Legal Consequences for Violating Public Security Administration Laws in China

Under Article 10 of the *Law of the People‘s Republic of China on Public Security Administration Penalties*, public security penalties include warnings, fines, administrative detention, and revocation of permits issued by public security authorities. For foreigners, an additional penalty of expulsion within a specified time limit or deportation may be imposed.
It should be noted that “administrative detention” under this Law is a form of administrative penalty and is different from criminal detention; it does not constitute a criminal record.
Expulsion within a specified time limit applies to ordinary violations. Deportation is a more severe penalty and applies only to cases where the violation of the Public Security Administration Penalties Law is serious.

Legal Consequences for Foreigners Violating Public Security Administration Laws in China
Common Violations and Penalty Standards

1, hotels failing to register foreign guests as required.

Under Article 56(1) of the Public Security Administration Penalties Law, where hotel staff fail to register the name, type and number of identification documents of foreign guests as required, a fine of RMB 200 shall be imposed.

2, disrupting public order.

Under Article 23 of the Public Security Administration Penalties Law, anyone who disrupts order at government offices, organizations, enterprises, public institutions, or public places without causing serious losses shall be given a warning, a fine, or administrative detention.

3, illegal residence.

Under Article 78 of the Exit and Entry Administration Law, any foreigner residing in China illegally shall be given a warning; if the circumstances are serious, a fine of RMB 500 per day of illegal residence (total not exceeding RMB 10,000) or administrative detention of not less than five days but not more than fifteen days shall be imposed.

4, harboring foreigners illegally residing in China.

Under Article 79 of the Exit and Entry Administration Law, any person who harbors or conceals a foreigner who has entered or resides in China illegally shall be fined not less than RMB 2,000 but not more than RMB 10,000; if the circumstances are serious, administrative detention of not less than five days but not more than fifteen days shall be imposed, together with a fine of not less than RMB 5,000 but not more than RMB 20,000.

5, illegal employment.

Under Article 80 of the Exit and Entry Administration Law, any foreigner who works in China illegally shall be fined not less than RMB 5,000 but not more than RMB 20,000; if the circumstances are serious, administrative detention of not less than five days but not more than fifteen days shall be imposed, together with a fine of not less than RMB 5,000 but not more than RMB 20,000.

Practical Cases

Case 1: Hotel front desk staff failed to register foreign guest information

In December 2025, a front desk staff member surnamed Tang at a hotel in Tacheng City, Xinjiang, failed to register the accommodation information of a Russian guest. The public security authority imposed a fine of RMB 200 under Article 56(1) of the Public Security Administration Penalties Law.

Case 2: Foreign student violently resisted law enforcement

In July 2019, a foreign student at a university in Fuzhou was stopped by traffic police for carrying a passenger on an electric bicycle in violation of regulations. The student refused to cooperate and pushed the traffic officer. The police imposed penalties on his traffic violations in accordance with the law, and his college took him back for further education.

Case 3: Illegal residence resulting in administrative detention

In October 2025, a Vietnamese woman entered China through Dongxing Port with her passport and later traveled to Wei County, Hebei Province. When she was apprehended, she was found to have been illegally residing in China. The public security authority imposed administrative detention of fifteen days under Article 78(1) of the Exit and Entry Administration Law.

A Costly Hire: How a Single Employee Cost a Company RMB 382 Million in Trade Secret Damages

Beijing AAA Technology Group, a machine tool manufacturer, discovered in 2019 that its former product manager, Tian, had systematically copied over 37,000 technical drawings and documents before leaving the company. Tian then joined Shenzhen BBB Machinery, using a pseudonym — and almost immediately became deputy general manager of a product line directly competing with Beijing Jingdiao’s core business.

 The evidence showed Tian had spent his final month at Beijing AAA downloading files 162 times from the company’s servers and copying files over 70,000 times to a shared computer before transferring everything to external drives. The timeline was seamless: leave Beijing AAA, join Shenzhen BBB, start competing — using stolen technical data. 

