Intermediate Economic Law cheat sheet

Civil juristic acts require capacity, genuine intent, and legality; acts by persons with no capacity are void, while acts by limited-capacity persons are voidable pending ratification by a legal representative.

Limitation periods under the Civil Code run three years from knowledge of the right and the obligor; the maximum extension from the date of infringement is twenty years, subject to court-approved extension.

Void acts include fraud or duress harming state interests, malicious collusion harming others, and violation of mandatory public-order provisions; void acts have no legal effect from the outset.

Voidable acts (fraud, duress, gross misunderstanding, unconscionability) must be challenged within one year of knowledge, or ninety days for gross misunderstanding; the right lapses if not exercised.

A principal is bound by an agent's acts within authority; unauthorized agency binds the agent unless ratified, and apparent agency protects a good-faith third party who reasonably relied on authority.

The Civil Code recognizes eight general personality rights: life, body, health, name, portrait, reputation, honor, and privacy; infringement remedies include cessation, apology, and damages.

Tort liability follows fault, presumption of fault, or strict liability depending on the statutory category; joint tortfeasors are jointly and severally liable to the victim.

Property rights are absolute and exclusive; ownership includes possession, use, income, and disposition, and bona fide acquisition protects a good-faith purchaser who paid reasonable consideration and completed registration or delivery.

General partners bear unlimited joint and several liability for partnership debts; limited partners are liable only up to their subscribed capital contributions.

A limited partnership requires at least one general partner and at least one limited partner; a general partner may not be a wholly state-owned company, state-owned enterprise, listed company, or public-interest institution.

Partnership affairs are decided by unanimous consent unless the partnership agreement provides otherwise; amendments to the agreement, admission of new partners, and dissolution require unanimous consent.

A partner transferring an interest to an outsider requires consent of all other partners unless the agreement allows otherwise; other partners hold a right of first refusal on equal terms.

A general partner withdrawing without cause before the term expires is liable for losses caused by the premature withdrawal; withdrawal takes effect thirty days after notice if the term is indefinite.

New partners admitted to a general partnership bear unlimited joint liability for pre-admission debts; limited partners are not liable for pre-admission debts beyond their contributions.

A partnership dissolves on expiration of the term, unanimous decision, loss of a required partner, revocation of business license, or court dissolution; liquidation precedes deregistration.

A limited liability company has at most fifty shareholders; a joint stock company requires at least two promoters, and at least half of promoters must be domiciled in China.

Shareholders of an LLC exercise preemptive rights on transfer of equity to outsiders on equal terms unless the articles provide otherwise; the transferor must notify other shareholders in writing.

The registered capital of an LLC must be paid within five years of establishment under the 2023 revision; joint stock companies must have fully paid capital before establishment.

A company may not distribute profits before covering losses and allocating statutory reserves; statutory reserve is ten percent of after-tax profit until it reaches fifty percent of registered capital.

Directors, supervisors, and senior managers owe duties of loyalty and diligence; they may not self-deal, usurp company opportunities, or compete with the company without shareholder approval.

A shareholder who abuses limited liability to evade debts and seriously harm creditors is subject to piercing of the corporate veil and personal joint liability.

A joint stock company's shares may be transferred freely, but promoters may not transfer shares within one year of establishment, and directors and senior managers face annual transfer caps of twenty-five percent of holdings.

Bankruptcy proceedings may be initiated when a debtor cannot pay debts due and its assets are insufficient or it is clearly insolvent; creditors may petition after a debt is due and unpaid.

After court acceptance, individual repayments to creditors are void, and enforcement against the debtor's property must be suspended; secured creditors may still enforce security.

The administrator may avoid transactions within one year before acceptance: gratuitous transfers, transactions at unreasonable prices, providing security for unsecured debts, early repayment, and abandonment of claims.

The administrator may avoid fraudulent transfers made within one year and preferential repayments to related parties within one year; the look-back for ordinary preferences is six months.

Claims are paid in order: bankruptcy expenses and common-benefit debts, employee wages and social insurance, taxes, then ordinary bankruptcy claims; secured claims are paid from the secured property first.

