Li Qiang signed a State Council decree promulgating the "Regulations on Disciplinary Actions Against Managers of State-Owned Enterprises."

Order of the State Council of the People's Republic of China

No. 781

The “Regulations on Disciplinary Measures for Managers of State-Owned Enterprises” were adopted at the 31st Executive Meeting of the State Council on April 26, 2024. They are hereby promulgated and shall take effect as of September 1, 2024.

Premier Li Qiang

May 21, 2024

Regulations on Disciplinary Actions for Managers of State-Owned Enterprises

Chapter 1 General Provisions

Article 1 　To standardize the disciplinary measures against managers of state-owned enterprises and strengthen oversight of such managers, these Regulations are formulated in accordance with the “Administrative Disciplinary Measures for Public Officials of the People’s Republic of China” (hereinafter referred to as the “Administrative Disciplinary Measures for Public Officials”) and other relevant laws.

Article 2 　For the purposes of these Regulations, “management personnel of state-owned enterprises” refers to the following public officials employed in enterprises funded by the state:

(1) Personnel performing organizational, leadership, management, and supervisory duties in wholly state-owned or wholly-owned companies and enterprises;

(2) Personnel who, through nomination, recommendation, appointment, or approval by Party organizations or state organs, wholly state-owned or fully state-funded companies, enterprises, and institutions, perform duties such as organization, leadership, management, and supervision in state-controlled or jointly-owned companies and their branches;

(3) Personnel who, with the approval or deliberation and decision of organizations within state-owned enterprises that are responsible for managing and supervising state-owned assets, represent such organizations in engaging in organizational, leadership, management, and supervisory roles at state-controlled and equity-participated companies and their branches.

The authorities and organizations responsible for the appointment and removal of management personnel in state-owned enterprises (hereinafter referred to as the appointing and removing authorities and organizations) shall impose disciplinary measures on state-owned enterprise management personnel who have committed violations, applying the provisions of Chapter II and Chapter III of the Law on Administrative Disciplinary Measures for Public Officials, as well as the provisions of these Regulations.

Article 3 　Disciplinary actions against management personnel of state-owned enterprises shall uphold the leadership of the Communist Party of China, adhere to the principle of Party management of cadres, strengthen the building of the management team in state-owned enterprises, and promote high-quality development of state-owned enterprises.

Article 4 　The authorities and institutions responsible for appointment and removal shall strengthen education, management, and supervision of managerial personnel in state-owned enterprises. When imposing disciplinary measures on managerial personnel in state-owned enterprises, it is essential to uphold fairness and impartiality, and to make decisions through collective deliberation. We must also adhere to a balanced approach that combines strictness with leniency, integrating punishment with education. Furthermore, we must strictly abide by the rule of law, basing decisions on factual evidence and using the law as the guiding principle, thereby safeguarding the legitimate rights and interests of managerial personnel and other relevant individuals in state-owned enterprises in accordance with the law.

Article 5 　The institutions responsible for fulfilling the duties of investors or the departments with authority over cadre management shall, in accordance with laws, regulations, and relevant national provisions, guide state-owned enterprises to integrate and optimize their supervisory resources, promote the alignment of investor supervision with disciplinary inspection and supervision, inspection supervision, audit supervision, financial and accounting supervision, and social supervision, and establish a sound, coordinated, and efficient supervisory mechanism. They shall also set up an internal supervision and management system characterized by mutual cooperation and mutual checks and balances, thereby enhancing the systematic, targeted, and effective nature of oversight over state-owned enterprises and their managers.

Article 6 　Disciplinary actions against management personnel of state-owned enterprises shall be based on clear facts, solid evidence, accurate characterization of the offense, appropriate handling, lawful procedures, and complete formalities, and shall be commensurate with the nature, circumstances, and degree of harm caused by the illegal act.

Chapter 2: Types of Disciplinary Actions and Their Application

Article 7 　The types of disciplinary actions are:

(1) Warning;

(2) Reprimand;

(3) Major demerit;

(4) Demotion;

(5) Dismissal from office;

(6) Dismissal.