Beijing AAA sued in 2019, initially seeking RMB 92 million in damages, later raising the claim to RMB 382 million. The first-instance court awarded RMB 12.8 million. Both sides appealed.

How a Single Employee Cost a Company RMB 382 Million in Trade Secret Damages In late 2025, China’s Supreme People’s Court issued its final ruling: Shenzhen BBB’s infringement was “clearly malicious and of a serious nature.” The court multiplied the damages to RMB 382 million — thirty times the original award.

Key Points: 

  1. The damages calculation.

    The Supreme Court calculated that Beijing Jingdiao had invested RMB 363 million in R&D for the glass-grinding machines at issue. Shenzhen BBB and Tian effectively obtained that technology at near-zero cost — a direct measure of the harm and a basis for the substantial award.

  1. Where infringement is willful and of a serious nature, punitive damages may apply.

          The Supreme Court found “clearly malicious” conduct, evidenced by the scale of the theft (37,000+ documents), the use of a pseudonym during hiring, and the              rapid market entry using stolen technology. The multiplier effect — from RMB 12.8 million to RMB 382 million — reflects the punitive damages framework.

  1. Beyond monetary penalties.

        The court ordered Shenzhen BBB to destroy all physical and electronic copies of the stolen technical documents and to issue an internal notice to all                       shareholders, directors, officers, and employees, requiring each to sign a confidentiality and non-infringement commitment. The obligation to cease infringement continues until the trade secrets become publicly known — potentially forever.

  1. Enforcement actions.

After the judgment, Beijing AAA sought asset preservation. Shenzhen BBB’s 100% equity interests in two major subsidiaries — Yibin BBB and Zhejiang BBB— were frozen, representing RMB 400 million in value.

China’s courts are serious about trade secret protection. The 2025 Supreme People’s Court rulings, including this RMB 382 million award and a separate RMB 166 million award in another trade secret case, show a clear trend: willful infringement carries real, punitive consequences. For companies hiring talent from competitors, this case offers clear warnings.

Related Regulations:

Article 219 of the Criminal Code criminalizes trade secret theft. Under the 2025 Supreme People’s Court and Supreme People’s Procuratorate judicial interpretation, “theft” includes illegal copying, and “electronic intrusion” covers unauthorized or excessive access to computer systems to obtain secrets. Criminal liability attaches where losses exceed RMB 300,000 or illegal gains exceed RMB 300,000, with “particularly serious” consequences where the threshold is met at ten times the base amount.

The 2020 Supreme People’s Court Judicial Interpretation on Trade Secret Civil Cases provides detailed rules for calculating damages. Where a trade secret has been stolen and used, damages can be calculated based on the right holder’s lost profits, the infringer’s illegal gains, or a reasonable royalty. Where the secret has been made public, damages may include the secret’s development cost and commercial value. 

You may check our previous post for more information: The Protection of Trade Secrets in China

How Can I Send My Salary Home from China?

From time to time, we receive inquiries from our subscribers: “Is it true that there is a cap on the salary I earned in China when sending it back to my home country?” Or “Can I only send a maximum of 50,000 USD overseas each year?”

These questions reflect a common misunderstanding about China’s foreign exchange regulations. Let’s clarify the rules clearly to help you send your salary home legally and smoothly.

First, let’s correct the key misunderstanding: the so-called “50,000 USD annual cap” is a personal annual convenience quota for foreign exchange purchase and sale. This means that any individuals can enjoy a simplified process for foreign exchange purchase and remittance within 50,000 USD per year, without providing additional supporting documents.

For foreigners working in China, there is no upper limit on the amount of salary you can send overseas, provided that two core conditions are met:

1) You have paid personal income tax in accordance with China’s tax laws;How Can I Send My Salary Home from China?

2) The remittance is classified as non-business foreign exchange under the current account (such as family support, overseas living expenses, medical care, or education), which is fully compliant with China’s foreign exchange management regulations.

