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2008/SOM1/ACT/005
Agenda Item:5
Compilation of Each Economy’s Progress, Successes and Milestones - China
Purpose: Consideration
Submitted by: China
/ 6thAnti-Corruption and Transparency Task Force MeetingLima, Peru28-29 February 2008
AntiCorruptionand Transparency (ACT) TASK FORCE
COMPILATION OF EACH ECONOMY’S PROGRESS, SUCCESSES AND MILESTONES:
SANTIAGO COMMITMENT
APEC ANTICORRUPTION & TRANSPARENCY (act) cOURSE OF ACTION
BUSAN DECLARATION
HANOI ROAD MAP (TBD, 2006-2007)
DRAFT: 11 June 2007
PREPARED BY THE FRIENDS OF THE ACT TASK FORCE CHAIR
AntiCorruptionand Transparency (ACT) TASK FORCE
ACTIONS
CAPACITY-BUILDING PROJECTS
KEY CONTACTS AND WEBSITES
Preliminary Drafts to Be Presented at SOM III ACT Task Force Meeting
(Completed Drafts to Be Presented in 2007)
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APEC ACT TASK FORCE – COUNTRY REPORT [APECECONOMY 1]
(Santiago Commitment and APEC Course of Action, 2004)
Specific Actions / Status to-date (June 2007)
including on-going measures started but not yet completed / Future Action to achieve goal and any further measures being considered to enhance action
On Dec10 2003, China signed the convention in Mexico.
The Convention was ratified by the National People’s Congress on Oct 27, 2005.
The Chinese Government submitted to the UN Secretary-General the letter of ratification and government declaration on Jan 13, 2006. By then, the Chinese Government completed the legal procedure of acceding to the convention.
An inter-ministerial coordination mechanism was set up for an integrated study and implementation. The Ministry of Supervision is the main leading department. / Originally composed of 15 departments,the mechanism has expanded to involve 24 departments. All the major issues relating to the implementation of convention are decided and carried out by this coordinating mechanism.
In June 2006, through this mechanism, the Ministry of Supervision laid out a plan for the necessary work to make the national legal system compatible with the convention. / The work includes the adoption of measures for the prevention of corruption, revision of the Criminal Law and Criminal Procedure Law, drafting of Anti-Money Laundering Law and the Law on legal assistance and the international cooperation to combat corruption. In order to complete these work on time, the Ministry of Supervision has taken two measures, one is to designate leading department and supporting departments and set up the system of accountability; the other is to draw up an annual schedule for each undertaking and priority, to facilitate regular check.
The Standing Committee of NPC has revised the Criminal Law to meet the provision of the convention including making the crime of bribery and embezzlement the upstream crime of money-laundering, revised the legal requirement for the crime of taking and accepting bribes, corruption and misappropriation.
The Law on Anti-money Laundering was endorsed on Oct 31, 2006 and entered into force on Jan 1, 2007.
The National Corruption Prevention Bureau was set up in Sep 2006 in accordance with the requirement of the Convention. / It is an agency directly under the State Council responsible for organization, coordination, integrated planning, policy formulation, inspection and guidance of the national corruption prevention work; Responsible for the coordinating and guiding enterprises, institutions, social organizations, intermediary organizations and other social organizations in combating corruption; Responsible for international cooperation and assistance work in the prevention of corruption. This organization is the first of its kind ever established at the national level to prevent corruption, an important milestone for the development of practice and theoretical innovation in the prevention of corruption in our country and symbolizes a new stage in China’s prevention of corruption.
On Oct 22-26 2006, 1,000 participants from 137 countries/regions attended the First Annual Conference and General Meeting of the International Association of Anti-Corruption Authorities. The conference focused on the implementation of UNCAC.
Action II. Strengthen Measures to Effectively Prevent and Fight Corruption and Ensure Transparency by Recommending and Assisting Member Economies to:
(Santiago Commitment and APEC Course of Action, 2004)
Specific Actions / Status to-date (June 2007)
including on-going measures started but not yet completed / Future Action to achieve goal and any further measures being considered to enhance action
The Ministry of Supervision assisted the Government Inspectorate of Vietnam in training Vietnam inspectors on the theme of government ethics.
