identify management issues in enterprise-related cases, helping companies improve systems and reduce costs for stable development. The SPP aims to trace criminal activities across the whole chain and strengthen filing supervision to combat corporate crime effectively.
