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What can I do if I win a case but cannot enforce the judgement in China?

Sometimes, winning a judgment may mean nothing to the plaintiff since enforcement has been a serious problem under China’s legal system in past decades. Those people subject to enforcement may conceal or transfer their asserts before People’s Court start the enforcement process. To address this problem and to build the social credit system, Chinese government and People’s Court enacted several provisions to regulate those people subject to enforcement who have bad conduct in enforcement process.

A person may be listed as dishonest judgment debtor under 6 circumstances

1. Having the capability to fulfill the obligations determined in the effective legal instrument but refusing to do so;

2. Obstructing or resisting the court enforcement by forged evidence, violence, threat or any other method;

3. Evading enforcement by fraudulentlitigation or false arbitration, concealment or transfer of property;

4. Violating the property reporting system;

5. Violating the Order on Restriction of High Consumption; and

6. Refusing to implement the enforcement reconciliationagreement during the enforcement procedure without justifiable reasons.

Consequences will be caused if a person is listed asDishonest Judgment Debtors

First, after being listed as dishonest persons subject to enforcement,the information of dishonest persons subject to enforcementwill be noted and announced to the public by governments and mass media.

Second, the high consumption of dishonest persons subject to enforcement will be restricted so that he/she will not be permitted to high payment by using his/her own property. These restrictions include: Travel by airplane; Choose soft berth when traveling by ordinary train; Travel by G-series trains and the first-class seats and above of other D-series trains; Choose a second class or better cabin when traveling by ship; High-level consumption in star-rated hotels, nightclubs, golf courses, and other places; Purchase real estate or build, expand or luxuriously decorate houses; Lease high-end office buildings, hotels, apartments, or other places for business operation; Purchase vehicles not necessary for business operation; Take a vacation; Send his or her children to high-cost private schools; Pay high premiums for insurance and/or wealth management products; Other consumption not necessary for livelihood and work.

Also, relevant government departments may impose restrictions and credit sanctions in the aspect of government procurement, bidding, administrative examination and approval, government support, financing credit, market access, accreditation, etc.

For more professional information and suggestions about purchasing medical supplies for epidemic prevention in China, please feel free to contact our experienced Chinese lawyers to have a consultation.

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