Reorganization plans must be approved by each creditor class and confirmed by the court; a plan may be crammed down if fair and feasible and dissenting classes are not unfairly discriminated against.

A settlement agreement requires approval by creditors holding more than half of unsecured claims representing at least two-thirds of the total unsecured amount.

Public issuance of securities requires registration with the securities regulator; issuers must disclose a prospectus and cannot issue before registration is effective.

Prospectuses and periodic reports must be true, accurate, and complete; issuers, directors, and underwriters bear liability for false statements unless they prove no fault.

Insider trading is prohibited; insiders may not trade, tip, or advise others using material nonpublic information until two trading days after public disclosure.

An investor acquiring five percent of a listed company's shares must report and disclose within three days and may not trade during that period; each five percent increment triggers the same duty.

A tender offer triggers when an investor's stake reaches thirty percent; the offer must be made to all shareholders on equal terms, and the offer period is at least thirty days.

Manipulation of the market includes wash sales, matched orders, continuous trading to influence price, and虚假 orders; violators face disgorgement and fines of up to ten times illegal gains.

The Securities Law imposes administrative fines for illegal disclosure up to ten million yuan, and investors may sue for civil damages caused by false statements, insider trading, or manipulation.

A contract forms when an offer is accepted; acceptance takes effect when it reaches the offeror, and an offer may be withdrawn before it reaches the offeree or revoked before acceptance.

Standard-form clauses that unreasonably exempt the drafter's liability, increase the other party's burden, or exclude main rights are void; ambiguous clauses are interpreted against the drafter.

A party may terminate for fundamental breach, anticipatory breach, force majeure defeating purpose, or delay after demand; termination notice takes effect on reaching the other party.

Damages for breach equal the loss caused, including lost profits, but may not exceed the loss foreseeable at contract formation; mitigation failure bars recovery for avoidable loss.

The penalty clause may be adjusted by the court if excessively higher or lower than actual loss; typically, exceeding thirty percent above actual loss is deemed excessive.

A guarantor is liable according to the guarantee contract; if the mode is unclear, it is presumed to be general guarantee, under which the guarantor may assert the debtor's defenses first.

Concurrent performance applies when both parties owe obligations; a party may suspend performance if the other's performance capacity clearly deteriorates and no adequate security is provided.

Real property rights transfer on registration; movable property rights transfer on delivery, and registration of movables serves only as a defense against good-faith third parties.

Mortgage of real property requires written contract and registration; the mortgage right is established on registration, and the mortgagee has priority over unsecured creditors.

Pledge of movables requires delivery of possession; a pledge of rights such as receivables or equity requires registration with the relevant authority.

A lien arises when a creditor lawfully possesses the debtor's movable property and the debtor fails to perform; the lienholder may retain the property and has priority.

The guarantee period defaults to six months if not agreed; if agreed, it runs from the due date of the principal debt, and the creditor must claim within that period.

A maximum-amount mortgage secures debts arising within an agreed period up to a cap; the secured claim is determined at the end of the period or on the date of claim fixation.

Security interests may not be created over property prohibited by law, such as public welfare facilities; a mortgage over illegally constructed buildings is void.

VAT standard rate is thirteen percent for goods, nine percent for transportation, construction, and real estate, and six percent for modern services; small-scale taxpayers use a three percent levy rate.

VAT taxpayers may deduct input tax only with valid special invoices or other lawful vouchers; input tax on simplified-tax items, exempt items, and collective welfare is not deductible.

Corporate income tax applies at twenty-five percent; small low-profit enterprises enjoy a reduced effective rate, and high-tech enterprises pay fifteen percent.

Corporate income tax taxable income equals total revenue minus deductible costs, expenses, losses, and tax-exempt income; charitable donations are deductible up to twelve percent of annual profit.

Individual income tax comprehensive income (wages, labor remuneration, author's remuneration, royalties) is taxed at three to forty-five percent after a sixty-thousand-yuan annual deduction and special deductions.

Labor remuneration income is reduced by twenty percent before inclusion, and author's remuneration is further reduced to seventy percent of the reduced amount for tax purposes.

