Latest Cover Story | Nationwide Outcry Against Profit-Driven Interprovincial Arrests: How Long Will Expanded Investigate, Seize, Freeze Last? (AI Translation)

最新封面报道｜各方声讨跨省抓人趋利执法 “查扣冻”扩大化何时休

China is currently grappling with profit-driven law enforcement practices that affect its economic growth and business environment.[para. 1] Recent actions and statements by the government emphasize the need to enhance standardization and oversight of administrative law to protect enterprises and sustain confidence.[para. 3] Premier Li Qiang outlined the State Council's plans to address instances like cross-regional law enforcement actions and abnormal penalty revenues as part of efforts to curtail arbitrary legal practices impacting businesses.[para. 1] These government efforts intend to regulate, review, and correct enforcement activities to prevent profiteering from compromising business interests.[para. 5]

Public concern has grown over cases highlighting law enforcement exploiting legal actions to gain financially. For instance, a case in Zhejiang Province involved officers engaging in extortive behavior across provincial lines, impersonating legal authorities to elicit bribes from entrepreneurs.[para. 7] Judicial bodies later investigated the misuse of power, sentencing the involved officers.[para. 9] Public security and prosecutorial departments have started to examine improper use of cross-regional enforcement procedures, given the damaging impact such actions have on business environments and confidence in legal fairness.[para. 14] An alarming statistic from 2024 divulged that over 17,000 cases involving unlawful protracted sealing of enterprise assets were under special supervision.[para. 12]

Profit-driven law enforcement has provoked wider scrutiny within China, evidenced by similar issues reported in Guangdong and other provinces.[para. 18] The Central Political Bureau and state institutions have recognized the detrimental influence of such practices on the national economy, especially against a backdrop of inconvenient cross-regional enforcements and unscheduled asset freezes aimed at financial gain.[para. 23] An action proposal to reform and refine legal practice standards has been a central feature of political dialogue, aiming to provide a comprehensive legal shield for enterprise operations and property.[para. 28]

On a national scale, statistics show an evolving reliance on income from fines and confiscations. Studies reveal that confiscated revenues have notably increased, with significant dependencies observed in distressed fiscal areas.[para. 32] Of these practices, the most concerning are localized judicial bodies pursuing profit-driven law enforcement in wealthier regions for fiscal supplementation.[para. 35]

Additionally, China's legislative evolution and historical context reveal ongoing challenges in stricter detachment of confiscated funds from local judicial budgets.[para. 45] Past policies perpetuated connections between revenue generated from legal penalties and governmental financial structure necessity, leading to profit-dependent enforcement overreaches.[para. 48]

Echoing the sentiment of judicial reform, scholars like Wu Hongyao have underlined the risks of unfettered seizure practices adversely affecting business operation—with critical cash flows often arrested during investigative procedures.[para. 55] Experts advocate for centralized management of legal enforcement to eliminate regional profit reliance, proposing that laws be updated to delineate a more distinct separation of fiscal gains from law enforcement procedures.[para. 62] Recommendations lean into creating high-level investigative bodies that could address internet-based economic crimes effectively without local interruption or profit incentives.[para. 68]

The discourse also stresses the need for stricter designation and verification processes for assets involved in cases and judicial oversight arrangements to supervise financially impacted companies better, preserving their market and operational integrity during investigations.[para. 74][para. 76] Extensive legal refinement and systemic judicial restructuring are deemed key to alleviating profit-seeking enforcement and ensuring that economic rights and legal fairness are upheld across China’s socio-economic landscape.