The Secretary-General of the Communist Party of China (“CPC”) announced, during the opening speech of the 19th National Congress of the CPC, the launch of the new anti-corruption regime – the National Supervision Commission (“NSC”).  

Higher in the hierarchy of the power, the NSC is to concentrate some of the anti-corruption and supervision functions of the existing administrative bodies (such as the National Bureau of Corruption Prevention (NBCP) and the Ministry of Supervision) and judicial powers (such as the anti-corruption department of the People’s Prosecuting Institute).

With the aim to have the overall coverage, the NSC will put all of the personnel who exercise public power under its supervision including those from the administrative, legislative, judicial organizations as well as state-owned enterprises and entities.

The NSC will supervise the state personnel and discharge the functions of inspection, investigation and case-handling in relation to almost all of the possible power-related misconducts (such as abusing of power, dereliction of duties) and crimes (such as embezzlements, bribery, frauds, misappropriations and waste of state assets).  

The NSC has the power of personnel interview, interrogation, inquiry, investigation, assets freezing, evidence review, sealing and impounding (of evidence or assets), searching, survey & examination, forensic recovery and examination as well as liuzhi.

The close translation of liuzhi or liu zhi (留置) could be compulsory detention, which however is not as exactly as the temporary deprivation of the freedom for administrative punishment or criminal procedure.  It is similar to notorious shuanggui or shuang gui (双规) (a temporary freedom-depriving practice that required a CPC member under investigation to cooperate with questioning at a designated place and a designated time).  However, liuzhi could be used under a broader circumstance such as handling of a misconduct vis-à-vis a crime.  What is worrying, liuzhi could be applied to governmental officials (e.g., those who take bribes) as well as non-governmental officials (e.g., those who give bribes).  Access to lawyers as well as other rights could be limited.

Licensed to practice law in China and the New York State of the USA., Henry Chen is a senior partner of Beijing Dacheng Law Offices, LLP (Shanghai) (AKA Dentons Shanghai Office).  Henry was the former AP Compliance Director of Ford Motor Company.  Henry is the author of Risk Management of Commercial Bribery in China.  Henry is available at Henry.chen@dentons.cn