(Selected from the translated work titled The Criminal Law of the People's Republic of China, authored by Robert Zhang and Steve Li, criminal defense lawyers registered in Shanghai, China.)
Article 166 [Illegally Profiting for Relatives or Friends] An employee of a State-owned company, enterprise, or public institution who, by taking advantage of their positions, commits any of the following acts shall be sentenced to imprisonment of not more than three years or custody and/or a fine if significant damage is incurred to the national interests thereby, or to imprisonment of not less than three years but not more than seven years and a fine if particularly significant damage is incurred to the national interests thereby:
Entrusting the profitable businesses of the entity to their relatives or friends for operation;
Purchasing from or selling to an entity managed by their relatives or friends, goods at a price which is significantly higher than the market price; or
Purchasing substandard products from an entity managed by their relatives or friends.
