We are starting to see some of the fall-out from the Avon FCPA investigation [Ding Dong, FCPA Calling]. The Wall Street Journal [Regulators Detained by China in Probe] and Reuters [China probe may curb foreign deals: sources] are both reporting the detention of two officials from the Commerce Ministry.
The Wall Street is reporting that there is an investigation of Zhang Yudong, a “well-known” attorney at a Beijing law firm that helps companies get licensed in China. Reuters is reporting the detention and investigation of two lawyers at eh Chines Law firm Seafront (known as Si Feng in Chinese).
Reuters is also investigating at least two other U.S. law firms.