Call for ‘dishonest persons’ sanctions to be properly implemented

The EU Chamber of Commerce in China has published its latest position paper, calling for an end to the unequal treatment of foreign investment in China and setting out a series of recommendations for improving the IP landscape.

The IP section highlights issues around the enforceability of judgment and settlement verdicts, noting that defendants routinely ignore court awards or enforcement actions, seemingly without consequence. The paper recommends simplifying the process for such individuals and companies to be included on a Dishonest Persons List. The list was created in 2013 to facilitate a system whereby such parties could be identified and potentially face both financial punishments and an order against extravagant spending (eg, restrictions on their ability to buy airline tickets, rent high-end office space or send their children to private schools).

The paper also highlights the need to ensure that commercial third parties (eg, banks, hotels, restaurants and travel agents) refer to and comply with the list. It urges the relevant Chinese authorities to “issue guidelines to the relevant commercial entities involved in restricting extravagant spending orders, providing incentives and/or imposing penalties on those entities to encourage their assistance”.

The position paper is the EU chamber’s key advocacy document and will feed into ongoing discussions with relevant Chinese government stakeholders at all levels, as well as the European Commission and relevant EU member states.