Enforcing Domestic PRC Arbitration Awards against Chinese Manufacturing Entities
Enforce domestic PRC arbitral awards against manufacturers by securing pre-award bank freezes via property preservation insurance and piercing corporate veils.
Restricting High-Level Consumption Order
Meaning
A judicial mandate issued by a people court prevents a debtor from engaging in non essential or luxury expenditures until a judgment debt is satisfied. The restricting high-level consumption order is a specific enforcement tool that prohibits activities such as staying in star rated hotels, purchasing real estate, or sending children to expensive private schools. It aims to ensure that the resources of the debtor are prioritized for the repayment of creditors rather than for maintaining an affluent lifestyle.
Prohibited Actions
Individuals under this order cannot purchase air travel tickets, book soft sleeper berths on trains, or buy high value insurance products. The restricting high-level consumption order also limits the purchase of vehicles and the renovation of houses. These restrictions are designed to be visible and impactful, making the daily life of a non compliant debtor significantly more difficult.
Corporate Impact
When a company is the subject of the order, its legal representative and senior management are also personally restricted from these luxury activities. The restricting high-level consumption order effectively ties the personal freedom of company leaders to the financial health and legal compliance of their firm. This creates a strong incentive for the management to resolve outstanding court cases.
Legal Basis
Authority for these orders is found in the enforcement regulations of the Supreme People Court. A restricting high-level consumption order is often issued simultaneously with a name being added to the list of dishonest judgment debtors.