Recent developments indicate a shift in criminal enforcement practices in China, particularly regarding jurisdictional challenges and case delays linked to Public Security Bureaus (PSBs). This article provides insights into the stricter enforcement measures adopted by Chinese authorities, including new directives from the Ministry of Public Security (MPS), and their implications for brand owners and legal practitioners.
In 2021, the MPS introduced the "Seven Provisions on Prohibiting Profit-Seeking Law Enforcement by Public Security Organs," emphasizing adherence to jurisdictional protocols and enhanced dispute resolution mechanisms.
Despite very clear regulations, in recent years, a phenomenon of illegal cross regional law enforcement known as "offshore fishing" has caused widespread social attention and concern. The "offshore fishing" law enforcement often adopts measures such as arresting people, imposing fines, confiscating, and freezing assets, which not only harms the property and personal rights of private entrepreneurs, but also may cause private enterprises to collapse due to a broken financial chain and unemployment, disrupting business confidence and social stability.
Conversely, legitimate cross-jurisdictional enforcement is sometimes used by rights holders, particularly when local PSBs lack expertise in IP issues, have limited capacity, or when there are concerns about local protectionism.
Following our recent meeting with the Jing’an District PSB in Shanghai regarding cross-jurisdictional criminal IP case enforcement, we learned of new internal directives aimed at optimizing the business environment and reducing resource waste. These directives emphasize strict adherence to the Regulations on the Jurisdiction of Cross Provincial Corporate Crime Cases issued on March 5, 2025.
Key points include:
1. Primary Jurisdiction: Crimes committed across provinces will generally fall under the jurisdiction of the police in the main crime location. If the crime locations are unclear, jurisdiction will default to where the enterprise is located. Cybercrimes are specifically noted to be handled under these regulations.
2. Individual Operators: The previous cross-jurisdictional enforcement model (which is very common and frequently used by brand owners) may continue for crimes committed by individual business operators, such as underground factories or online retailers, allowing for jurisdiction through forum shopping.
3. Exceptions: In cases of jurisdiction disputes or when applying investigative measures, the MPS will coordinate jurisdiction, primarily based on the main crime location.
This clearer guidance is expected to enhance future criminal enforcement efforts.
The recent changes have led to heightened evidential requirements for ongoing criminal cases. PSBs are exercising greater caution when deciding on jurisdiction and case filings. Brand owners often reported cases to different PSBs, but this practice now faces increased scrutiny.
Since the 2025 Spring Festival, PSBs in major cities have become more selective, prioritizing cases based on potential economic and social impacts. Some PSBs now require significant sample purchases to establish jurisdiction, raising compliance risks.
To navigate these changes effectively, we recommend the following strategies:
1. Focus on Stricter PSBs: Engage with PSBs in Beijing and Shanghai, ensuring robust evidence collection to meet their heightened standards.
2. Strengthen Relationships with Local PSBs: Develop cooperative ties with territorial jurisdiction PSBs that can handle cases without cross-regional complexities.
3. Avoid Challenging Jurisdictions: Steer clear of PSBs in areas known for local protectionism and compliance risks, such as Shantou and Fujian.
4. Enhance Evidence Collection: Invest in recruiting skilled evidence specialists and training programs to bolster evidence-gathering capabilities, ensuring compliance with new standards.
5. Advocating Timely Enforcement: Given the varying levels of experience among PSBs, brand owners may need to assist local PSBs in strengthening IP protection and ensuring timely enforcement.
The evolving landscape of criminal enforcement in China presents both challenges and opportunities. By adapting our strategies to align with the stricter requirements of PSBs and leveraging new guidelines, we can enhance our effectiveness and better serve our clients in navigating ongoing and potential criminal cases in a compliant way. We will continue to monitor these developments and provide updates to ensure collaborative efforts yield optimal solutions.
Despite short term difficulties with delays, more stringent evidence requirements and navigating more local authorities to deal with issues had on, in the long term, we expect the system to become more transparent, legalistic and raise the standard of local law enforcement across China.
The content of this article is intended to provide a general guide to the subject matter. Please reach out to us for advice about your specific circumstances.
