Top court sets out guidelines on legal treatment of SMEs

Chinese courts are required to provide strong legal support for micro, small and medium-sized enterprises and place greater focus on handling cases involving them, according to a guideline issued by China's top court.

The Supreme People's Court issued a 20-point guideline on strengthening legal protection for micro, small and medium-sized enterprises on Friday, to give them greater development opportunities in the market and minimize the negative effects of court rulings.

The guideline requires courts nationwide to not interfere with the normal operation of such businesses, seize their materials, workshops or machinery, through the implementation of excessive bans or improper shutdown

Those found responsible for improperly or excessively seizing the properties of enterprises while implementing court verdicts will be held accountable, the guideline stated.

The top court called for courts to offer legal aid to enterprises affected by the ongoing pandemic to help them through business difficulties, adding that it will open a fast track channel for resolving disputes over moneys owed to such entities.