Article 8 　The duration of the disciplinary action is:

(1) Warning, 6 months;

(2) Reprimand, 12 months;

(3) Major demerit, 18 months;

(4) Demotion or removal from office, for 24 months.

The disciplinary decision takes effect from the date it is made, and the duration of the disciplinary action begins to be calculated from the date the disciplinary decision takes effect.

Article 9 　If a manager of a state-owned enterprise commits two or more violations that each warrant disciplinary action, separate disciplinary measures shall be imposed for each violation. If the types of disciplinary actions to be imposed are different, the most severe disciplinary measure among them shall be executed. If several disciplinary actions of the same type, all requiring removal from office or less, are to be imposed, the duration of the disciplinary action may be set at a period longer than the longest individual disciplinary period but shorter than the total sum of all such periods; however, the maximum duration shall not exceed 48 months.

Article 10 　If a state-owned enterprise commits an illegal act or if a decision made collectively by its management personnel is unlawful and legal liability should be pursued, disciplinary actions shall be taken against the responsible leading personnel and the directly responsible personnel among the enterprise’s management personnel.

If two or more management personnel of a state-owned enterprise jointly commit an illegal act and disciplinary action is required, each shall be given corresponding disciplinary measures according to the respective responsibilities they should bear.

Article 11 　If state-owned enterprise management personnel fall under any of the following circumstances, they may be given lighter or reduced disciplinary measures:

(1) Actively confessing to unlawful acts for which one should be disciplined;

(2) Cooperate with the investigation and truthfully explain the facts of my own illegal conduct;

(3) Reporting the illegal activities of others, which are verified as true upon investigation;

(4) Actively take measures to effectively prevent, mitigate losses, or eliminate adverse effects;

(5) Playing a secondary or auxiliary role in a joint unlawful act;

(6) Proactively turn over or reimburse any illegally obtained gains;

(7) Mistakes and errors arising from lack of experience and pioneering trials in the course of advancing state-owned enterprise reform;

(8) Other mitigating or lenient circumstances prescribed by laws and regulations.

Imposing a lighter disciplinary action means imposing a less severe penalty within the range of penalties prescribed for the violation under these regulations.

Mitigation of punishment refers to imposing a penalty one level lower than the range of penalties prescribed for the violation under these regulations.

Article 12 　If the illegal acts committed by management personnel of state-owned enterprises are minor and fall under any of the circumstances specified in Paragraph 1 of Article 11 of these Regulations, they may be subject to a reminder talk, criticism and education, an order to conduct self-inspection, or a cautionary admonition, and shall be exempted from or not subjected to disciplinary action.

If management personnel of state-owned enterprises are coerced or misled into participating in illegal activities due to lack of full awareness, and after receiving criticism and education they genuinely show remorse, they may be given lighter punishment, exempted from punishment, or not disciplined at all.

Article 13 　If state-owned enterprise managers fall under any of the following circumstances, they shall be given stricter disciplinary measures:

(1) If one intentionally violates the law again during the disciplinary period, they shall be subject to disciplinary action.

(2) Preventing others from reporting or providing evidence;

(3) Colluding to give false testimony or fabricating, concealing, or destroying evidence;

(4) Covering up co-defendants;

(5) Coercing or instigating others to commit illegal acts;

(6) Refusing to turn over or compensate for illegally obtained gains;

(7) Other aggravating circumstances prescribed by laws and regulations.

Imposing a heavier penalty refers to imposing a more severe punishment within the range of penalties prescribed for the violation under these regulations.

Article 14 　During the disciplinary period, management personnel of state-owned enterprises shall not be promoted to higher positions, job levels, or professional titles. Among them, those who have received a record of demerit, a serious record of demerit, been demoted, or removed from their posts shall not be promoted to higher salary and benefit levels. Those who have been removed from their posts shall have their job or position level lowered, and their salary and benefits shall be reduced accordingly. For those who have been dismissed, the employer shall terminate the labor contract in accordance with the law.