Annual comprehensive income over 960,000 yuan is taxed at forty-five percent; the basic deduction is 60,000 yuan per year, and special additional deductions cover children's education, housing, and elderly care.

Administrative penalties include warnings, fines, confiscation, suspension of license, and administrative detention; detention may not exceed fifteen days per violation.

An administrative act may be revoked if it lacks factual basis, applies wrong law, violates procedure, exceeds authority, or is obviously improper; revocation restores the prior status.

Citizens may apply for administrative reconsideration within sixty days of knowing the act; the reconsideration organ decides within sixty days, extendable by thirty days.

Administrative litigation must be filed within six months of knowing the administrative act; the defendant is the agency that made the act, and the burden of proof lies on the defendant.

The principle of proportionality requires administrative measures to be necessary and to cause the least harm; excessive measures may be invalidated by the court.

A hearing must be held before imposing major penalties such as large fines, revocation of license, or detention; the party may request a hearing and cross-examine evidence.

Administrative compulsion includes compulsory enforcement and immediate compulsion; enforcement requires a written decision and a demand performance period before seizure or auction.

Arbitration requires a written arbitration agreement designating an arbitration commission; absent such an agreement, the court has jurisdiction over the dispute.

Arbitration awards are final and binding; a party may apply to set aside an award within six months on grounds such as no agreement, excess of authority, or procedural violation.

A court may refuse enforcement of an arbitration award only on statutory grounds; the merits are not reviewed, and the party must apply to the intermediate court.

Civil first-instance cases are heard within six months of docketing; simplified procedure applies within three months for simple cases, and small-claim procedure within two months.

Jurisdiction generally lies with the court of the defendant's domicile; contract disputes may also be heard by the court of performance, and torts by the court of the tortious act.

The burden of proof lies on the party asserting a fact; evidence obtained illegally or without cross-examination may not be admitted as a basis for judgment.

A party dissatisfied with a first-instance judgment may appeal within fifteen days, or ten days for a ruling; the second-instance court may uphold, modify, or remand the case.

Civil juristic acts require capacity, genuine intent, and legality; acts by persons with no capacity are void, while acts by limited-capacity persons are voidable pending ratification by a legal representative.

Limitation periods under the Civil Code run three years from knowledge of the right and the obligor; the maximum extension from the date of infringement is twenty years, subject to court-approved extension.

Void acts include fraud or duress harming state interests, malicious collusion harming others, and violation of mandatory public-order provisions; void acts have no legal effect from the outset.

Voidable acts (fraud, duress, gross misunderstanding, unconscionability) must be challenged within one year of knowledge, or ninety days for gross misunderstanding; the right lapses if not exercised.

A principal is bound by an agent's acts within authority; unauthorized agency binds the agent unless ratified, and apparent agency protects a good-faith third party who reasonably relied on authority.

The Civil Code recognizes eight general personality rights: life, body, health, name, portrait, reputation, honor, and privacy; infringement remedies include cessation, apology, and damages.

Tort liability follows fault, presumption of fault, or strict liability depending on the statutory category; joint tortfeasors are jointly and severally liable to the victim.

Property rights are absolute and exclusive; ownership includes possession, use, income, and disposition, and bona fide acquisition protects a good-faith purchaser who paid reasonable consideration and completed registration or delivery.

General partners bear unlimited joint and several liability for partnership debts; limited partners are liable only up to their subscribed capital contributions.

A limited partnership requires at least one general partner and at least one limited partner; a general partner may not be a wholly state-owned company, state-owned enterprise, listed company, or public-interest institution.

Partnership affairs are decided by unanimous consent unless the partnership agreement provides otherwise; amendments to the agreement, admission of new partners, and dissolution require unanimous consent.

A partner transferring an interest to an outsider requires consent of all other partners unless the agreement allows otherwise; other partners hold a right of first refusal on equal terms.

A general partner withdrawing without cause before the term expires is liable for losses caused by the premature withdrawal; withdrawal takes effect thirty days after notice if the term is indefinite.

