Crisis Management for a Conflict with North Korea

Caixin | English | News | Nov. 14, 2025 | Regulation

Chinese authorities are implementing a comprehensive overhaul of law enforcement practices targeting the private sector, focusing on curbing profit-driven actions such as arbitrary asset seizures and cross-provincial "long-arm jurisdiction" raids. These practices, often motivated by local government financial interests, have created significant uncertainty and anxiety among entrepreneurs, hindering investment and business operations. The overhaul is part of the upcoming 15th Five-Year Plan (2026-2030) and builds on the 2025 national campaign addressing these issues.

The central government aims to establish a standardized, market-oriented, and fair legal environment to restore private sector confidence, recognizing its importance for economic growth and innovation. Measures include stricter regulations on administrative enforcement, clearer supervisory responsibilities, and the introduction of a national enforcement information platform for real-time monitoring. The plan emphasizes eliminating profit-motivated law enforcement and ensuring that confiscated assets are remitted to public coffers rather than local enforcement budgets.

Legal remedies for businesses have been strengthened through expanded administrative litigation and reconsideration channels to contest improper enforcement actions. Judicial reviews of coercive measures like asset freezes are to be enhanced, with asset investigations treated as distinct, challengeable trial phases. The guidelines also call for mechanisms to prevent and correct wrongful convictions, accompanied by increased legal training for officials and greater oversight of their actions. Recent high-profile retrial cases exemplify the government's commitment to these reforms.