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Supreme People’s Court Calls Out Use of Fake Lawsuits to Evade Debts

As China’s economy keeps sliding downwards, some Chinese individuals and companies have colluded with others to create fake lawsuits so that they would not have to pay back their debtors during the multi-year litigation period resulting from the lawsuits.

Recently, the Supreme People’s Court of China released information on typical criminal cases exemplifying this debt evasion practice. The highlighted instances illustrate several tactics used to cause delay in settlement of debts. Tactics include fake transfers of assets, fabricated facts hindering court-ordered execution of property, and interference in compulsory property execution.

Source: Xinhua, December 27, 2023