China urges state firms to guard against overseas corruption

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China’s corruption watchdog on Monday urged its state-owned enterprises (SOE) to guard against the risk of corruption in their overseas entities, saying it was a key task of every company’s Communist Party cell.

The Central Commission for Discipline Inspection said it had published guidance instructing state firms to deal with such risks that could arise from their overseas personnel and decision-making, a necessary step that comes as state-owned firms invest and expand their businesses overseas under the Belt and Road initiative.

“Party committees and discipline inspection groups at every state enterprise must stick to the highest standard of Communist Party discipline and deeply understand the importance urgency of controlling overseas risks,” it said in a statement on its website.

The aim was to “ensure the safety of China’s assets, make our state enterprises strong and excellent, and cultivate world-class enterprises that are globally competitive,” it said.

China’s wide-ranging crackdown on corruption has largely focused on the domestic operations of its state-owned enterprises, rather than their overseas activities.

Guarding against corruption and stepping up oversight of investments and operations overseas directly correlates with the smooth and successful execution of China's Belt and Road campaign as well as the current Go Out Policy, the guidelines explained.