The State Compensation Law was promulgated in 1994 and amended in 2010 and 2012.The latest revision entered into force on January 1, 2013.

There are 42 articles in total.

The key points are as follows:

1.Where, in performing its/his functions, any state organ or state functionary commits any infringement upon the legitimate rights and interests of a citizen, a legal person or any other organization as prescribed in this Law, causing any damage, the victim shall be entitled to state compensation in accordance with this Law.

2.Victimized citizens, legal persons or other organizations shall have the right to demand compensation.

3.To claim compensation, the compensation claimant shall firstly apply to the organ obligated to make compensation. Where the compensation claimant raises any objection to the manner, items or amount of compensation or if the organ obligated to make compensation decides not to make compensation, the compensation claimant may, within three months from the day on which the organ obligated to make compensation decides to make compensation or not to make compensation, bring a lawsuit in the court.

4.State compensation shall take the form of payment of damages in the main. If freedom of the person of a citizen is infringed, compensatory payment for each day shall be assessed in accordance with the State average daily pay of staff and workers in the previous year.

5.This Law shall be applicable to claim by a foreigner, foreign enterprise or organization in the territory of China against the People’s Republic of China for state compensation.

6.If the mother state of a foreigner, foreign enterprise or organization fails to protect or imposes restrictions upon the right of a citizen, legal entity or other organization of China to claim for state compensation from such state, China shall follow the principle of reciprocity in respect of such mother state of the said foreigner, foreign enterprise or organization.