Whistleblowing generally refers to the lawful disclosure of information that a discloser reasonably believes demonstrates wrongdoing, such as fraud, abuse, corruption, waste, or threats to public health and safety, to an authorized recipient, typically someone in the position to regulate the wrongdoing. The discloser, commonly referred to as a whistleblower, may be any individual or entity that works inside or outside of the organization where the wrongdoing occurs, depending on the sector and applicable regulatory framework.

Although the concepts of “whistleblower” and “whistleblowing” are not entirely new in China, these were only formally introduced as legal terms in recent years. Since the introduction, the framework has been progressively expanded and refined to provide more detailed guidance on protecting and rewarding whistleblowers across various sectors, particularly those sectors that are difficult to monitor and directly impact public welfare.

General Whistleblowing Legal Framework

In 2009, the term “whistleblower” was formally incorporated in the Basic Rules for Enterprise Internal Control (in Chinese: 企业内部控制基本规范) (“Basic Rules”), which requires companies listed in China to establish whistleblowing policies. Under the Basic Rules, regulated entities must establish whistleblowing and whistleblower protection mechanisms, including whistleblowing hotlines and clear procedures and requirements to ensure effective communication. These measures must be promptly...

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