China is taking steps to enhance the regulation of administrative law enforcement involving enterprises, aiming to reduce excessive inspections, arbitrary fines, and improper asset seizures, while improving the focus and effectiveness of supervision, officials said.

Since launching a nationwide special operation in March 2025, authorities have addressed over 66,000 reports of problematic law enforcement practices connected to businesses, enabling companies to recover approximately 30.7 billion yuan ($4.51 billion) in losses, according to the Ministry of Justice. During this period, administrative inspections of enterprises declined by 34 percent compared with the previous year, while the rate of identified issues during inspections rose by nearly 19 percentage points. Officials highlighted this trend as evidence that enforcement should prioritize precision over frequency.

The special operation targets several concerns, including excessive inspections, arbitrary fines and fees, improper asset seizures, irregular cross-regional enforcement, and profit-driven enforcement activities. These priorities align with directives contained in this year’s Government Work Report and the framework outlined in China’s 15th Five-Year Plan (2026-30), which emphasize improving long-term mechanisms for regulating business-related law enforcement.

Hu Weilie, vice minister of justice, noted that after more than a year of concentrated reform, tangible progress has been made. Authorities have dismantled over 7,000 law enforcement entities that failed to meet legal standards, removed more than 300,000 unqualified personnel from enforcement roles, and abolished upwards of 400,000 redundant enforcement items. “The effect of regulation is not measured by quantity, but by quality; not by frequency, but by precision,” Hu said.

Despite these reforms, Hu emphasized that strengthening enforcement regulation does not mean weakening oversight. Crucial areas affecting public health and safety, including food and drug safety, workplace safety, and environmental protection, continue to be strictly supervised under rigorous standards.

Local governments have also introduced policies to mitigate the burden on enterprises, such as exempting first-time or minor violations from penalties, which has spared companies over 11 billion yuan in fines. Collaboration between judicial administrative departments and finance and audit authorities has focused on monitoring unusual increases in revenue drawn from fines and confiscations, alongside efforts to remove performance evaluation metrics tied to such revenue.

To further address inconsistencies in enforcement standards across regions, the Ministry of Justice has worked with relevant departments to provide guidance on practical problems faced by both businesses and frontline law enforcement personnel. More than 330 measures have been implemented nationwide to standardize enforcement criteria.

Hu highlighted the importance of enforcement actions, stating that while they might be routine for officers, they can have significant impacts on enterprises and the broader public. Moving forward, authorities plan to enhance transparency by improving systems for publicizing enforcement activities, fully documenting enforcement processes, and reviewing major enforcement decisions.