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China Clamps Downs Harder on Local Government Shakedowns of Private Businesses

Published: May. 23, 2025  1:37 p.m.  GMT+8
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China is intensifying a nationwide campaign to rectify abusive administrative enforcement practices that burden businesses, including an early warning system flagging localities where fines and confiscated revenues surge, a senior justice official said Wednesday.

“We conduct real-time statistical analysis of work situations nationwide and issue timely alerts and warnings,” said Hu Weilie, Vice Minister of Justice, at a State Council Information Office press conference. "For example, if revenue from fines and confiscations increases by more than 20% year-on-year, it’s set as an alert value, requiring the relevant local authorities to explain the situation before corresponding measures are taken.”

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  • China launched a nationwide campaign in March 2024 to address abusive administrative enforcement practices burdening businesses, focusing on arbitrary fines, inconsistent standards, and profit-driven enforcement.
  • An early warning system flags localities with revenue from fines and confiscations increasing over 20% year-on-year, prompting investigations.
  • As of May 21, 6,232 problem leads were collected, 335 million yuan addressed, and over 3,000 unqualified enforcement officers removed.
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