CHINA Trends and Developments Contributed by: Greg Hallahan, Amanda Rasmussen and Kristine Kwok, Secretariat
Credit blacklist If an individual or entity has the funds, as estab - lished by the courts, to comply with an enforce - ment order but refuses to pay, the individual or legal representative (and sometimes also direc - tors/shareholders) of the enforced company are placed on both the restricted consumption list and the credit blacklist. Their various accounts (at banks, the housing authority, pension funds and payment platforms) are then frozen. Those listed on a credit blacklist are also not able to: • participate in government procurement ten - ders; • apply for administrative approvals, certifica - tions/licences or government subsidies; or • obtain financing from regulated financial institutions. They are also not allowed to enrol their children in private schools, make investments or take out loans, travel overseas, apply for a credit card or drive a car registered in their name on express - ways. Dishonest debtors list Finally, an individual might also be placed on the dishonest debtors list if they have engaged in misconduct or “subterfuge” to avoid paying debts, such as: • obstructing the courts using fraudulent docu - mentation, violence or threatening behaviour; • engaging in frivolous litigation; • concealing, dissipating or failing to accurately report assets; or • violating orders under the restricted con - sumption or credit blacklists. Property records Property records are not made publicly available in the PRC, except in very limited ways.
All land in China is owned by the state. Individu - als and companies therefore hold use rights on long-term leases, usually approximately 75 years. Over the past ten years, records showing the transfer of property use rights to a company have been published by the Ministry of Land and Resources and the websites of its local depart - ments. For most of this time, the data has been difficult to search. Only searches by land plot (not by address or name of the company) have been possible. These land transfer records have recently been made searchable by company name and as far back as 2010. The records show which company is receiving the land lease, the land use type, location, size, consideration and date of transfer. However, no information about the entity trans - ferring the land or about any property situated on the land is specified. No information to show land or property trans - fers to/from individuals has yet been made public. Corporate records, company websites and social media searches can help to identify addresses associated with companies and indi - viduals to at least offer an indication of proper - ties held. Indications of corruption and fraud The Central Commission for Disciplinary Inspec - tion (the “CCDI” ) publishes notices of selected corruption-related investigations issued against Chinese Communist Party (CCP) members, working at all levels of government and at state-owned enterprises. The member’s name and allegations against them are recorded in the notice.
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