Draft law targets defaulters

Greater deterrence

According to the draft, courts will be allowed to impose a continuous daily fine on those who fail to abide by verdicts, although it may be levied for no more than 180 days.

Courts will also be able to extend the current 15-day maximum period of judicial detention for such defaulters for up to, but not exceeding, six months.

"At present, we can place a fine of no more than 100,000 yuan ($14,800) on individuals who refuse to comply with rulings, and no more than 1 million yuan on companies and similar organizations. However, no matter how much money is involved, we can only fine such people once," Wang said.

"This is not harsh enough to deter some large businesses and people with financial power. Therefore, the daily fine is essential. It will place greater pressure on defaulters."

Yang shared the story of a domestic dispute he resolved in 2016 to explain why he supports extending the detention period, adding that it will pose another threat to those who refuse to repay debts.

In this case, a sanitation worker sold an apartment after his wife's death. He had promised to give his parents-in-law some of the money, but instead, he transferred the cash to himself and told the couple that it had been lost in failed investments. Eventually, the two sides went to court.

"The man was dismissive of the detention he would face because compared with paying, losing his personal freedom for just 15 days of work and life wasn't a big issue," Yang said.

He added that the defaulter only agreed to pay the money when he learned that he could be charged with failing to comply with a court ruling and would be jailed if he didn't give the money to his parents-in-law.

"It can be seen that losing their freedom for a longer period is an effective way of prompting defaulters to repay. So, extending the judicial detention period is necessary, I think," Yang said.