China Justice Observer

中司观察

EnglishArabicChinese (Simplified)DutchFrenchGermanHindiItalianJapaneseKoreanPortugueseRussianSpanishSwedishHebrewIndonesianVietnameseThaiTurkishMalay

China to Strengthen Governance of Sham Litigation

Mon, 13 Dec 2021
Categories: China Legal Trends

On 9 Nov. 2021, the Supreme People’s Court (SPC) issued the “Opinions on the Further Governance of Sham Litigation” (hereinafter “the Opinions”, 关于深入开展虚假诉讼整治工作的意见) and typical cases on the governance of sham litigation.

In recent years, some people in China filed lawsuits with courts based on fictitious legal relationships, fabricated facts, forged evidence and false certificates. They hoped to use the courts’ judgments to misappropriate property, transfer assets, and make fraudulent insurance claims.

Chinese courts have been plagued by this and have been trying to identify sham litigation. The Opinions reflects the SPC’s attempts to do so.

The Opinions identifies ten types of common sham litigation, including private lending disputes, lawsuits on objection to enforcement, enterprise bankruptcy disputes, corporate separation or merger disputes, trademark disputes involving well-known trademarks as well as disputes which arise from divorce, division of family property, inheritance and real estate sales contracts, and are related to housing demolition and resettlement.

The Opinions pays particular attention to sham litigation of real estate sales. Due to China’s strict controls on real estate transactions to control the bubble, many traders try to transfer the ownership of the immovables through litigation.

 

 

Cover Photo by Felix Zhao on Unsplash

Contributors: CJO Staff Contributors Team

Save as PDF

Related laws on China Laws Portal

You might also like

Beijing Passes Autonomous Vehicle Regulation

In December 2024, Beijing passed the "Beijing Autonomous Vehicle Regulation," effective April 1, 2025, to promote development and safety, allowing self-driving cars in taxis, buses, and more after rigorous testing.

SPC Revises Rules on Mainland China - Taiwan Judgment Recognition

China’s Supreme People’s Court (SPC) has amended regulations on the mutual recognition and enforcement of civil judgments between Mainland China and Taiwan, clarifying application procedures, exceptions, and jurisdictional conflicts, effective January 1, 2025.

China Establishes Shanghai International Commercial Court

The Shanghai International Commercial Court was established in December 2024 as a division of the Shanghai First Intermediate People’s Court, with exclusive jurisdiction over foreign-related commercial cases and arbitration judicial review, along with newly released jurisdictional regulations and model clauses.

SPC Issues Guiding Cases on Gig Worker Protection

In December 2024, China’s Supreme People’s Court issued its first guiding cases on gig worker labor disputes, clarifying criteria for determining employment relationships with platform companies.

China Amends Supervision Law to Strengthen Oversight

The newly amended Supervision Law of the People’s Republic of China, effective June 1, 2025, strengthens oversight, limits supervisory powers, and enhances protections for citizens' rights through standardized enforcement.