China toughens restrictions on court order defaulters

China has extended penalty restrictions against people who default on their court orders, keeping them from traveling by plane, applying for loans and credit cards, or getting promoted.

“There has been 6.73 million defaulters on the Supreme People’s Court’s (SPC) blacklist,” said Meng Xiang, chief of the SPC’s enforcement bureau.

So far, 6.15 million people who defaulted have been restricted from purchasing plane tickets and 2.22 million barred from travelling by high-speed train, which are usually more expensive.

The SPC has cooperated with airlines and railway companies from December last year to bar those who default from purchasing tickets, based on ID card information and their passports, according to Meng.

Previously, the ban was only based on ID card numbers, and many bought tickets with their passports to circumvent the ban.

“In addition, the SPC signed memos with 44 units including the National Development and Reform Commission to share information of defaulters in order to extend penalty restrictions,” Meng said.

Altogether 71,000 people who defaulted have been restricted from serving as corporate representatives and executives, according to SPC figures.

The Industrial and Commercial Bank of China, a major commercial bank, has rejected more than 550,000 loan and credit card applications from people who have defaulted.

“The courts include government staff, members of local legislative and political advisory bodies, and Communist Party of China congress delegates on its blacklist, with some receiving punishment including expulsion and demotion,” Meng said, without disclosing exact figures.

The deterrent is effective, and nearly 1 million defaulters have voluntarily fulfilled their court orders.