Fa Shi [2026] No. 19 | Effective September 22, 2026 | All 24 articles

Adopted at the 1955th meeting of the SPC Adjudication Committee on August 25, 2025; promulgated September 20, 2026.

These Provisions are formulated in light of judicial practice and pursuant to the PRC Civil Code, Criminal Law, Civil Procedure Law, Criminal Procedure Law and other applicable laws, to ensure the proper trial of civil disputes involving criminal offenses and protect the lawful rights and interests of the parties.

Article 1

In trying civil disputes involving criminal offenses, people's courts shall ensure that criminal and civil proceedings are effectively connected and coordinated as a whole, so that the handling of cases promotes uniform application of the law, timely and effective protection of the parties' lawful rights and interests, and a law-based business environment.

Article 2

For purposes of these Provisions, civil disputes involving criminal offenses are cases in which a civil dispute and a criminal case concern the same facts or related facts.

For purposes of these Provisions, the same facts means circumstances in which the parties and the basic facts in the civil and criminal cases are the same.

Article 3

Where a party brings a civil action based on facts related to, but not the same as, conduct suspected of constituting or constituting a criminal offense (hereinafter referred to as criminal conduct), the people's court shall accept the action in accordance with law in any of the following circumstances:

(1) A person's conclusion of a contract in the name of a legal person, an unincorporated organization or another person constitutes criminal conduct, and the counterparty seeks to hold that legal person, organization or other person, who is not implicated in the criminal conduct, civilly liable;

(2) Conduct by a legal representative, person in charge or employee in the course of their duties constitutes criminal conduct, and the contractual counterparty or person entitled to compensation for the tort seeks to hold a legal person or unincorporated organization that is not implicated in the criminal conduct civilly liable;

(3) A debtor's conclusion of the principal contract constitutes criminal conduct, and the creditor seeks to hold a guarantor who is not an accomplice of the debtor civilly liable;

(4) There are two or more debtors, the conduct of some constitutes criminal conduct, and the creditor seeks to hold the other debtors civilly liable;

(5) A tort constitutes criminal conduct, and the insured, beneficiary under the insurance contract or other person entitled to compensation seeks payment of insurance benefits from the insurer;

(6) Other circumstances in which a party brings a civil action based on facts related to, but not the same as, criminal conduct.

Article 4

A civil case accepted under Article 3 of these Provisions shall be tried separately from the related criminal case and shall not be affected by the criminal proceedings. However, where determination of the basic facts of the civil case must depend on the outcome of the criminal case and that case has not concluded, the court shall rule to stay the civil proceedings in accordance with law. Proceedings shall be resumed promptly once the grounds for the stay cease to exist.

Where the civil case and the related criminal case are tried separately by different people's courts, the courts concerned shall promptly notify one another of acceptance, progress, adjudicative outcomes and other relevant information.

Article 5

Where, during a civil case, a party applies for a stay on the basis of a receipt acknowledging acceptance of a criminal complaint or similar materials, the people's court shall reject the application if, upon examination, the requirements for a stay are not met.

Where, during a civil case, a relevant authority requests transfer of the case on the ground that it has opened a criminal investigation into facts involved in the civil case, the people's court shall examine the request carefully. If the civil and criminal cases do not concern the same facts, the court shall inform the authority of the circumstances and reasons and continue the civil proceedings; where the proviso in the first paragraph of Article 4 applies, the court shall rule to stay the proceedings in accordance with law.

Where, during a civil case, the people's court discovers leads or evidence indicating a suspected crime or improper criminal prosecution, it shall promptly transfer them to the relevant authority.

Article 6

Facts established by an effective criminal judgment or ruling need not be proved by a party in related civil proceedings, unless there is contrary evidence sufficient to overturn them.

Where, in civil proceedings, a party produces contrary evidence sufficient to overturn facts established by an effective criminal judgment or ruling on which conviction or sentencing was based, the court hearing the civil case shall promptly inform the court that issued the effective criminal judgment or ruling in writing.

In those circumstances, if the court that issued the effective criminal judgment or ruling considers its original decision free of error, the court hearing the civil case shall submit the matter to their common higher-level people's court for examination and disposition.

