China

JunHe LLP | English | AcademicThink | Jan. 23, 2026 | Regulation

On January 20, 2026, a practical seminar on the World Bank’s newly revised "Integrity Compliance Guidelines" was successfully held, supported by the Expert Committee of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products and jointly hosted by JunHe Law Offices and Tianjin University's International Engineering Management School. The seminar concentrated on the World Bank’s December 2025 updates to the guidelines and common compliance errors among Chinese companies, gathering key representatives from the World Bank’s core investigation and compliance departments, compliance leaders from Chinese enterprises, and senior lawyers from multilateral development banks. The event aimed to provide a precise, in-depth compliance empowerment platform for Chinese companies involved in World Bank-financed projects.

The seminar was chaired by JunHe partner lawyer Zhou Xianfeng and featured welcome speeches from JunHe director Hua Xiaojun, China Chamber of Commerce deputy chairman Zheng Chao, and Tianjin University professor Zhang Shuibo. They collectively emphasized that multilateral development bank compliance standards form a critical foundation for improving Chinese companies' compliance levels in the current international market environment.

Key highlights included authoritative presentations from three core World Bank departments. Anthony Pan from the Integrity Compliance Office detailed critical updates in the new guidelines, including management responsibilities, technology usage compliance, accessibility of policies and records, anti-retaliation protections, and regulations on donations and sponsorships. Xuan Luo from the Integrity Vice Presidency addressed frequent compliance risks faced by Chinese companies in World Bank projects such as conflicts of interest, commissions, subcontracting, key personnel changes, and fraudulent disclosures, clarifying standards for collusion and corporate liability for employee misconduct. Chang Liu from the Office of Suspension and Debarment explained the World Bank’s sanctions framework, covering prohibited misconduct, recent case data, sanction measures, aggravating and mitigating factors, and cross-sanctions, providing a comprehensive overview of the system.

In a practical sharing session, JunHe partner Liu Zhen highlighted seven common misconceptions Chinese companies have about World Bank compliance requirements and offered actionable advice informed by recent policies and case examples. The closing session featured in-depth analyses on compliance system establishment and implementation from Yang Songlin, Chief Legal Counsel and Chief Compliance Officer of China Power Engineering Corporation, and Liu Yufei, Deputy Director and Acting General Manager of Compliance Management at China Power Construction Group International Engineering Company, enriching attendees with valuable insights.

JunHe’s experienced legal team continues to provide comprehensive compliance legal services to Chinese companies engaged in multilateral development bank projects, including risk assessments, internal investigations, audit cooperation, compliance system construction, and sanction lifting. The seminar reinforced JunHe’s commitment to supporting Chinese enterprises with multi-level compliance solutions as they expand globally.

Xinhua | English | News | Jan. 23, 2026 | Accidents

Eight individuals who were previously missing after a steel plant explosion in Inner Mongolia have been confirmed dead, increasing the total death toll to 10. The victims were found without vital signs following extensive search and rescue efforts at Baogang United Steel's plate plant in Baotou City.

The explosion occurred on January 18 and involved a 650-cubic-meter saturated water and steam spherical tank. In addition to the fatalities, 84 people were injured, all of whom remain in stable condition. Over 1,000 personnel from various government departments participated in the rescue operation.

Authorities have initiated a city-wide inspection to identify hidden workplace safety risks. Public security officials have taken legal actions against those responsible within the company. An ongoing thorough investigation is examining the cause of the accident.

China Daily | English | News | Jan. 23, 2026 | UndeterminedBizdev-Partnering

Chinese companies are shifting from a traditional overseas expansion model focused on exporting products and achieving scale to one emphasizing deep localization, digital integration, and service differentiation. This strategic shift aligns with China's growing outbound direct investment, which increased 6.9 percent year-on-year to $158.21 billion in the first 11 months of 2025, with non-financial investments covering 153 countries and regions. The key transformation lies in how Chinese firms operate abroad, moving toward "high-quality globalization" characterized by stronger operational depth, governance, and local integration.

In consumer sectors, experience gained in China's competitive domestic market, especially in digital execution and user engagement, is becoming a competitive advantage overseas. Trip.com Group exemplifies this by prioritizing service differentiation, offering 24-hour customer support in 35 languages with over 20,000 agents worldwide, which has driven triple-digit growth. Granular localization, such as tailoring services to local preferences like smart toilet features for Japanese users, has strengthened user stickiness and market performance.

Chinese brands are also leveraging digital technology to embed themselves into daily life abroad, moving beyond mere exposure to integrating within consumers' cultural contexts through coordinated data, technology, and content strategies. For example, Govee, a smart home brand, effectively used programmatic advertising in the U.S. to boost purchase intent and outperformed social media advertising in conversion rates. Despite these advances, challenges remain in brand recognition, as shown by Beijing Ultrapower Software, which relies heavily on overseas revenue but struggles with global brand awareness, with users often recognizing products without knowing the brand or country of origin.