New partners admitted to a general partnership bear unlimited joint liability for pre-admission debts; limited partners are not liable for pre-admission debts beyond their contributions.

A partnership dissolves on expiration of the term, unanimous decision, loss of a required partner, revocation of business license, or court dissolution; liquidation precedes deregistration.

A limited liability company has at most fifty shareholders; a joint stock company requires at least two promoters, and at least half of promoters must be domiciled in China.

Shareholders of an LLC exercise preemptive rights on transfer of equity to outsiders on equal terms unless the articles provide otherwise; the transferor must notify other shareholders in writing.

The registered capital of an LLC must be paid within five years of establishment under the 2023 revision; joint stock companies must have fully paid capital before establishment.

A company may not distribute profits before covering losses and allocating statutory reserves; statutory reserve is ten percent of after-tax profit until it reaches fifty percent of registered capital.

Directors, supervisors, and senior managers owe duties of loyalty and diligence; they may not self-deal, usurp company opportunities, or compete with the company without shareholder approval.

A shareholder who abuses limited liability to evade debts and seriously harm creditors is subject to piercing of the corporate veil and personal joint liability.

A joint stock company's shares may be transferred freely, but promoters may not transfer shares within one year of establishment, and directors and senior managers face annual transfer caps of twenty-five percent of holdings.

Bankruptcy proceedings may be initiated when a debtor cannot pay debts due and its assets are insufficient or it is clearly insolvent; creditors may petition after a debt is due and unpaid.

After court acceptance, individual repayments to creditors are void, and enforcement against the debtor's property must be suspended; secured creditors may still enforce security.

The administrator may avoid transactions within one year before acceptance: gratuitous transfers, transactions at unreasonable prices, providing security for unsecured debts, early repayment, and abandonment of claims.

The administrator may avoid fraudulent transfers made within one year and preferential repayments to related parties within one year; the look-back for ordinary preferences is six months.

Claims are paid in order: bankruptcy expenses and common-benefit debts, employee wages and social insurance, taxes, then ordinary bankruptcy claims; secured claims are paid from the secured property first.

Reorganization plans must be approved by each creditor class and confirmed by the court; a plan may be crammed down if fair and feasible and dissenting classes are not unfairly discriminated against.

A settlement agreement requires approval by creditors holding more than half of unsecured claims representing at least two-thirds of the total unsecured amount.

Public issuance of securities requires registration with the securities regulator; issuers must disclose a prospectus and cannot issue before registration is effective.

Prospectuses and periodic reports must be true, accurate, and complete; issuers, directors, and underwriters bear liability for false statements unless they prove no fault.

Insider trading is prohibited; insiders may not trade, tip, or advise others using material nonpublic information until two trading days after public disclosure.

An investor acquiring five percent of a listed company's shares must report and disclose within three days and may not trade during that period; each five percent increment triggers the same duty.

A tender offer triggers when an investor's stake reaches thirty percent; the offer must be made to all shareholders on equal terms, and the offer period is at least thirty days.

Manipulation of the market includes wash sales, matched orders, continuous trading to influence price, and虚假 orders; violators face disgorgement and fines of up to ten times illegal gains.

The Securities Law imposes administrative fines for illegal disclosure up to ten million yuan, and investors may sue for civil damages caused by false statements, insider trading, or manipulation.

A contract forms when an offer is accepted; acceptance takes effect when it reaches the offeror, and an offer may be withdrawn before it reaches the offeree or revoked before acceptance.

Standard-form clauses that unreasonably exempt the drafter's liability, increase the other party's burden, or exclude main rights are void; ambiguous clauses are interpreted against the drafter.

A party may terminate for fundamental breach, anticipatory breach, force majeure defeating purpose, or delay after demand; termination notice takes effect on reaching the other party.

Damages for breach equal the loss caused, including lost profits, but may not exceed the loss foreseeable at contract formation; mitigation failure bars recovery for avoidable loss.

The penalty clause may be adjusted by the court if excessively higher or lower than actual loss; typically, exceeding thirty percent above actual loss is deemed excessive.

