If you’re subject to spending restrictions or listed on the dishonesty registry, first find out which rule applies and request removal if possible

21. If you’re subject to spending restrictions or listed on the dishonesty registry, first find out which rule applies and request removal if possible

Cost: No cost involved. You simply need to contact the enforcement court to determine which provision applies to you. Gather proof that you’ve paid all debts or fulfilled all court-ordered obligations, or prepare any required guarantee documents. Any spending deemed essential for daily life or business operations must be approved on a case-by-case basis. The main difficulty is that you’ll need to make multiple trips to the court and submit repeated applications.

In plain terms: First, determine whether you’re only subject to spending restrictions or also listed on the dishonesty registry — these are two separate situations. Only six specific circumstances allow inclusion on the dishonesty registry, and the listing period is two years. In seven other cases, including when all obligations have been fulfilled, the court must remove the listing within three working days. Spending restrictions apply to nine categories of non-essential purchases, including travel on G-series high-speed trains. Any spending essential for daily life or business operations can be approved individually upon application.

Benefit: There are exactly six circumstances under which a person can be added to the dishonesty registry. First, if they have the ability to fulfill obligations but refuse to do so. Second, if they obstruct or resist enforcement efforts through forged evidence, violence, or threats. Third, if they use false litigation, arbitration, or concealment of assets to evade enforcement. Fourth, if they violate property reporting requirements. Fifth, if they breach spending restriction orders. Sixth, if they refuse to honor enforcement settlement agreements without valid reason. If sufficient guarantees are provided or if seized assets are enough to cover debts, the court cannot add someone under the first category. Minors cannot be listed at all. The standard listing period is two years, though it can be extended by one to three years for serious cases of obstruction or multiple violations. In seven specific cases, including full fulfillment of obligations or termination of enforcement proceedings, the court must remove the listing within three working days; proactive compliance can also lead to earlier removal. Individuals under spending restrictions may not engage in nine categories of non-essential spending, including first-class train travel, luxury accommodations, real estate purchases, premium office leases, non-business-related vehicle purchases, vacations, private school tuition for children, high-cost insurance products, or any seating on G-series high-speed trains. Any necessary exceptions must be approved by the court after a formal application. Valid guarantees or consent from creditors can also lift these restrictions nationwide.

Evidence grade: A

Sources: Supreme People's Court of China (revised in 2017). Several regulations on the publication of information on the list of dishonest persons subject to execution (Articles 1, 2, 3, 4, 10). <https://www.court.gov.cn/fabu/xiangqing/37182.html>; (Fa Interpretation [2015] No. 17, Articles 3, 8, 9): "(9) Taking all seats on G-prefixed EMU trains, first-class or above seats on other EMU trains, and other consumption behaviors that are not necessary for life and work." <https://www.court.gov.cn/fabu/xiangqing/15046.html>

Notes: Spending restrictions are also known as limits on non-essential consumption. This regulation was introduced in 2010 and amended in 2015 via Judicial Interpretation No. 17, with its title changed to “Regulations on Restrictions on Certain Types of Consumption.” This description follows the current post-amendment text. Three key changes were made in 2015: first, all seating on G-series high-speed trains became subject to restrictions; second, the clause requiring spending to be paid from personal assets was removed; third, when a business entity faces restrictions, its actual controllers also become subject to them, though personal spending unrelated to business operations can be separately approved. Being listed on the dishonesty registry and being subject to spending restrictions are distinct statuses — it’s possible to be subject to only one or neither. Neither status affects credit reports, and removal from these lists does not alter credit records; see Section 7, Article 19 for details on recovering from a dishonesty listing. Current regulations do not specify whether spouses or children can be restricted from spending their own earnings, so consult the enforcement court if this situation arises.