Commercial bribery trends and enforcement insights from the Chinese courts: what companies need to know in 2026

Shanghai, China’s financial hub, has long been among the most active regions in the country in enforcing anti-commercial bribery laws. At the end of 2025, the Shanghai No. 2 Intermediate People’s Court (Shanghai No. 2 IPC, or the court) released a report on commercial bribery trials from 2020 to 2024. The Shanghai No.2 IPC is an intermediate-level court within China’s judicial system, and has jurisdiction over nine of Shanghai’s 16 districts.

While the commercial bribery cases tried within the jurisdiction of the Shanghai No. 2 IPC do not reflect the nationwide situation, its white paper remains a valuable resource for companies - particularly those operating in Shanghai and its surrounding areas - to understand enforcement trends and judicial perspectives on such offenses.

Commercial bribery under Chinese law occurs when an individual or entity offers money or other valuables to another party in order to obtain business opportunities or competitive advantages. Under PRC law, commercial bribery may result in both administrative and criminal enforcement, and the court’s report focuses on criminal enforcement.

Methods of commercial bribery are becoming increasingly complex and covert

According to the report, methods of bribery are becoming increasingly complex and covert. New forms of bribery have emerged as traditional corruption involving direct acceptance of valuables is declining, with offenders increasingly disguising illegal power-for-money exchanges as seemingly legitimate civil or business transactions, including loans, salaries, property deals and stock trades.

Direct contact and exchange of valuables are now giving way to more concealed practices, where those receiving bribes hide behind intermediaries such as relatives or close associates to communicate and receive benefits. The court also pointed out that third-party intermediaries played key roles in facilitating commercial bribery. 

While these evolving bribery methods pose challenges for law enforcement, they create even greater challenges for companies conducting internal investigations. Compared with enforcement authorities, companies have more limited investigative tools and restricted ability to obtain information from third parties, often requiring highly experienced teams and meticulous planning to achieve effective results.

More enforcement against bribe takers than bribe givers, but this trend is expected to change

According to the report, the crime of accepting bribes by non-state functionaries accounted for 49.49% of the reviewed cases, while bribing non-state functionaries represented only 13.51%. A similar pattern emerges in cases involving state functionaries: statistical data from the Shanghai No. 2 IPC indicated that cases of accepting bribes by state functionaries accounted for 24.59%, whereas cases of bribing state functionaries comprised only 7.4%. These comparisons suggest that between 2020 and 2024, within the jurisdiction of the Shanghai No. 2 IPC, criminal enforcement against commercial bribery focused more on bribe takers than on bribe givers, in both the private and public sectors.

However, we expect this trend to change in the future. In recent years, the principle of ‘investigating both bribe-taking and bribe-giving’ has become a key anti-corruption initiative in China, as bribe givers are increasingly recognised as a major driver of corruption cases. If they are not penalised, the effectiveness of anti-corruption efforts may be compromised.

Commercial bribery is concentrated in certain industries, with the internet emerging as a new breeding ground

The court observed that commercial bribery cases are most prevalent in industries such as construction, finance, trade and business services, the internet, real estate, advertising, and catering. These sectors together accounted for 60.68% of the 351 cases reviewed. It further noted that the internet is increasingly becoming a breeding ground for such misconduct. In today’s digital era, online traffic has become a core resource: companies compete for it to boost profits, while employees at internet firms who control traffic-related privileges such as allocation, data access and ranking recommendations often exploit these advantages for illicit gain.

In addition to the industries identified by the court, the medical sector is also vulnerable to commercial bribery in China and has long been subject to strict regulatory oversight and rigorous anti-corruption enforcement.

Risk management and compliance

The Chinese government has consistently flagged anti-corruption as a priority for law enforcement efforts. To prevent potential commercial bribery risks, companies should continue to implement an effective anti-corruption program tailored to Chinese laws and business practices. This should include conducting risk assessments, establishing or improving policies, performing internal compliance audits, and providing training to employees and third-party partners.

It is also essential to offer clear reporting mechanisms and foster a healthy speak-up culture. When a potential issue is identified, companies should timely carry out internal reviews or investigations and implement remedial measures.

With the increasing complexity and covert nature of commercial bribery methods, companies may consider adopting AI tools to assist with daily compliance monitoring and internal investigations, enabling efficient handling of large volumes of data and improving review quality.