Foreigners who disobey Chinese courts could be barred from leaving

[webfact]

Foreigners who disobey Chinese courts could be barred from leaving
Cao Yin
China Daily

BEIJING: -- Foreigners who fail to comply with all court rulings face being banned from leaving China, with information about them disclosed online, court officials say.

On Tuesday, the Supreme People's Court, the country's top court, published a blacklist of 31,259 people who have refused to make court-ordered payments and failed to comply with rulings.

Five of them are from overseas.

The five are involved in disputes over debts in Beijing and in Jiangxi and Zhejiang provinces, the top court's implementation department said.

"If the five defaulters use their assets overseas, such as cars, houses and cash, to clear their debts in China, the restriction on them will be removed," said Liu Guixiang, the department's director.

The restriction also targets dishonest Chinese residents and foreign companies operating in the country, he said.

China has signed bilateral agreements on implementing civil and commercial judgments with countries such as Russia, but has reached few of these agreements because of different legal systems, Liu said.

"Therefore, the most effective way to push overseas debtors to comply with Chinese verdicts is to prevent them from leaving," he said.

The new restriction covers all breaches of court orders, not just debt repayments.

Song Haiping, director of the implementation department at Henan High People's Court, cited a previous case where an indebted foreigner was barred from leaving.

In March 2010, a Zhengzhou resident identified only as Dong bought a 2 million yuan (US$328,000) house from a United States national, but the seller did not hand over the property and refused to return the down payment of about 500,000 yuan ($82,014).

Dong sued the man in January 2011, but the foreigner disappeared after paying only 55,000 yuan ($9,021).

The court barred the man from leaving the country and told exit-entry departments of the restriction.

On May 23 last year, the foreigner was held in Shenzhen, Guangdong province. He paid off the debt the next month.

"The departure ban can work as a deterrent," said Song, who has issued more than 100 restrictions on departure.

But Liu said courts will have to turn to judicial cooperation with their overseas counterparts if the ban does not work. The process could take time and be complicated, he said.

In another incident, a Hong Kong resident ran a coal business and defaulted on his debts in Shanxi province.

But before a local court told him to repay the debts, he transferred all his assets to his hometown, a statement by the top court said.

The provincial court had to apply for judicial help from Hong Kong, but making the application took six months.

Cheng Lei, an associate law professor at Renmin University of China, said the blacklist can help build a "credit system" in China, a task also requiring financial departments and government administrations to share their data.

"The system needs contributions from all walks of life," Liu said.


-- ANN 2013-11-06

[chuckd]

What's the big news about this practice?

Saudi Arabia has been enforcing the exit permit denial for years for those expats who might be afoul of the law. I expect Thailand does the same.

The last thing we need is another thread on China.

[Credo]

I lived and worked in China for a time. I would be very careful about breaking the law in China if I thought I would have had to stay there longer.

[Scott]

Don't worry too much about another thread on China. I think there was a mall shooting in the US and that should keep everyone busy for a while.

[Joe Mamma]

Hotel California?

[impulse]

The deeper implication is that any Chinese entity in a dispute with a foreigner can go to court and get a ruling preventing them from leaving the country until the matter is settled.

One party in the dispute is living at home, with his family, enjoying life, and the other party is holed up in a hotel, spending $ thousands every month, eating strange food, watching his expenses mount, and can't leave the country until the dispute is settled.

Hardly a formula for a fair outcome to any business dispute, especially in a country known for tossing lawyers into jail for simply advocating for their clients.

Edited November 6, 2013 by impulse

[gopis108]

And then there is MEXICO if you can you believe it,Just like in the Old Cowboy movies ,one can still walk into Mexico from America without any ID and without having to speak to any immigration agent etc.etc.,just walk in and dissapear or do whatever you like.I did it last year from Yuma Arizona.Of course when you want to come back to America that is a different story.

[Somtamnication]

This could never happen in Thailand.

[F430murci]

The deeper implication is that any Chinese entity in a dispute with a foreigner can go to court and get a ruling preventing them from leaving the country until the matter is settled.

One party in the dispute is living at home, with his family, enjoying life, and the other party is holed up in a hotel, spending $ thousands every month, eating strange food, watching his expenses mount, and can't leave the country until the dispute is settled.

Hardly a formula for a fair outcome to any business dispute, especially in a country known for tossing lawyers into jail for simply advocating for their clients.

Did this not recently happen in Thailand to some poor guy from England being extorted by his landlord?

[F430murci]

And then there is MEXICO if you can you believe it,Just like in the Old Cowboy movies ,one can still walk into Mexico from America without any ID and without having to speak to any immigration agent etc.etc.,just walk in and dissapear or do whatever you like.I did it last year from Yuma Arizona.Of course when you want to come back to America that is a different story.

Yes, and there are plenty if people in Mexico that will make you disappear for good and it will never be investigated. Mexico is as lawless as depicted in old west movies.

[ravip]

What happens in China is NEWS.

What happens in my country... hmmm it is good (whatever).

I guess the human species are very advanced.

[Emdog]

I think in the West we might call this "contempt of court" and lock them up (which would save on food and housing expenses) until they comply with court order. I know several here who would be happy to be in contempt and not allowed to leave. No more visa runs for them!

[tingtongteesood]

5 out of 31,259 so that means that 0.016 % are foreigners - BIG news ???

[Thai at Heart]

The deeper implication is that any Chinese entity in a dispute with a foreigner can go to court and get a ruling preventing them from leaving the country until the matter is settled.

One party in the dispute is living at home, with his family, enjoying life, and the other party is holed up in a hotel, spending $ thousands every month, eating strange food, watching his expenses mount, and can't leave the country until the dispute is settled.

Hardly a formula for a fair outcome to any business dispute, especially in a country known for tossing lawyers into jail for simply advocating for their clients.

It is pretty much standard procedure the world over, unless you are a prime minster in which case your bail can extend to visiting major sporting events.

...

[chuckd]

5 out of 31,259 so that means that 0.016 % are foreigners - BIG news ???

My handy Casio calculator shows it to be 0.00016% - even BIGGER news.

[RubbaJohnny]

You can't trust a sister like an ole time blagger when you can't buy your way home..

Caveat emptor,an old Scot saying do not purchase porkies in red vests,Smart money may sell a pup and slip off DOBUY !

Edited November 7, 2013 by RubbaJohnny