Fraud Under Chinese Criminal Law: A Broader Net Than Many Expect
Fraud (zha pian) is one of the most commonly charged offences against foreign nationals in China. The Criminal Law, Articles 266, 192, 224 [CN official] defines multiple species of fraud — from basic fraud to contract fraud, fundraising fraud, and loan fraud — each with distinct elements and sentencing ranges.
Basic Fraud: Article 266
Article 266 criminalises defrauding public or private property where the amount is "relatively large." The SPC & SPP Judicial Interpretation on Fraud (2011) establishes the monetary thresholds: "relatively large" starts at 3,000–10,000 RMB (region-dependent); "large" at 30,000–100,000 RMB; and "especially large" at 500,000 RMB+. Sentences range from 3 years to life imprisonment depending on the amount and circumstances.
Contract Fraud: Article 224
Contract fraud (he tong zha pian) applies where a person, during the conclusion or performance of a contract, defrauds property through specified deceptive means — using false identities, forged documents, or receiving advance payment and absconding. This provision is particularly relevant to foreign businesspeople engaged in commercial transactions in China. The line between a failed business deal and criminal contract fraud is fine — see when business disputes become criminal fraud.
Key Message for Foreign Nationals
Fraud charges in China often arise from commercial contexts that would be treated as civil disputes in other jurisdictions. Early engagement of counsel — before making statements to police — is critical. The amount involved is the primary driver of sentencing severity, but restitution to victims, confession, and cooperation can substantially reduce the sentence under the SPC & SPP Guiding Opinions on Plea Leniency (2019).
Primary legislation: Criminal Law, Articles 266, 192–200, 224 [CN official]
Judicial interpretation: SPC & SPP Judicial Interpretation on Fraud (2011)
Related: Foreigners Accused of Fraud → | Cross-Border Fraud → | Business Dispute or Crime →