The 50,000 USD quota is just a “convenience threshold” — if you exceed this amount, you only need to provide relevant documents to prove the legitimacy of your income, and you can still remit all your after-tax salary overseas.

What Documents Do You Need to Prepare?

There is no unified national standard for the documents required, as specific requirements may vary slightly by bank and region. It is highly recommended that you contact your local bank in advance to confirm the details.

However, the document list from Bank of China, can serve as a reliable reference (especially for remittances exceeding the 50,000 USD annual quota):

  1. A valid employment contract signed between you and your employer (if it is in a foreign language, a Chinese translation with the translation company’s official seal may be required).
  2. Bank statements showing your salary deposits (to prove the source of funds).
  3. Personal income tax certification issued by the local tax authority (the most core document to prove that you have paid taxes in accordance with the law).
  4. Income certificate or salary slip issued by your employer (detailing your salary, bonuses, and other income items).
  5. A copy of your valid work permit (to prove your legal working status in China).

For remittances **within the 50,000 USD annual quota**, the process is simplified: you only need to provide your valid passport and bank card, and you can complete the foreign exchange purchase and remittance at the bank or through mobile banking without additional documents.

Relevant Regulations

Administrative Rules on Individual’s Foreign Exchange

Article 13: A non-domestic individual (foreigner) can convert legitimate renminbi income obtained in China under the current account into foreign exchange and remit it abroad at a bank by showing valid identity documents and relevant supporting materials.

Article 38 (3): Non-business foreign exchange under the current account refers to foreign exchange under current account items other than trade-related foreign exchange — which includes your salary remittance for family support, living expenses, etc..

Friendly Reminder:

Keep all relevant documents (tax certificates, employment contracts, bank statements) properly, as banks may conduct random inspections after remittance.

Cross-Border Contract Scams: Why They Still Target Businesses—and How to Stay Protected

For companies engaged in international trade, cross-border contract fraud is far from a thing of the past—it remains a persistent threat that preys on unsuspecting businesses, big and small. This article uncovers the most common deceptive tactics, with a focus on the notorious “signing ceremony” scam, and shares actionable strategies to help your business avoid falling victim to these costly traps.

One of the most prevalent scams in cross-border trade is the “Travel for Signing” ruse, which follows a predictable yet effective pattern. A foreign company is enticed with the promise of a high-value deal, then pressured to travel to China to “finalize the agreement” at an official signing ceremony. The scammers often sweeten the pot with claims of meetings with top executives or local government officials, creating an air of legitimacy that lulls victims into complacency.

Once the foreign representatives arrive, they are pressured into covering expensive expenses—lavish dinners, luxury hotel stays, and “administrative fees”—with repeated assurances that the scammer’s side will reimburse them or that payment for the deal is just around the corner. By the time the victim realizes something is wrong, the damage is already done.

We’ve heard from dozens of victims—many of them small to mid-sized European businesses—who have shared their harrowing experiences. Take, for example, a Spanish firm that spent months negotiating a promising deal, only to be invited to travel to Chengdu for a “formal signing.” The scammers had a professional-looking website, a registered domain, and even responsive customer service lines, making them seem entirely legitimate.

After signing the contract and shelling out thousands on overpriced meals and accommodations, the Spanish company returned home to find the scammer’s website taken down, phone lines disconnected, and all communication cut off—with no deal and no way to recover their losses.

So why do these scams continue to thrive, despite increased awareness? The answer lies in their low-risk, high-reward structure for scammers. Most of these frauds involve relatively small sums—usually between $5,000 and $10,000. For law enforcement agencies, these amounts are often too low to prioritize, and many lawyers are hesitant to take on cases where the chances of recovering lost funds are slim. This lack of accountability allows scammers to operate with little fear of consequences, targeting new victims year after year.Cross-Border Contract Scams: Why They Still Target Businesses—and How to Stay Protected

The good news is that with the right precautions, your business can significantly reduce its risk of falling prey to these scams. Below are key safeguards to implement before engaging in any cross-border contract negotiations:

1. Prioritize Rigorous Due Diligence 

Never take a counterparty’s legitimacy at face value. Before committing time, money, or resources, request and thoroughly review their business license, tax records, and any relevant certifications. Whenever possible, use independent third-party services to verify their existence, reputation, and track record in the industry.