Article 15 　Property illegally obtained by management personnel of state-owned enterprises, as well as the property personally used in illegal activities, shall be returned to their original owners or holders, except where such property is required by law to be confiscated, recovered, or ordered to be refunded by the relevant authorities.

With regard to any benefits—including positions, ranks, levels, posts, staff grades, professional titles, remuneration, qualifications, educational background, degrees, honors, awards, and other privileges—that have been obtained by management personnel of state-owned enterprises through illegal acts, the authorities and organizations responsible for appointment and removal shall either rectify such situations themselves or recommend that the relevant authorities, organizations, and institutions take corrective measures in accordance with applicable regulations.

Article 16 　If retired management personnel of state-owned enterprises have engaged in illegal activities before or after retirement and should be subject to disciplinary action, no further disciplinary decision shall be made. However, a case may still be initiated for investigation. Where the law requires demotion, removal from office, or dismissal as disciplinary measures, the benefits and entitlements enjoyed by the individual shall be adjusted accordingly in accordance with applicable regulations. Any property illegally obtained by the individual, as well as any personal property used in connection with the illegal activity, shall be handled in accordance with Article 15 of these Regulations.

Chapter 3: Illegal Acts and the Disciplinary Measures Applicable to Them

Article 17 　If management personnel of state-owned enterprises engage in any of the following behaviors, they shall be given a record of demerit or a serious record of demerit in accordance with Article 28 of the Law on Administrative Disciplinary Measures for Public Officials; for cases involving more serious circumstances, they shall be demoted or removed from office; and for cases involving extremely serious circumstances, they shall be dismissed:

(1) Disseminating remarks that undermine the upholding and improvement of the basic socialist economic system;

(2) Refusing to implement or circumventing the implementation of decisions and arrangements related to the reform, development, and Party building of state-owned enterprises;

(3) Harm national security and national interests in activities such as foreign economic cooperation, foreign aid, and international exchanges.

公开发表反对宪法确立的国家指导思想，反对中国共产党领导，反对社会主义制度，反对改革开放的文章、演说、宣言、声明等的，予以开除。

Article 18 　If management personnel of state-owned enterprises engage in any of the following behaviors, they shall be given a warning, a record of demerit, or a serious record of demerit in accordance with Article 30 of the Law on Administrative Disciplinary Measures for Public Officials; in cases of serious circumstances, they shall be subject to demotion or removal from office:

(1) Making major decisions, important personnel appointments and removals, significant project arrangements, and large-scale financial transactions in state-owned enterprises in violation of prescribed decision-making procedures, duties, and authorities;

(2) Intentionally evading, interfering with, or sabotaging collective decision-making, and instead having individual persons or a small group of individuals make major decisions concerning state-owned enterprises, important personnel appointments and removals, major project arrangements, and large-scale financial transactions.

(3) Refusing to implement or arbitrarily altering major decisions lawfully made collectively by the Party Committee (Group) meetings, shareholders’ (general) meetings, the board of directors, and the workers’ congresses of state-owned enterprises;

(4) Institutions, industry regulatory authorities, and other relevant departments that refuse to implement, circumvent implementation of, or delay implementation of decisions lawfully made by them regarding the performance of their duties as investors.

Article 19 　If managers of state-owned enterprises engage in any of the following behaviors, they shall be given a warning, a record of demerit, or a serious record of demerit in accordance with Article 33 of the Law on Administrative Disciplinary Measures for Public Officials; for cases involving more serious circumstances, they shall be demoted or removed from office; and for cases involving extremely serious circumstances, they shall be dismissed:

(1) Taking advantage of one’s official position to embezzle, steal, defraud, or otherwise illegally appropriate or misappropriate the assets of this enterprise and its affiliated companies, as well as customer assets;

(2) Taking advantage of one’s official position to solicit property from others or illegally accept property from others in order to procure benefits for them;

(3) Offering bribes to state organs, state-owned enterprises, public institutions, people's organizations, or to state functionaries, employees of enterprises or other entities, foreign public officials, or officials of international public organizations, with the intent of obtaining improper benefits;

(4) Using one’s official position or influence derived from one’s position to violate regulations and seek personal gain—either for oneself or others—in major matters involving the rights and interests of state-owned asset investors, as well as in activities such as engineering construction, asset disposal, publishing and distribution, and bidding and tendering.