A guarantor is liable according to the guarantee contract; if the mode is unclear, it is presumed to be general guarantee, under which the guarantor may assert the debtor's defenses first.

Concurrent performance applies when both parties owe obligations; a party may suspend performance if the other's performance capacity clearly deteriorates and no adequate security is provided.

Real property rights transfer on registration; movable property rights transfer on delivery, and registration of movables serves only as a defense against good-faith third parties.

Mortgage of real property requires written contract and registration; the mortgage right is established on registration, and the mortgagee has priority over unsecured creditors.

Pledge of movables requires delivery of possession; a pledge of rights such as receivables or equity requires registration with the relevant authority.

A lien arises when a creditor lawfully possesses the debtor's movable property and the debtor fails to perform; the lienholder may retain the property and has priority.

The guarantee period defaults to six months if not agreed; if agreed, it runs from the due date of the principal debt, and the creditor must claim within that period.

A maximum-amount mortgage secures debts arising within an agreed period up to a cap; the secured claim is determined at the end of the period or on the date of claim fixation.

Security interests may not be created over property prohibited by law, such as public welfare facilities; a mortgage over illegally constructed buildings is void.

VAT standard rate is thirteen percent for goods, nine percent for transportation, construction, and real estate, and six percent for modern services; small-scale taxpayers use a three percent levy rate.

VAT taxpayers may deduct input tax only with valid special invoices or other lawful vouchers; input tax on simplified-tax items, exempt items, and collective welfare is not deductible.

Corporate income tax applies at twenty-five percent; small low-profit enterprises enjoy a reduced effective rate, and high-tech enterprises pay fifteen percent.

Corporate income tax taxable income equals total revenue minus deductible costs, expenses, losses, and tax-exempt income; charitable donations are deductible up to twelve percent of annual profit.

Individual income tax comprehensive income (wages, labor remuneration, author's remuneration, royalties) is taxed at three to forty-five percent after a sixty-thousand-yuan annual deduction and special deductions.

Labor remuneration income is reduced by twenty percent before inclusion, and author's remuneration is further reduced to seventy percent of the reduced amount for tax purposes.

Annual comprehensive income over 960,000 yuan is taxed at forty-five percent; the basic deduction is 60,000 yuan per year, and special additional deductions cover children's education, housing, and elderly care.

Administrative penalties include warnings, fines, confiscation, suspension of license, and administrative detention; detention may not exceed fifteen days per violation.

An administrative act may be revoked if it lacks factual basis, applies wrong law, violates procedure, exceeds authority, or is obviously improper; revocation restores the prior status.

Citizens may apply for administrative reconsideration within sixty days of knowing the act; the reconsideration organ decides within sixty days, extendable by thirty days.

Administrative litigation must be filed within six months of knowing the administrative act; the defendant is the agency that made the act, and the burden of proof lies on the defendant.

The principle of proportionality requires administrative measures to be necessary and to cause the least harm; excessive measures may be invalidated by the court.

A hearing must be held before imposing major penalties such as large fines, revocation of license, or detention; the party may request a hearing and cross-examine evidence.

Administrative compulsion includes compulsory enforcement and immediate compulsion; enforcement requires a written decision and a demand performance period before seizure or auction.

Arbitration requires a written arbitration agreement designating an arbitration commission; absent such an agreement, the court has jurisdiction over the dispute.

Arbitration awards are final and binding; a party may apply to set aside an award within six months on grounds such as no agreement, excess of authority, or procedural violation.

A court may refuse enforcement of an arbitration award only on statutory grounds; the merits are not reviewed, and the party must apply to the intermediate court.

Civil first-instance cases are heard within six months of docketing; simplified procedure applies within three months for simple cases, and small-claim procedure within two months.

Jurisdiction generally lies with the court of the defendant's domicile; contract disputes may also be heard by the court of performance, and torts by the court of the tortious act.

The burden of proof lies on the party asserting a fact; evidence obtained illegally or without cross-examination may not be admitted as a basis for judgment.

A party dissatisfied with a first-instance judgment may appeal within fifteen days, or ten days for a ruling; the second-instance court may uphold, modify, or remand the case.