Two Sessions: Beijing to Curb Private Company Shakedowns
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China’s central government is ramping up efforts to crack down on profit-driven law enforcement, rolling out measures to curb abuses and to improve the business climate.
Amid sluggish economic growth in recent years, some local governments have turned law enforcement into a profit-making scheme to bolster their budgets.
Beijing will launch initiatives to address “arbitrary charges, fines, inspections and seizures” and take steps to prevent “unauthorized cross-jurisdictional and profit-driven law enforcement,” Premier Li Qiang announced Wednesday while presenting the government’s work report at the “Two Sessions” in Beijing.
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- China's central government is taking measures to curb profit-driven law enforcement and improve the business climate, addressing issues like arbitrary fines and seizures, as presented by Premier Li Qiang at the Two Sessions.
- Focus is on preventing cross-jurisdictional profit-driven enforcement and ensuring stricter accountability for local authorities, with assets from criminal cases potentially being transferred to central authorities.
- In 2024, the State Administration for Market Regulation investigated fees collected from enterprises, returning 1.36 billion yuan, while setting measures to reduce excessive fines and inspections.
- Jingmen Law Firm
- Jingmen Law Firm, based in Beijing, is represented by lawyer Zhu Mingyong. The firm is involved in discussions about reforming profit-driven law enforcement in China. Zhu has made proposals similar to those of Liu Junhai, advocating for stricter regulations and oversight to combat improper asset seizures and promote fair enforcement practices.
- 2024：
- SAMR investigated over 3,000 cases involving fees illegally collected from enterprises and ordered the return of 1.36 billion yuan ($187.5 million) to businesses.
- March 5, 2025：
- Premier Li Qiang announced the government's initiatives to tackle profit-driven law enforcement during the Two Sessions in Beijing.
- March 5, 2025：
- Luo Wen of SAMR discussed ongoing rectifications of corporate-related enforcement issues, such as excessive fines and arbitrary inspections, on the sidelines of the Two Sessions.
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