SEC-China letter sent to all Hollywood studios

A letter from the Securities and Exchange Commission was sent to all six major Hollywood studios and DreamWorks Animation probing potential violations of the Foreign Corrupt Practices Act in their dealings with China, knowledgeable people not authorized to speak publicly confirmed.

In earlier reports, it was not clear how many studios had received the letter.

The fact that all did indicates that the SEC is looking into general industry practices and not the actions of any specific company.

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An Analysis of State-owned Enterprises and State Capitalism in China, 2011

Washington, D.C. Oct 26, 2011. The U.S.-China Economic and Security Review Commission released a new report, “An Analysis of State-owned Enterprises and State Capitalism in China.”

China’s breathtaking economic growth, has often led observers to assume that the country’s economic system has been transformed into a capitalist economy dominated by private enterprise. Although China’s reliance on private enterprise and market-based incentives has been growing, and the CCP’s treatment of private enterprises and entrepreneurs has been changing, it would be a mistake to minimize the current role of the State and the CCP in shaping economic outcomes in China and beyond. The Chinese government and state-owned enterprises (SOEs) remain potent economic forces. Indeed, some of China’s SOEs are among the largest firms in China and the world. They are major investors in foreign countries. They have been involved in some of the largest initial public offerings in recent years and remain the controlling owners of many major firms listed on Chinese and foreign stock exchanges.

Previous reports and analyses by academics and policy experts have estimated that Chinese SOEs, and other state-affiliated enterprises, hold a lower share of China’s non-agricultural GDP than that estimated in this report, which provides a comprehensive analysis of that country’s control and influence over its economic enterprises. This report tracks testimony heard by the Commission that China’s privatization reforms have, in some cases, reversed and that the state sector is strengthening.

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Members Lunch: Consumer Product Safety Improvement Act of 2008

When: Thu, Aug 11th 2011 11:30 am to 1:00 pm
Where: New World Saigon Hotel, Ho Chi MInh City

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Tenaris settles FCPA Charges: First use of deferred prosecution agreement by the SEC

On May 17, 2011, the U.S. Securities and Exchange Commission (“SEC” or the “Commission”) announced that it entered into a deferred prosecution agreement (“DPA”) with Tenaris S.A. (“Tenaris”) to resolve Foreign Corrupt Practices Act (“FCPA”) allegations. The settlement marks the first time the SEC has used a DPA in an enforcement action. The use of this settlement tool was signaled by the SEC last year when it announced its Enforcement Cooperation Initiative, intended to encourage more individual and corporate cooperation during FCPA investigations initiated by the Commission. As part of the settlement, Tenaris also agreed to pay $5.4 million in disgorgement and prejudgment interest. The company resolved FCPA charges with the U.S. Department of Justice (“DOJ”) through a non-prosecution agreement (“NPA”) and a $3.5 million criminal penalty. Whereas the DOJ has long utilized DPAs and NPAs to aid in successfully negotiated FCPA settlements, until its announcement last year the SEC had not been inclined to follow a similar approach.

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