Action III. Deny Safe Haven to Officials and Individuals Guilty of Corruption:
(Santiago Commitment and APEC Course of Action, 2004)
Specific Actions / Status to-date (June 2007)
including on-going measures started but not yet completed / Future Action to achieve goal and any further measures being considered to enhance action
The Ministry of Supervision with the US Department of State successfully cosponsored the APEC Anticorruption Workshop on the theme of “Denial of Safe Haven: Asset Recovery and Extradition” in Apr, 2006. / The Ministry of Supervision and the US Department of States have decided to strengthen international cooperation including exchange of information and evidence, extradition, and search, seizure, forfeiture and repatriation of assets.
Action IV. Fight Both Public and Private Sector Corruption:
(Santiago Commitment and APEC Course of Action, 2004)
Specific Actions / Status to-date (June 2007)
including on-going measures started but not yet completed / Future Action to achieve goal and any further measures being considered to enhance action
A central leadership office for combating commercial bribery was established and located at the Ministry of Supervision.It made overall arrangement in 2006 for combating bribery in business transactions targeting at the areas of project construction, land transfer, property rights transaction, government procurement, medicine purchase & sales, resource development and sales. Some typical bribery cases were strictly dealt with. / 49 industries, sectors and 2.6 million enterprises and institutions have made self-examination and self -correction to find out and redress by themselves their misconducts and problems.
The long-term mechanisms for preventing bribery have been established.
In 2006, the Standing Committee of the People’s Congress adopted the Amendment VII to the Criminal Law, which expands the scope of commercial bribery crime, and also adopted the Law on Anti-money Laundering, providing legal basis for effectively cracking down bribery crime and preventing the transfer of illegal fund.
Action V. Public-Private Partnerships:
(Santiago Commitment and APEC Course of Action, 2004; Busan Declaration)
Specific Actions / Status to-date (June 2007)
including on-going measures started but not yet completed / Future Action to achieve goal and any further measures being considered to enhance action
Two new taskforces were created in 2006. One aimed to evaluate government performance, while the other dealt with the administration of the taxi industry. One of the features of the taskforce was to rely on the citizenry to supervise the behavior of government. / According to the analysis of the questionnaire survey of the National Bureau of Statistics, in the first half of 2007, the satisfaction of the masses for the anti-corruption work is 64.4%, up 12.5 percentage points over 2003; The recognition for the anti-corruption work is 87.4%, increasing by 10.9 percentage points over 2003; the degree of concern for combating corruption and building a clean government drops from No. 3 in 2003 to No. 8.
The State Council departments and local governments above the county level most established the portal websites, developed a directory open administration, and generally establish a government news release. In May 2007, the State Council promulgated the The Regulations on Open Government Information of People's Republic of China which made clear regulations on main body, scope, contents, forms and procedures for the government’s information disclosure, established the active disclosure and application disclosure systems, public release system, public supervision and guarantee systems of government information enabling China’s open administration to gradually go onto a legal track. / Currently, 55 departments of China's State organ shave established leadership and office organizations for administration openness, 36 departments have made regulations on publicity of governmental affairs, 10 departments and units have set up administrative service hall, 75 departments and units have established news release systems and the Internet websites, and 12 departments have compiled or have been compiling the contents for publicity of governmental affairs.
To actively promote public institutions to handle affairs openly, county-level above hospitals nationwide have generally carried out open hospital affairs; more than 95% of the country’s colleges and universities and over 90% of the primary and secondary schools have carried out the publicity of school affairs.
Action VI. Cooperation Among APEC Member Economies to Combat Corruption and Ensure Transparency in the Region:
(Santiago Commitment and APEC Course of Action, 2004)
Specific Actions / Status to-date (June 2007)
including on-going measures started but not yet completed / Future Action to achieve goal and any further measures being considered to enhance action
The Ministry of Supervision with the US Department of State successfully cosponsored the APEC Anticorruption Workshop on the theme of “Denial of Safe Haven: Asset Recovery and Extradition” in Apr, 2006. / The Ministry of Supervision and the US Department of States have decided to strengthen international cooperation including exchange of information and evidence, extradition, and search, seizure, forfeiture and repatriation of assets. / China and the US plan to cosponsor the APEC Anticorruption workshop on corruption prevention in 2008.
