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CIRCULAR OF THE SUPREME PEOPLE'S COURT ON FURTHER STRENGTHENING THE TRIAL WORK TO PROVIDE POWERFUL JUDICIAL SAFEGUARD FOR THE RECTIFICATION AND REGULATION OF THE MARKET ECONOMIC ORDER
 
(No.57 [2003] of the Supreme People's Court promulgated on May 6, 2003)
     
     
SUBJECT : COURT; TRIAL WORK
ISSUING DEPARTMENT : THE SUPREME PEOPLE'S COURT OF THE PEOPLE'S REPUBLIC OF CHINA
ISSUE DATE : 05/06/2003
IMPLEMENT DATE : 05/06/2003
LENGTH : 2,405 words
TEXT :
According to the work arrangements of this year of the Central Party and the spirit of the first meeting the Tenth National People's Congress, the State Council has determined to take it as an important work to continue the vigorous rectification and regulation of the market economic order, and has held a work meeting concerning the rectification and regulation of the market economic order of the whole country, which presented the objectives of work of the following five years and the focus of this year on the basis of summing up the work of the previous phase. It is an important task of the people's courts for the time being and for the future period to bring into full play the function of the judicial organs, to severely punish the criminals that seriously impair the market economic order, to protect the legitimate rights and interests of citizens, corporations, and other organization, to ensure the administration according to law by the people's governments at various levels and the relevant administrative enforcement departments, and to provide powerful judicial safeguard for the rectification and regulation of the market economic order. For this purpose, the following circular is hereby made:


I. BE FULLY AWARE OF THE SIGNIFICANCE OF THE RECTIFICATION AND REGULATION OF THE MARKET ECONOMIC ORDER

Rectification and regulation of the market economic order is an important content of the establishment and perfecting of the socialist market economic system, has bearings on the overall situation of the socialist modernization construction, and is in conformity with the fundamental interests of the most people. Phased achievements have been made in the rectification and regulation of market economic order carried out over the whole country since April 2001, the situation of economic disorder has been initially changed, and the people are basically satisfied. In the last two years, the people's courts at various levels of the whole country have strengthened the trial work in an all-around way, and have powerfully safeguarded and effectively promoted the rectification and regulation of the market economic order. However, a lot of cases of economic disorder still exist at the present time, some sharp contradictions and problems have not been completely settled, and it is still a very hard task to continue to rectify and regulate the market economic order. The illegal economic activities and crimes, such as making fake or poor quality commodities, evading taxes and cheating for foreign exchange, committing commercial frauds, breaking rules and losing creditworthiness, etc., have seriously impaired the interests of the people, or even harmed the life and safety of the people, obstructed the expansion of domestic demands and the economic development, impaired China's international image and the opening to the outside world, undermined the social credit standing and corrupted the social morale. Therefore, continual vigorous rectification and regulation of the market economic order is not only an active demand for safeguarding the present economic normal operation, strengthening and developing the favorable trends of the national economy, but also a major step to establish and perfect the socialist market economic system, and fully promote the advancement of social civilization, and it bears not only economic significance, but also political significance. The courts at various levels shall, from the view of implementing the spirit of the Sixteenth Congress of the CPC and the important thought of "Three Represents", be fully aware of the importance, urgency, constancy and long lasting of the rectification and regulation of the market economic order, unify the thoughts, strengthen the leadership, organize and mobilize all the judges and other functionary to carry forward the tradition and style of no fear for tiredness and consecutive working, to actively devote themselves to the trial work for rectification and regulation of the market economic order with full political enthusiasm and high political responsibility, to cooperate closely with the relevant departments and other judicial organs, to ensure the timely conclusion of the cases filed with the courts according to law, and to guarantee and promote the smooth progress of this work.


