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China to place business restrictions on defaulters

Xinhua, January 21, 2016 Adjust font size:

China will impose 55 restrictive measures on those who deliberately fail to pay compensation awarded by the courts, according to the Supreme People's Court (SPC) on Thursday.

A total of 44 central authorities, such as the SPC, the People's Bank of China and the National Development and Reform Commission, have signed a memorandum of understanding on non-performance and default.

Defaulters will be restricted in future business activities including restrictions on buying property or luxury goods, and a cap on the level of fees they may pay for their children's schooling.

More than 2 million of the 3 million legal judgements made each year in China, result in defaults, generally when the liable party absconds, said Jiang Bixin, deputy chief justice of the SPC.

Some even transfer assets overseas or refuse to fulfill their obligations by threats of violence, Jiang said. Endi