China curbs excessive policing of enterprises

China is improving long-term mechanisms to regulate enterprise-related administrative law enforcement, aiming to curb excessive inspections, arbitrary fines and improper asset seizures while making supervision more targeted and effective, central government officials said recently.

Since the onset of a nationwide special operation in March 2025, authorities have addressed more than 66,000 case tip-offs involving notable law enforcement problems related to businesses, helping companies recover 30.7 billion yuan ($4.51 billion) in losses, according to the Ministry of Justice.

Administrative inspections fell 34 percent year-on-year, while the average rate of problems identified during inspections rose by nearly 19 percentage points. Officials said the improvement demonstrates that regulation should rely more on precision rather than frequency.

The operation targets issues including excessive inspections, arbitrary fines and fees, improper asset seizures, irregular cross-regional enforcement and profit-driven enforcement. This year's Government Work Report and the outline of the 15th Five-Year Plan (2026-30) also called for improving long-term mechanisms to regulate the sector.

Hu Weilie, vice-minister of justice, said the campaign has produced clear results after more than a year of focused rectification. Authorities have removed more than 7,000 law enforcement bodies that failed to meet legal requirements, dismissed more than 300,000 unqualified personnel and eliminated more than 400,000 unnecessary enforcement items.

"After more than a year of systematic governance, inspection frequency has dropped significantly, while the precision and effectiveness of inspections have improved," Hu said. "The effect of regulation is not measured by quantity, but by quality; not by frequency, but by precision."

Hu stressed that regulating enforcement does not mean weakening supervision. Strict standards must be upheld in key areas related to public health and safety, including food and drug safety, workplace safety as well as environmental protection.

At the same time, local authorities have applied policies such as exempting first-time or minor violations from penalties, sparing enterprises more than 11 billion yuan in fines.

Hu said some problems remain, including inaction, disorderly enforcement, improper penalties and "fines without regulation", requiring stronger oversight.

Arbitrary fines remain a major concern. Liu Bo, head of the Ministry of Justice's administrative law enforcement coordination and supervision bureau, said authorities investigated more than 5,500 cases related to improper fines over the past year, totaling 790 million yuan.

Local judicial administrative departments have also worked with finance and audit authorities to monitor abnormal growth in revenue from fines and confiscations and to eliminate assessment indicators linked to such revenue, Liu said.

To address inconsistent enforcement standards, the ministry has worked with relevant departments to issue guidance on practical issues that have confused both enterprises and grassroots law enforcement personnel, Liu said. More than 330 measures have been introduced nationwide to standardize enforcement criteria.

Hu stressed that every enforcement action may be routine for officers, but it can directly affect the livelihood and development of enterprises and the public.

Authorities will further improve systems for publicizing enforcement activities, recording the full enforcement process and reviewing major decisions, he said.