In China, once a court issues a judgment, the defendant is legally obligated to comply with its terms. If the defendant fails to perform voluntarily, the court has enforcement acts to compel compliance under the Civil Procedure Law of the People’s Republic of China. Below is an outline of how Chinese courts enforce judgments:
- Legal Framework
Civil Procedure Law of the PRC (Articles 249–290): Governs the enforcement of judgments, rulings, and arbitral awards.
- Enforcement Process
a. Application for Enforcement:
The plaintiff (judgment creditor) can apply for enforcement if the defendant (judgment debtor) does not comply with the judgment voluntarily. The application must be made to the court that issued the judgment or another court with jurisdiction. The statute of limitations for enforcement applications is generally two years from the date the judgment takes effect.
b. Investigation of Assets:
The court will investigate the defendant’s assets, including bank accounts, real estate, vehicles, securities, and other property. Information is obtained through government databases and financial institutions.
c. Issuance of Enforcement Notices:
The court sends an enforcement notice to the defendant, instructing them to fulfill their obligations within a specified time.
- Enforcement Measures
If the defendant fails to comply, the court can take the following actions:
a. Asset Seizure and Freezing
Freeze the defendant’s bank accounts. Seize, auction, or sell the defendant’s property (e.g., real estate, vehicles, or other valuable assets). Confiscate securities, stocks, or other financial instruments.
b. Garnishment of Income
Order the deduction of funds from the defendant’s income, such as wages, rent, or other receivables.
c. Property Auction
Publicly auction seized assets, with proceeds used to satisfy the judgment debt.
d. Blacklisting and Restrictions
Place the defendant on the “List of Dishonest Judgment Debtors” (失信被执行人名单).
Impose restrictions on high-value consumption, such as luxury travel, high-end hotels, or private schooling for their children. Restrict access to loans and credit.
e. Business Operations
Suspend or restrict the defendant’s business activities. Freeze shares or stakes in companies owned by the defendant.
f. Compulsory Measures
Impose fines or detention on the defendant for non-compliance. Prosecute the defendant for refusal to execute a judgment or ruling under Article 313 of the Criminal Law of the PRC.
