China toughens penalties for dishonesty in overseas deals

BEIJING - China will strengthen supervision of businesses involved in cross-border economic activities, an official document said.

Dishonest businesses will face restrictive measures on loan guarantees, insurance rates, bidding and procurement, according to guidelines issued recently by 28 government departments including the National Development and Reform Commission (NDRC).

Sectors under scrutiny include overseas trade, investment and financial cooperation.

Taking outbound investment as an example, discreditable behavior includes breaking approval rules, falsifying information and cheating on capital transfers.

A credit record will be set up, with credit-loss corporate activities tracked and published.