Article 7

Where, in civil proceedings, a party uses confessions and defenses of criminal suspects or defendants, witness testimony or other evidence from related criminal proceedings, and that material was neither used as a basis for the criminal decision nor excluded as illegally obtained evidence, the people's court shall arrange for the parties to examine and challenge the evidence in accordance with the Civil Procedure Law and determine whether to admit and rely upon it in light of that examination.

Article 8

Facts not established in an effective criminal judgment or ruling because they did not meet the criminal standard of proof may be established in accordance with law in related civil proceedings if, upon examination, they satisfy the civil standard of proof.

Article 9

Where a party brings a civil action under Article 3 of these Provisions seeking civil liability from a person other than the criminal defendant, and the opposing party requests a corresponding deduction in the civil adjudication for property already returned or compensation already received through criminal recovery, an order for restitution or similar means, the people's court shall uphold that request in accordance with law.

After the civil adjudication takes effect, where the judgment debtor requests a corresponding deduction in civil enforcement for property already returned or compensation already received through criminal recovery, an order for restitution or similar means, the people's court shall uphold that request in accordance with law.

Article 10

Where a non-party brings a civil action asserting rights to property sealed up, seized or frozen in a criminal case, the people's court shall not accept the action and shall inform that person that they may submit a complaint to the authority handling the case. If the criminal case has been brought before a people's court, the non-party shall also be informed that they may raise an ownership objection with the court hearing the criminal case; that court shall hear the non-party's views and, where necessary, notify them to attend the hearing.

Where a non-party considers that the disposition of case-related property in an effective criminal judgment or ruling infringes their lawful rights and interests and submits a complaint under the adjudication supervision procedure, the people's court shall examine and handle it in accordance with law.

Article 11

After an entity suspected of a crime enters criminal proceedings, a people's court may accept an application by a relevant party for that entity's bankruptcy if the requirements for acceptance are met.

After the court accepts the bankruptcy application, the bankruptcy and criminal proceedings may proceed separately. Recovery of illegal proceeds in the criminal proceedings and collection of the debtor's property in the bankruptcy proceedings shall be coordinated to protect, in an integrated and coordinated manner and in accordance with law, the lawful rights and interests of criminal victims and bankruptcy creditors.

Where employees of an entity commit a crime in its name but the offense is not treated as an entity crime under law, the preceding two paragraphs shall apply by reference to an application by a relevant party for the entity's bankruptcy during the criminal proceedings.

Article 12

After an adjudication in a civil action incidental to criminal proceedings takes effect, the people's court shall accept, in accordance with law, a separate civil action concerning newly incurred medical, nursing or other treatment and rehabilitation expenses.

Article 13

Where criminal conduct causes personal injury and criminal proceedings cannot proceed for a prolonged period because a criminal suspect or defendant has absconded, a people's court may accept a civil action seeking damages in accordance with law. If the conditions in Article 109 of the Civil Procedure Law are met, it may order advance execution on a party's application.

Article 14

Where, during enforcement of a civil adjudication, a people's court discovers that the facts form part of a criminal offense such as illegal fundraising, it shall rule to stay enforcement and promptly transfer the relevant materials to the authority handling the criminal case. If an effective criminal adjudication identifies the applicant for civil enforcement as a participant in the fundraising or an equivalent person, enforcement shall proceed under the criminal adjudication and civil enforcement shall terminate. Amounts already enforced under the civil adjudication shall be correspondingly deducted in the criminal adjudication or criminal enforcement proceedings.

Article 15

Where a party brings a civil action based on the same facts in any of the following circumstances in which criminal responsibility is not pursued in accordance with law, the people's court shall accept the action in accordance with law:

(1) The relevant authority decides not to open a case or decides to withdraw the case;

(2) The people's procuratorate decides not to prosecute;

(3) An effective adjudication declares the defendant not guilty or not criminally responsible;

(4) Other circumstances in which criminal responsibility is not pursued.

Where some facts in a criminal case fall within the preceding paragraph and a party brings a civil action based on those facts, the people's court shall accept the action in accordance with law.

In the circumstances specified in the preceding two paragraphs, civil liability shall be determined under the Civil Code and other applicable laws.

Article 16

Where a victim, their legal representative or a close relative brings an incidental civil action during criminal proceedings, and the people's court finds upon trial that the defendant's conduct does not constitute a crime, it may mediate the incidental civil action. If mediation fails, it may issue a combined criminal and incidental civil judgment; civil liability shall be determined under the Civil Code and other applicable laws.

