China orders US companies to set up Communist Party units to oversee firms in new global enforcement

The Chinese government is preparing to enforce regulations on all fund management companies operating in China — including U.S.-based and other foreign firms — requiring them to set up an internal unit for supervision by the ruling Chinese Communist Party (CCP).

…“Fund management companies shall, in accordance with the provisions of the Articles of Association of the Communist Party of China, establish party organizations, carry out party activities, and provide necessary conditions for the activities of party organizations,” the provision states, according to a translation by Ignites Asia. “State-owned fund management companies shall, in accordance with relevant regulations, integrate party leadership into all aspects of corporate governance, and include party building work requirements into the company’s articles of association, so as to implement the legal status of party organizations in the corporate governance structure.”

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