II. CONTINUING TO SEVERELY PUNISH ACCORDING TO LAW THE CRIMES SERIOUSLY IMPAIRING THE MARKET ECONOMIC ORDER

Severe punishment according to law of the crimes impairing the market economic order is an important content of the rectification and regulation of the market economic order, and is the legal duty the judicial organs shall perform according to law. Under the circumstances of existence of a large number of illegal activities and crimes in the field of market economy, the criminal punishment shall be further intensified. Only continual high pressure may create favorable environment and conditions for the rectification and regulation work. The courts at various levels shall firmly implement the principle of severe punishment against the criminals seriously impairing the socialist economy, and with respect to the criminal cases that seriously impair the market economic order and are filed with the courts, the courts shall convict the crime and determine the sentence strictly in accordance with the criminal law, the decisions of the Standing Committee of the National People's Congress on amending the criminal law, the amendments, as well as the judicial interpretations of the Supreme People's Court. The combat of this year shall be emphasized on the crime of fake or poor quality food, drugs, and agricultural materials, the crime of smuggling, the crime of evading, resisting, or cheating for taxes, the crime of intellectual property infringement, the crime of illegal pyramid sale or disguised pyramid sale, the crime of contractual fraud and financial fraud, etc. The local courts shall give prominence to such emphasis and pay attention to the actual effects according to the local actualities. The major and serious cases with large amounts of illegal gains, serious circumstances, grave damages, strong complaints of people, and gross losses to the interests of the state and people, shall be more emphasized, close attention shall be paid to the trial of such cases according to law and the criminals shall be severely punished. For the present time, the combat shall focus on the crimes damaging the market economic order by taking advantage of the work of prevention and treatment of SARS, with respect to the crimes of production and sale of fake or poor quality articles of infectious disease prevention and treatment, of manufacturing and sale of fake and poor quality drugs, as well as medical equipment and medical sanitation materials not meeting the standards for protection of human health, of releasing falsified advertisements to market commodities and cheat for property and money, of monopolizing the supply of goods, hoarding and profiteering, and driving up the price by taking advantage of the prevention and treatment of infectious disease, as well as other crimes seriously impairing the market economic order, the conviction and punishment shall be given pursuant to the criminal law in a firm and timely manner.


III. HANDLING THE CASES STRICTLY ACCORDING TO LAW, PAYING ATTENTION TO THE EMBODIMENT OF POLICIES, AND ENSURING THE LEGAL AND SOCIAL EFFECTS OF THE TRIALS

The courts at various levels shall be firm and prudent in the trial of criminal cases impairing the market economic order. First, crime shall be strictly distinguished from non-crime, the interruption of local protectionism and departmental protectionism shall be firmly excluded, not only replacement of crime by penalty and indulging of crimes shall be prevented, but also punishing ordinary administrative illegal acts and civil infringing acts as crimes shall be prevented. Secondly, the cases shall be handled strictly according to law, the admission of factual evidence, application of laws, and judicial procedures shall be rigidified, and quality of case handling shall be ensured and the trial efficiency shall be improved. Thirdly, the application and execution of property penalties shall be rigidified, where the law provides concurrent imposition of fine or confiscation of property, such penalty shall be imposed firmly; where the law provides that fine or confiscation of property may be imposed, such penalty shall be also imposed as a general principle. At the present time, the courts at various levels shall pay special attention to take measures to solve the problems of failure to execute or inefficient execution of property penalties, to earnestly strengthen the execution of property penalties, and to bring into play its effects in the punishment and prevention of crimes to a maximum extent. Lastly, the principles of a legally prescribed punishment for a specified crime, and of suiting punishment to crime, and the criminal policies of combination of punishment and leniency shall be strictly implemented. Crimes deserving severe punishment shall be severely punished according to law, and crimes deserving lenient punishment shall be handled leniently according to law. With respect to the criminals with the meritorious deeds, such as surrendering themselves to justice, or expose other crimes, etc., or with other statutory circumstances for lightening, mitigating or exempting the punishment, the punishment shall be lightened, mitigated, or exempted according to law, and thus to differentiating and disintegrating the criminals.