2. Take Control of Travel Arrangements

Always book your own flights, hotels, and transportation. If a counterparty insists on arranging your travel or lodging—especially if they pressure you to use “preferred” vendors—this is a major red flag. Scammers often receive kickbacks from these vendors, adding to your financial losses.

3. Reject Unnecessary Travel for Signings

In today’s digital age, there is almost no legitimate reason for a foreign business to travel abroad solely to sign a contract. Remote signature tools, video conferences, and secure document sharing make in-person signings unnecessary. Any insistence on an in-person signing ceremony should be viewed with extreme skepticism.

Above all, trust your instincts. If a deal seems too good to be true, it almost certainly is. If a counterparty is pushy, evasive, or makes unrealistic promises, take a step back and re-evaluate. Vigilance is your best defense against cross-border contract scams.

In conclusion, cross-border contract scams are a reminder that caution and due diligence are non-negotiable in international business. By following these simple yet effective guidelines, your company can avoid the financial and reputational damage that comes with falling victim to fraud. Remember: the cost of prevention is far lower than the cost of recovery—and in many cases, recovery is impossible.

Riding E-Bikes in China for Foreigners: License Plates, Helmet Rules, and Penalties for Violations

Foreigners riding electric bikes in China must strictly follow rules regarding registration, helmet use, and other legal requirements to avoid fines or vehicle impoundment.

1. E-Bikes Must Be Registered

According to Article 18 of the Road Traffic Safety Law of the People’s Republic of China:

“Non-motor vehicles that shall be registered in accordance with the law may not be driven on roads until registered by the traffic control department of the public security organ.”

Riding an unregistered e-bike will result in a fine.Riding E-Bikes in China for Foreigners: License Plates, Helmet Rules, and Penalties for Violations

You may prepare these documents to register the E-bikes:

  1. Valid passport and accommodation registration certificate;
  2. E-bike purchase invoice;
  3. E-bike certificate of conformity and China Compulsory Certification (CCC) certificate.

After making an online appointment, submit the documents and have the vehicle inspected on-site. Registration can be completed on the same day.

Note: Assembled, modified, or e-bikes with a maximum speed exceeding 25 km/h will not be registered.

2. Other Requirements

Helmets are mandatory in most cities across China:

1.Riders must wear a helmet: Under Article 51 of the Road Traffic Safety Law and local regulations, riders without a helmet face a warning or a fine of 20–50 RMB.

2.Passenger rules: An adult may carry one child under 12 years old (who must also wear a helmet). Carrying anyone aged 12 or above is punishable by a fine.

Helmets must meet safety standards and be worn properly.

3. Common Violations and Penalties (with Legal Basis)

1)Riding an e-bike that does not comply with the Technical Specifications for Electric Bicycles shall be subject to a fine of 500–1000 RMB; in serious cases, the vehicle shall be confiscated.

2)Violations such as riding in motor vehicle lanes, going against traffic, running red lights, or exceeding 15 km/h shall result in a warning or a fine of 10–50 RMB (pursuant to the Road Traffic Safety Law of the People’s Republic of China).

3)Forging or misusing license plates: Plates confiscated, fine of 1000 RMB.

4. Unauthorized parking

Warning or fine of 20–50 RMB; vehicles may be impounded if the violation is not corrected.

5. Compliance Tips

1)Check local riding rules in your city;

2)Inspect your e-bike regularly;

3) Pay fines promptly with your passport if cited;

4)Carry your passport and accommodation registration certificate while riding.

