On November 18, the Supreme People's Court (SPC) and the Supreme People's Procuratorate (SPP) jointly issued the Interpretation on Several Issues Concerning the Application of Law in the Handling of Criminal Cases Involving Refusal to Execute Judgments or Rulings (the "Interpretation"), which will take effect on December 1, 2024.

Comprising 16 articles, the Interpretation addresses the following key points: (1) specifying situations where individuals "have the ability to execute a judgment or ruling but refuse to do so, which involves serious circumstances;" (2) clarifying what constitutes "particularly serious circumstances;" (3) stipulating that the perpetrator who conceals or transfers assets before a judgment or ruling takes effect may be convicted of the crime of refusing to execute judgments or rulings; (4) establishing that a third party who assists in concealing or transferring assets may face criminal liability as an accomplice; (5) specifying circumstances for imposing heavier or lighter penalties; and (6) detailing procedures for recovering illegal proceeds and mitigating losses. Notably, the Interpretation provides that if a person, after the commencement of legal proceedings but before a judgment or ruling takes effect, engages in acts such as concealing or transferring assets to evade enforcement obligations, and such acts are confirmed after the judgment or ruling becomes effective, they may be deemed as having the ability to execute but refusing to do so, and if the circumstances are serious, the person may be held criminally liable for the crime of refusing to execute judgments or rulings. 

(Source: Supreme People's Court)