Krishnamoorthi Warns U.S. Companies Not To Bribe Officials in China In The Wake Of Executive Order Pausing Foreign Corrupt Practices Act Enforcement

WASHINGTON, D.C. – Ranking Member Raja Krishnamoorthi of the House Select Committee on the Strategic Competition Between the U.S. and the Chinese Communist Party (CCP) sent a letter to the American Chamber of Commerce in China warning its member companies that Congress will investigate any violations of the Foreign Corrupt Practices Act (FCPA) in the absence of Department of Justice enforcement.

The FCPA was enacted by Congress in 1977 to prevent U.S. businesses from bribing foreign officials. The Department of Justice has historically robustly enforced this statute, issuing massive fines against large U.S. companies doing business in China that bribe CCP officials or engage in other corrupt acts. 

On February 10, 2025, the White House issued an executive order “direct[ing] the Attorney General to pause FCPA actions until she issues revised FCPA enforcement guidance.” This includes “ceas[ing] initiation of any new FCPA investigations or enforcement actions, unless the Attorney General determines that an individual exception should be made.” The initial pause is 180 days. 

In his letter, Ranking Member Krishnamoorthi notes that “any company contemplating relying on the recent executive order to loosen internal policies or procedures regarding improper payments to government officials in the PRC should think twice. Not only does the FCPA provide for a five or six year statute of limitations depending on the nature of the offense, which outlasts any pause triggered by the executive order, but Congress also will not tolerate any corruption by U.S. companies in the PRC. Should an American business decide to try to take advantage of this pause in FCPA enforcement, they should not be surprised to hear from Congress.”

The letter is available HERE.