5-Year Long-Term Residence Permit in China: Who Qualifies & How to Apply

According to the 12 immigration and exit-entry facilitation policies for the construction and promotion of free trade zones rolled out nationwide by the National Immigration Administration of China in 2019, foreigners who meet the policy requirements may be granted a 5-year work-type residence permit, avoiding the trouble of frequent renewal.

Under this policy, applications are allowed in two categories:

1. Eligible Ordinary Foreign Employees

Foreigners who have **obtained a work-type residence permit of more than 1 year twice consecutively with no illegal or irregular acts** may apply to the exit-entry administration authority of public security for a **5-year work-type residence permit** when applying for the third time.5-Year Long-Term Residence Permit in China: Who Qualifies & How to Apply

Applicants must meet all three conditions:

1) Have held a work-type residence permit of more than 1 year **twice consecutively**;

2) Have **no violation records**, such as overstay, illegal employment, public security or criminal penalties, and maintain good tax payment records.

Note: A reputable employer does not guarantee approval of a 5-year permit, but generally makes it easier to obtain a permit of more than 1 year for the first two applications.

2. Outstanding Overseas Talents

1) Foreign experts and scholars invited by key domestic universities, research institutes and well-known enterprises, as well as foreign high-level managerial and professional talents recognized by talent or science & innovation authorities above the municipal level, may apply for a multiple-entry visa or residence permit valid for up to 5 years.

2) Foreign talents and members of innovation and entrepreneurship teams introduced in key national development fields and industries may also apply for a residence permit valid for up to 5 years.

3) Foreigners with major outstanding contributions or specially needed by the state may recommend foreign members of their work teams and research support personnel to apply for a long-term visa or residence permit valid for up to 5 years.

4) Outstanding foreign students who have obtained a bachelor’s degree or above from key domestic universities and engage in innovation and entrepreneurship in China after graduation may apply for a residence permit valid for 2 to 5 years.

3. Application Procedures

1) Submit the application 30 days before the expiration date of your current visa or residence permit.

2) Online appointment: Log on to the official website of the local exit-entry administration or government service platform to make an appointment for “foreigner residence permit application.”

3) On-site submission: Submit all documents at the appointed time to the exit-entry administration of the municipal public security authority where you intend to reside. The staff will verify the materials and issue an acceptance receipt if complete.

4) The review period is approximately 15 working days. Application progress can be checked via the official website.

I am fired for missing supervisor’s message on Wechat over the weekend, What to do?

Mr. Wang was the Marketing Manager at Technology Company A. On May 24th, 2022 (a Saturday), at 8:56 PM, the company issued a notice via WeChat informing Mr. Wang that he was required to travel to Beijing for work the following day. At 9:56 AM on May 25th, Mr. Wang responded stating, “I wasn’t feeling well last night and went to bed early without checking my WeChat.” He then explained that due to personal matters at home, he couldn’t make it to Beijing. The company considered this action by Mr. Wang as a violation of their internal regulations which prohibit ignoring or evading cooperation requests from colleagues, and thus imposed a severe warning and deducted 4 points from his record. Subsequently, the company terminated Mr. Wang’s employment contract on the grounds that his repeated violations had cumulatively met the conditions for dismissal outlined in the company policy.

In December 2020, Mr. Wang filed for labor arbitration seeking compensation for the termination of his employment contract from Technology Company A, but his claim was initially unsupported. Following this, he brought the case to a first-instance court. The court ruled that Technology Company A should pay the severance compensation.I am fired for missing supervisor’s message on Wechat over the weekend, What to do?

Upon appeal, both parties took the case to a second-instance court. After reviewing the matter, the appellate court opined that company rules and regulations typically regulate behaviors during working hours and within the workplace, and should not be extended to cover off-duty rest periods outside regular work hours. Mr. Wang did not receive the company’s instructions regarding overtime work and travel during the weekend due to reasonable circumstances, which cannot be equated with neglecting real-time directives or collaborative demands during work hours.

