China’s Judicial Reforms: Forging a Fairer Business Landscape
China's judiciary is advancing reforms to foster a law-based business environment that upholds fairness and predictability. Recent work reports from the Supreme People's Court and Supreme People's Procuratorate highlight efforts to protect property rights, curb profit-driven enforcement, and strengthen intellectual property rights (IPR), providing significant reassurance for international investors.
Equal Protection and Curbing Profit-Driven Enforcement
The Supreme People's Court has reinforced the principle of equal legal protection for state-owned, private, and foreign enterprises. In 2024, 46 property rights cases were retried, correcting judicial errors and boosting legal certainty. Legal experts stress that safeguarding property rights and preventing profit-driven enforcement are vital for a stable market economy.
To address profit-driven enforcement, the judiciary has mandated stricter scrutiny of cross-regional and economically motivated enforcement actions. This move aims to reduce unlawful interference in businesses, reassuring investors of a fair and predictable regulatory landscape.
Enhanced Intellectual Property Protection
In an innovation-driven economy, IPR protection is crucial. Chinese courts have intensified efforts to resolve disputes, particularly in high-tech sectors, with around 21,000 individuals prosecuted for IPR infringements in 2024. Strengthened protections not only safeguard innovation but also encourage sustainable economic growth.
Improved Oversight of Administrative Measures
The Supreme People's Procuratorate has increased oversight of administrative actions affecting business operations, reviewing 31 key cases and resolving 21 by early 2025. This vigilance has resulted in releasing approximately 610 million yuan (about 85 million U.S. dollars) in frozen assets, reducing regulatory risks for foreign investors.
Implications for Global Business
These reforms enhance legal predictability, safeguard innovation, and reduce regulatory risks, creating a more transparent and balanced business environment. As China moves into its next development phase, these judicial improvements are set to support sustainable growth and international cooperation.
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