(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 168 [Dereliction of Duty and Abuse of Power by Staff Members of State-owned Companies or Enterprises or Public Institutions] A staff member of a state-owned company or enterprise who causes bankruptcy of or significant damage to such company or enterprise due to their gross negligence or abuse of power shall be sentenced to imprisonment of not more than three years or custody if the State suffers material loss therefor, or to imprisonment of not less than three years but not more than seven years if the State suffers particularly material loss therefor.
A staff member of a State-owned public institution who commits the acts stipulated in the preceding paragraph shall be punished in accordance with the provisions of the preceding paragraph if the State suffers material loss therefor.
A staff member of a State-owned company, enterprise, or public institution who commit the acts stipulated in the preceding two paragraphs for favoritism shall be given aggravated penalties in accordance with the provisions of the first paragraph.
