WPP Dismisses Executive Arrested in China on Bribery Charges

Advertising Giant Cooperates with Authorities While Conducting its independent Investigations, Suspends Trades with Organizations Part of Police Inquiries Amid Growing Scrutiny on Foreign Businesses Operating in China

WPP, the world's largest advertising agency, has terminated the employment of an executive suspected of accepting bribes in China. The executive was with GroupM, a media company owned by WPP.
The executive was among four individuals related to GroupM questioned by Chinese authorities. GroupM's CEO in China and country managing director for WPP China, Patrick Xu, was also questioned but not detained.
Besides the dismissal of the executive, WPP's GroupM subsidiary has suspended trade with any external entity believed to be involved in the ongoing police investigations.
The incidents in question fuel heightened scrutiny of foreign businesses operating in China. Other businesses under investigation include Foxconn for land and tax issues, and Astellas Pharma, with a Japanese national being detained.
These events coincide with China's expanded counter-espionage laws and regulations targeting consulting and due diligence firms. Previous cases involved the closure of US corporate due diligence firm Mintz Group's Beijing office and the detention of five of its employees.