IV. THE SAFEGUARD ROLE OF CIVIL AND COMMERCIAL TRIALS, ADMINISTRATIVE TRIALS AND EXECUTION SHALL BE BROUGHT INTO FULL PLAY IN THE RECTIFICATION AND REGULATION OF THE MARKET ECONOMIC ORDER

The civil and commercial trials, administrative trials and execution by the people's courts directly regulate the economic and social relations according to law, and is closely connected with the rectification and regulation of the market economic order. The people's courts shall try civil and commercial cases in a timely manner according to law, and shall punish the law-breaking and contract-breaching acts, such as infringing intellectual property rights, fraudulent operation, defaulting or avoiding debts in bad faith, etc. through regulating the property, credit, and contract relations among the citizens, corporations, and other organizations, etc., and thus to powerfully safeguard the fair competition and market order, and to maintain the legitimate rights and interests of the citizens, corporations and other organizations, and the safety of market transactions. Where any suspect economic crime is found out during the civil proceedings, the case shall be handled strictly in accordance with the Provisions of the Supreme People's Court on Several Issues Concerning the Suspect Economic Crimes Involved in the Trial of Economic Dispute Cases, and the traces and materials of the suspected crime shall be transferred to the relevant public security organs or procuratorates for investigation and punishment. In the trial of administrative cases, the people's courts shall see to support and guarantee the administrative organs' exercise of authority according to law, and shall support and maintain the specific administrative acts the administrative organs conducted according to law in the rectification and regulation of the market economic order. At the same time, the people's courts shall also see to protect the legitimate rights and interests of the market subjects, the people's courts shall accept in good time and try justly the administrative actions filed by citizens, corporations, or other organizations against the administrative organs for their failure to perform the statutory duties of protecting fair competition, as well as the administrative actions requesting the administrative authorities to prosecute the legal liabilities of the parties making or selling fake goods. Powerful measures shall be taken to earnestly strengthen the execution work. Effective court judgments and other legal documents shall be firmly executed according to law, and thus to guarantee that the subjects of rights can really have the legally recognized property rights, and to earnestly safeguard the legitimate rights and interests of the market subjects and the order of market economy.


V. ACTIVELY PARTICIPATING IN THE COMPREHENSIVE TREATMENT OF MARKET ECONOMIC ORDER IN COMBINATION WITH THE TRIAL

Rectification and regulation of the market economic order is a comprehensive systematical project, which does not only concern the apparent but also the essence. The people's courts' trial activities can play an important role in the correction of both the phenomenon and the essence. The people's courts at various levels shall, at the same time of handling the cases, see to finding out the omissions and hidden risks in the administration systems and links, present timely judicial suggestions, and remind and urge the relevant departments and entities to perfect the system, strengthen administration, and prevent the occurrence of crimes and disputes. The trial of cases related to the rectification and regulation of the market economic order shall be combined with the publicity and education of the legal system of socialist market economy to the whole society. The typical cases that are of education value shall be selected to have their judgments pronounced to the public at the place or entity of occurrence of the case, and wide legal publicity shall be carried out through the news media and by various forms, such as comments on particular cases, etc., to educate the mass people and to improve the sense and ability of the whole nation to guarantee and safeguard their legitimate rights and interests by the means of law. Through the trial activities, the publicity of rule according to law and rule by virtue shall be strengthened, the senses of rule of law and of good faith of the whole nation shall be enhanced, and the socialist business ethics morale of voluntary obedience of law and good faith shall be formed in the whole society. The courts at various levels shall actively assist the Supreme People's Court in the supervision of handling of major and important cases and in the promulgation of judgments through the news media, with respect to the major and important cases the handling of which is supervised by the Supreme People's Court, the courts shall strengthen the communication and contact and submit the information in good time strictly in accordance with the requirements of the relevant circulars of the Supreme People's Court. Once an action has been filed with a court, the bill of compliant shall be submitted to the Supreme People's Court level by level. Before the court session is opened or the judgment is pronounced, the situation shall be circulated to the Supreme People's Court, and if the case has been determined by the Supreme People's Court as one to be publicized and reported, the relevant court shall actively assist in the relevant work. The higher courts at various levels shall further strengthen their guidance in the relevant cases they supervise within their respective jurisdictions, shall control the trial schedule and have a clear idea of the situation, shall assign special contact persons to assume the urge and report work, and submit the progress of the cases to the Supreme People's Court in good time at the end of each month.
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