In Jun and in Aug 2007, the 6th Sino-US JLG meeting and the third JLG anti-corruption expert group meeting were held in Beijing and Washington respectively in which China and the US exchanged views in depth on how to improve bilateral anti-corruption cooperation framework and cooperation in some specific cases. The meetings achieved positive results.
In Jan 2007, the Chinese delegation attended the OECD Anti-Bribery Convention performance evaluation meeting in Paris, France in an observer capacity.
In Nov 2007, the Chinese delegation attended the 10th Anniversary of the Adoption of the OECD Anti-Bribery Convention meeting in Rome.
The Ministry of Supervision and the Canadian International Development Agency (CIDA) are negotiating the launch of a Cooperation Project on Corruption Prevention.
On Oct 22-26 2006, 1,000 participants from 137 countries/regions attended the First Annual Conference and General Meeting of the International Association of Anti-Corruption Authorities. The conference focused on the implementation of UNCAC. / The Second Annual Conference and General Meeting of the International Association of Anti-Corruption Authorities will be held in Nov 2007 inIndonesia.
Action VII. Moving Forward (from Santiago to Seoul and from Hanoi to Sydney):
(Santiago Commitment and APEC Course of Action, 2004, modified; Busan Declaration and AMM Statement)
Specific Actions / Status to-date (June 2007)
including on-going measures started but not yet completed / Future Action to achieve goal and any further measures being considered to enhance action
China will pursue the principle of fighting corruption in a comprehensive way, addressing both its symptoms and root causes, and combing punishment with prevention, with the emphasis on prevention. The measures are:
- Strengthening education on ideals, beliefs and clean government;
- Improving the work style of leading officials and leading bodies in an all-round way;
- Effectively solving prominent problems that harm the public interest;
- Focusing on promoting reform and institutional building;
- Intensifying restrictions on and supervision of the use of power;
- Maintaining efforts in case investigation and handling.
KEY ANTICORRUPTION CONTACTS:
Name / Title / Address / E-Mail
CURRENT ANTICORRUPTION PROJECTS OR CAPACITY-BUILDING NEEDS:
Name of Project / Donor Partners / Desired Outcomes / Status
KEY GOVERNMENT WEBSITES (ANTICORRUPTION):
2004 SANTIAGO COMMITMENT
Santiago, Chile21 November 2004
The APEC Leaders commit to fight corruption and promote transparency.
Corruption is a complex economic, political and social problem with destructive repercussions in every sphere of our societies. Corruption threatens democracy and economic growth, the integrity of our institutions and our social values. As the World Bank has noted, the direct costs of bribery alone to national economies is over one trillion dollars each year.
Corruption is found in both the public and private sectors. A comprehensive approach is required.
Good governance, transparent legal regimes and systems to fight corruption are vital elements to nurture and sustain economic development, growth, and prosperity.
The APEC Leaders highlight the important role of the United Nations Convention against Corruption as the first legally binding global instrument specifically targeted to fight the scourge of corruption.
Accordingly, to fight corruption and ensure transparency, the APEC Leaders decided on a course within the framework of the principles and provisions of the United Nations Convention against Corruption.
APEC Leaders agreed to:
- Encourage each other to deny safe haven to officials and individuals guilty of public corruption, those who corrupt them, and their assets;
- Promote regional cooperation on extradition, mutual legal assistance and the recovery and return of proceeds of corruption.
- Work toward implementation of punitive and preventive anticorruption policies and practices consistent with the UN Convention Against Corruption, including those policies and practices necessary for the proper and effective management of public affairs and public property;
- Intensify our individual and joint actions to fight corruption and ensure transparency, including cooperation with other multilateral and regional intergovernmental institutions and exchange of information on implementation of domestic anti-corruption commitments;
- Develop innovative training, targeted- capacity building and results-oriented technical assistance to fight corruption and ensure transparency; and
- Implement the APEC Transparency Standards, a key to both the fight against corruption and progress on the WTO Doha Development Agenda.
