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Defaulters to face harsher restrictions

Editor: zhangrui 丨Xinhua

01-19-2017 08:14 BJT

People in China who fail to fulfill court orders will be facing more restrictions, as more government bodies and social powers are joining the effort to punish the behavior.

In 2014, the Supreme People's Court (SPC) signed a memorandum with six central government departments and China Railway Corporation to impose harsher restrictions on defaulters. According to the memorandum, the defaulters will be banned from flying and traveling in upper-class sleeper train compartments, as well as taking positions as legal representative, member of the board, member of the board of supervisors, and senior executive of a company.

So far, over 40 central government departments have jointed the memorandum and the number of punitive measures approved has reached 20, reported Chinanews.com on Wednesday.

Already, more than 5.76 million flights and over 2 million bookings in upper-class sleeper trains by defaulters have been banned, according to the report.

Also, the courts in China exposed basic information of 6.44 million defaulters to the public and over 71,000 people were banned from taking senior posts in companies. The Industrial and Commercial Bank of China (ICBC) rejected 550, 000 loan applications filed by defaulters, with the total value surpassing 6.8 billion yuan (around 1 billion USD).

In the meantime, local governments in China are also coming up with harsher punishments for the discredited individuals and entrepreneurs.

In Beijing, the municipal government is reportedly considering measures to restrict defaulters from applying for driver's licenses for the private vehicles; In Shanghai, defaulters may be blacklisted and banned from entry in certain industries and markets, restricted in the trade of public resources, infrastructure, public utilities, and financial activities, among other punitive measures; And in Hebei province, defaulters may meet restrictions when applying for administrative approval.

As the Chinanew.com report noted, all of these punitive measures have started to show a coercive effect. There were over 663,700 defaulters who voluntarily fulfilled court orders and repaid their debts. 4.74 billion yuan of avoided tax have been repaid by the defaulters in 699 cases.

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