Moreover, according to China’s Labor Law, except under statutory circumstances, employers can only extend working hours after reaching an agreement with employees. This means that workers have the right to refuse requests for overtime work. In this instance, when the company penalized Mr. Wang for failing to travel for work, deeming it as evasion of colleague collaboration, the court viewed this punishment as inappropriate since it effectively punished Mr. Wang for refusing overtime. The court further held that Mr. Wang did not repeatedly violate company rules and thus Technology Company A was obligated to pay the severance compensation for the termination of the employment contract.

Legal interpretation: In the digital age, many employers use platforms such as work WeChat groups, QQ groups, and emails to issue work orders to employees during their rest time. Even if these tasks require mere replies or simple online operations, they undoubtedly infringe upon the employee’s right to rest.

Employers should fully respect and protect the employees’ right to rest, refraining from issuing work orders or requirements during non-working hours. If there are exceptional circumstances or emergencies, employers may agree beforehand with employees to keep communication devices accessible for urgent work directives. In such standby situations, appropriate compensation should be provided.

In conclusion, the court decided that Mr. Wang’s situation did not warrant the penalties imposed by Technology Company A, and thus upheld the ruling that the company must provide the compensation for the termination of his employment contract.

Pets Become Sky-High Killers-Who Should Pay for a Lost Life?

In late 2024, a child playing in a Guangdong Shaoguan residential compound died after being struck on the head by a turtle falling from the 15th floor. The court ruled that Zhang, the turtle’s owner, must pay 1.28 million yuan in compensation, while the property management company was exempted from liability due to lack of evidence of negligence. This bizarre case shines a light on the legal complexities of high-rise falling objects and pet ownership responsibilities. Pets Become Sky-High Killers-Who Should Pay for a Lost Life?

Under Article 1245 of the Civil Code, pet owners bear strict liability for harm caused by their animals, unless they can prove the victim’s intentional misconduct or gross negligence. In this case, Zhang kept the turtle in a high-rise without protective measures, allowing it to climb and fall. The court found a direct causal link between Zhang’s negligence and the child’s death, holding him fully liable for the tort.

Regarding the property management company, Article 1254 of the Civil Code stipulates that managers are only liable if they fail to take necessary safety precautions. Since the parents could not prove the company neglected inspections or lacked safeguards, the court ruled it blameless. “Routine patrols cannot predict individual pet-related fall risks,” the judge noted, “unless the company knew about high-rise pet ownership but failed to dissuade it, or ignored repeated similar incidents.”

This is not an isolated incident. Data shows pets or pet items account for 15% of high-rise falling object cases in China. The physical risks of keeping pets in tall buildings are far greater than commonly understood—even “low-risk” pets like turtles require special management, such as enclosed balconies and protective nets.

“Even a seemingly ‘harmless’ pets like turtles demand extra caution,” explains Wang Wei, a partner at Beijing Zhongwen Law Firm. “High-rise environments inherently pose fall risks. Owners must implement physical barriers like enclosed balconies; otherwise, they are negligent.”

While the property management company avoided liability here, it highlights the need for stronger public safety measures: installing anti-litter cameras, regular hazard inspections, and clear pet management rules. A Shanghai judge noted that in cities with recurring falling object incidents, property managers have been held 10-20% liable for failing to install surveillance or promulgate prohibitions. The uniqueness of this case—being a single, isolated incident—prevented attributing blame to systemic management flaws.

Legally speaking, Article 1245 makes pet owners virtually liable for any harm their animals cause, regardless of intent. The message is clear: pet ownership carries inherent responsibilities, especially in high-rise settings where a moment’s negligence can lead to fatal consequences.

Relevant Legal Provision:

Article 1245 of the Civil Code: If a domestic animal causes harm to others, the animal breeder or manager shall bear tort liability; however, if it can be proven that the harm was caused by the victim’s intentional act or gross negligence, the breeder or manager may be exempted from or bear reduced liability.