By working together, Leaders are confident that APEC can make a difference to fight corruption and ensure transparency, and can cut the cost of corruption to our economies and create a culture of integrity and shared prosperity.
2004 APEC Course of Action Encapsulated in Actions I-VII Above.
2005 BUSAN DECLARATION AND AMM STATEMENT
2005 Busan APEC Leaders’ Declaration (Anti-Corruption):We agreed to intensify regional cooperation to deny a safe haven to officials and individuals guilty of corruption, those who corrupt them and their illicitly-acquired assets, and to prosecute those engaged in bribery, including in international business transactions. We further agreed that the implementation by our relevant economies of the principles of the United Nations Convention against Corruption can have a positive impact in advancing our commitment towards a cleaner and more honest and transparent community in the Asia-Pacific region. We welcomed the signing of the ABAC Anti-corruption pledge by the CEOs at the APEC 2005 CEO Summit and encouraged public-private partnership in this campaign.
2005 AMM Statement (Anti-Corruption):
Ministers recognised that APEC's goal of economic prosperity could not be achieved unless corruption, both in the domestic economies and in international business transactions, was effectively addressed and those individuals guilty of corruption were denied a safe haven.
Ministers agreed that corruption undermined economic performance, weakened democratic institutions and the rule of law, disrupted social order, destroyed public trust and provided an environment for organised crime, terrorism and other threats to human security to flourish. As it is one of the largest barriers to APEC's road to free trade, to increase economic development and to greater prosperity, Ministers reaffirmed that they would continue to look for avenues to effectively address this important issue within APEC as well as in other fora.
Ministers welcomed the outcomes of the APEC Anti-Corruption and Transparency Symposium (ACT Symposium) and urged greater action to combat corruption and to improve transparency. They applauded Korea for hosting the ACT Symposium and commended the APEC Anti-Corruption and Transparency (ACT) Task Force for beginning its important work. Ministers stressed the importance of capacity building programs and encouraged member economies to develop and submit capacity building projects in support of APEC works in transparency as well as in anti-corruption.
Ministers encouraged all APEC member economies to take all appropriate steps towards effective ratification and implementation, where appropriate, of the United Nations Convention Against Corruption (UNCAC). Ministers encouraged relevant APEC member economies to make the UNCAC a major priority. They urged all member economies to submit brief annual progress reports to the ACT Task Force on their APEC anti-corruption commitments, including a more concrete roadmap for accelerating the implementation and tracking progress. Ministers also encouraged the ACT Task Force to continue closer coordination with the APEC CTI and all other relevant APEC sub-fora.
Ministers welcomed the anti-corruption pledge that would be made by CEOs at this year's APEC CEO Summit and encouraged continued collaboration between the APEC ACT Task Force and ABAC. Ministers welcomed the private sector's call for a synergistic collaboration with the ACT Task Force to improve corporate governance and seek to strengthen this important public-private partnership. Ministers pledged to intensify regional cooperation to deny a safe haven to officials and individuals guilty of corruption, and encouraged greater cooperation in the areas of mutual legal assistance, where appropriate, extradition, asset recovery, and forfeiture of the proceeds of corruption. Accordingly, Ministers supported greater cooperation and information exchange among member economies as well as the sharing of expertise and experiences and supported capacity building on the denial of a safe haven, the UNCAC implementation, anti-bribery best practices, anti-corruption and SMEs, and other relevant areas including those as recommended in the ACT Course of Action (COA).
Ministers agreed to continue APEC's collective efforts to promote good governance, integrity, and transparency, as they were indispensable to APEC members' aspirations for a more secure and prosperous community in the Asia-Pacific region and beyond.
Ministers reiterated the importance of fulfilling the APEC Transparency Standards and the area-specific Transparency Standards. They welcomed the first comprehensive submission of IAP reports on the implementation of Transparency Standards, as formulated at APEC Los Cabos and Bangkok Leaders' Meeting in the Leaders' Statement to Implement Transparency Standards.
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