Article 17

Where a person's act of concluding a contract constitutes criminal conduct, the contract's validity and whether it binds the principal or other relevant person shall be determined under the Civil Code.

Article 18

Where a legal representative, person in charge or agent maliciously colludes with a counterparty to conclude a contract in the name of a legal person or unincorporated organization, harming its lawful rights and interests and constituting criminal conduct, the people's court shall not uphold a party's claim that the contract is void under Article 154 of the Civil Code on malicious collusion.

The court shall not uphold the counterparty's claim that such a contract binds the legal person or unincorporated organization, unless that legal person or organization ratifies it.

Where the circumstances in the first paragraph cause loss to the legal person or unincorporated organization, the court shall uphold its claim for joint and several liability against the legal representative, person in charge or agent and the counterparty.

Article 19

Where a person's conclusion of a contract in the name of a legal person, an unincorporated organization or another person constitutes fraud, contract fraud, obtaining a loan by deception or a similar crime, and the counterparty seeks to hold that legal person, organization or other person, who is not implicated in the criminal conduct, civilly liable, the people's court shall distinguish the following circumstances:

(1) If the act of concluding the contract was authorized agency or constituted apparent agency, the court shall uphold, in accordance with law, the counterparty's claim that the contract binds the legal person, organization or other person and that they bear liability for breach;

(2) If the act was unauthorized agency and did not constitute apparent agency, the court shall not uphold such a claim. If the legal person, organization or other person was at fault, the court may order corresponding compensation by reference to Article 157 of the Civil Code.

Where a legal representative, person in charge or employee concludes a contract in the name of a legal person or unincorporated organization and the conduct constitutes fraud, contract fraud, obtaining a loan by deception or a similar crime, the preceding paragraph shall apply by reference to a counterparty's claim that the contract binds a legal person or organization not implicated in the criminal conduct and that it bears liability for breach.

Article 20

Where a person concludes a contract in the name of a legal person or unincorporated organization, unlawfully appropriates or misappropriates property obtained, and is found in an effective criminal adjudication to have committed occupational embezzlement, misappropriation of funds or a similar offense, the people's court shall uphold, in accordance with law, the counterparty's claim that the contract binds the legal person or organization and that it bears liability for breach. Compensation may be reduced if the counterparty was at fault in the occurrence of the loss.

Article 21

Where a debtor's conclusion of the principal contract constitutes criminal conduct and the creditor sues the guarantor, the people's court shall examine the validity of the principal contract in accordance with law. If that contract is valid but any of the following circumstances exists, the court shall uphold the guarantor's request, made within the statutory period for exercising the right, to rescind the guarantee contract:

(1) The debtor fraudulently induced the guarantor to provide the guarantee against its true intention, and the creditor knew or should have known of the fraud;

(2) The debtor coerced the guarantor into providing the guarantee against its true intention;

(3) Fraud, coercion or another ground for rescission existed on the creditor's part when it concluded the guarantee contract with the guarantor;

(4) Another ground for rescission of the guarantee contract exists.

Where the creditor seeks damages from the guarantor because the guarantee contract is void or rescinded, the court shall consider the guarantor's professional capacity, ability to understand the circumstances, relationship with the debtor and other factors to determine whether and to what extent the guarantor was at fault, and shall determine its liability accordingly.

Where the debtor's conclusion of the principal contract constitutes criminal conduct, the creditor failed to exercise reasonable diligence and was at fault in the conclusion of that contract and the occurrence of loss, the court shall uphold, in accordance with law, the guarantor's request for an appropriate reduction of liability.

Article 22

Where a civil case resumes after a stay under these Provisions and the parties dispute interest accruing during the stay, the people's court may arrange for full argument on that issue and, in light of the parties' submissions, reasonably determine the interest by considering whether and to what extent they were at fault, their ability to perform, the duration of the stay and other factors.

Article 23

Where laws, administrative regulations or other applicable provisions govern the handling of civil disputes involving crimes such as illegal fundraising, those provisions shall apply. Where no such provisions exist, these Provisions shall apply.

Article 24

These Provisions shall take effect on September 22, 2026.

If a judicial interpretation previously issued by the Supreme People's Court is inconsistent with these Provisions, these Provisions shall prevail.