The Discussion On FCPA Risk In Cross-border Merger And Acquisition For Chinese Companies And Its Solutions

Anti-corruption is recently a hot topic.The United States strengthened the FCPA law enforcement and some other countries also introduced anti-corruption related laws and regulations while China is implementing its “One Belt One Road” strategy by increasing the pace of overseas investment.Chinese enterprises will for certain encounter the anti-corruption risk in the process of going out,among which Foreign Corruption Practices Act(FCPA)is the biggest risk given due to its severe penalty and high fines.The corruption issue involved in mergers and acquisitions has been a recent focus of FCPA enforcement.If the acquirer fails to detect the existence of corruption violations by the target company,it is likely to suffer from extremely serious legal and economic consequences.However,with the question that how FCPA could regulate Chinese companies as a foreign law,this paper compares different laws and regulations in different countries with FCPA and attempts to clarify the way of its application and impact of Chinese enterprises' overseas mergers and acquisitions.It also tries to provide solution for the Chinese enterprises to cope with the anti-corruption risks.