On July 25, 2023, the fourth meeting of the Standing Committee of the 14th National People's Congress (NPC) initially considered the draft amendment (XII) to the Criminal Law. The draft amended and supplemented a total of seven articles of the Criminal Law, with a strong emphasis on punishing corruption by insiders of private enterprises. Articles 165, 166 and 169 of the Criminal Law provide for the crimes of illegal operation of similar businesses by relevant personnel of state-owned companies and enterprises, the crime of making illegal profits for relatives and friends, and the crime of discounting or selling state-owned assets at a low price for favoritism and malpractice, respectively. This amendment adds a paragraph to each of the above three articles, extending the existing crimes applicable to relevant personnel of "state-owned companies and enterprises" to private enterprises, and also investigating the criminal liability of the insiders of private enterprises who have the abovementioned corresponding behaviors and who intentionally harm the interests of private enterprises, resulting in significant losses, so as to further increase the protection of property rights and entrepreneurs' rights and interests of private enterprises, and strengthen the protection of property rights and entrepreneurs' rights and interests of private enterprises, as well as to strengthen the protection of the rights and interests of private enterprises. And entrepreneurs rights and interests of private enterprises to strengthen the protection of private enterprises equal protection.

Liu Lijie lawyer and his team in a series of private enterprise anti-fraud case handling concern, for a long time, the private enterprise will internal personnel backing behavior as internal fraud, mainly based on the "company law", the company's internal rules and regulations, etc., leading to the private enterprise internal personnel of the rule of law awareness is weak, wrongly believe that backing damage to the assets of the private enterprise behavior As a result, some insiders of private enterprises have a weak sense of the rule of law, wrongly believing that the act of breach of trust damaging the assets of private enterprises is "no big deal" and is not worth mentioning in comparison with the corrupt behavior of appropriating state property in state-owned enterprises, and therefore, the act of breach of trust such as illegally operating the same kind of business and illegally profiting for friends and relatives is also easy to occur in practice. The amendment characterizes some of the "malpractice" behaviors in private enterprises as "corruption" behaviors, which not only emphasizes the legislative spirit of treating state-owned enterprises and private enterprises equally and protecting them equally, but also reflects the new requirements and expectations put forward by the new period of criminal legislation on the construction of compliance management system for private enterprises. The new requirements and expectations of the new period of criminal legislation on the construction of compliance management system of private enterprises.

Liu Lijie said in an interview with Wen Wei Po on July 26, the draft new provisions on punishing corruption-related crimes of private enterprise insiders, hitting the pain points in reality. Illegal operation of similar business crime, for friends and relatives illegal profit-making crime and other new provisions of the act, it is private enterprises are currently difficult to obtain evidence, filing, rights of the typical internal malpractice, I believe that the draft, if adopted, will further protect the innovation of private enterprises enthusiasm.

Liu Lijie lawyers in the interview about the reality of practice cases, said the draft for the new private enterprises in these kinds of crimes, is facing difficulties in obtaining evidence, difficult to file a case and other issues. For example, a high-tech enterprises with exclusive chip technology, found that the relatives of executives also opened a similar type of technology chip enterprises, even if it is known that this is happening in the private sector favoritism, but because this situation is often acting very covertly, the current criminal law provisions of the private sector is not included, if the civil lawsuit can only be "who claim, Who adduce evidence", the lack of public authority to investigate the corruption of state-owned enterprises as the same intervention, not only to the private enterprise evidence and civil cases to defend the rights of private enterprises has caused great difficulties, and even if the civil case is successful and successful, but also often because of the lack of investigative power and the ability to prove, resulting in the other side can not get the actual amount of profit, so that the judgment of the amount of compensation is too low, and the huge cost of defending rights is not proportional to the cost. The amount of compensation awarded is too low, which is not proportional to the huge cost of defending rights.

In addition, Liu Lijie lawyer also said in the interview, the draft this new private enterprise insiders to implement illegal operation of similar business, for friends and relatives to make illegal profits and other criminal acts are very hidden, equivalent to the wall of the enterprise, undermining the operation of many enterprises, in particular, affecting the enthusiasm of many innovative private enterprises. The new provisions in this draft plug these loopholes. In addition, by making it clear in the criminal law that these crimes are also applicable to private enterprises, it will also act as a deterrent to private enterprise insiders, which will be conducive to the healthy and orderly development of private enterprises.