Highlights
- China's draft Anti-Cross-Border Corruption Law covers Chinese firms abroad, foreign firms in China, and conduct involving Chinese officials or state entities.
- Article 26 could bar foreign entities from conducting law-enforcement activities in China without approval, creating conflicts with U.S. FCPA and sanctions enforcement.
- Rare earth supply chains involving state-owned enterprises, joint ventures, and government permits face heightened jurisdictional compliance risk.
- The draft includes potential countermeasures if Beijing views foreign anti-corruption actions against Chinese entities as discriminatory.
- Legal jurisdiction is emerging as a new supply-chain risk variable for critical-mineral investors alongside tariffs and export controls.
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