(5) Tolerating or tacitly approving of specific individuals with personal connections who leverage one’s official authority or influence in one’s position to seek private gain in major matters involving the state-owned asset investor’s rights and interests in enterprises, as well as in enterprise operations and management activities.

(6) Violating regulations by collectively dividing state-owned assets among individuals under the guise of a unit.

Those who refuse to correct the violation of regulations regarding the employment, concurrent posts, or business activities of specific related persons, and who fail to comply with job adjustments, shall be removed from office.

Article 20 　If management personnel of state-owned enterprises engage in any of the following behaviors, and the circumstances are relatively serious, they shall receive a warning, a record of demerit, or a major record of demerit, in accordance with Article 35 of the Law on Administrative Disciplinary Measures for Public Officials; if the circumstances are severe, they shall be demoted or removed from office:

(1) Exceeding the total wage budget or overpaying wages, or setting up and disbursing wage-related income in forms other than the total wage budget, such as allowances, subsidies, or bonuses;

(2) Failure to implement total wage budget management, or failure to fulfill the prescribed procedures for filing or approving the total wage amount;

(3) Violating regulations by arbitrarily setting salaries, bonuses, allowances, subsidies, and other monetary benefits;

(4) Exceeding the prescribed standards and scope in areas such as training activities, office space, official vehicles, business entertainment, and travel expenses;

(5) Official travel funded by public funds, or disguised official travel under the guise of study and training, inspection and research, employee recuperation, or similar activities.

Article 21 　If managers of state-owned enterprises engage in any of the following behaviors, they shall be given a warning, a record of demerit, or a serious record of demerit in accordance with Article 36 of the Law on Administrative Disciplinary Measures for Public Officials; for cases involving more serious circumstances, they shall be demoted or removed from office; and for cases involving extremely serious circumstances, they shall be dismissed:

(1) Violating regulations by engaging in private business or running enterprises, holding shares or securities in non-listed companies (enterprises), participating in paid intermediary activities, registering companies or making equity investments abroad, or engaging in other profit-making activities;

(2) Taking advantage of one’s official position to assist others in operating businesses that are in the same line of business as the enterprise where one is employed;

(3) Violating regulations by taking on concurrent positions in enterprises invested in by this company or in other enterprises, institutions, social organizations, intermediary agencies, international organizations, and the like without prior approval;

(4) Having been approved for a part-time job but violating regulations by receiving remuneration or obtaining other income;

(5) Using inside information or other non-public information, trade secrets, intangible assets, and the like to seek personal gain.

Article 22 　If management personnel of state-owned enterprises, in the course of performing their duties to provide public social services, infringe upon the legitimate rights and interests of service recipients or the public interest, and this is verified by the regulatory authorities along with a recommendation for disciplinary action, in accordance with Article 38 of the Law on Administrative Disciplinary Measures for Public Officials, those with relatively serious circumstances shall receive a warning, a record of demerit, or a major record of demerit; those with severe circumstances shall be demoted or removed from office; and those with particularly serious circumstances shall be dismissed.

Article 23 　If management personnel of state-owned enterprises engage in any of the following acts, causing losses to state-owned assets or other serious adverse consequences, they shall be given a warning, a record of demerit, or a major record of demerit in accordance with Article 39 of the Law on Administrative Disciplinary Measures for Public Officials; for cases involving more serious circumstances, they shall be demoted or removed from office; and for cases involving extremely serious circumstances, they shall be dismissed:

(1) Intercepting, occupying, misappropriating, or delaying the remittance of budgetary revenues that should be turned over to the state treasury;

(2) Violating regulations by failing to perform or improperly performing business and investment duties;

(3) Violating regulations by engaging in related-party transactions, conducting financing-based trade, fictitious transactions, false joint ventures, or shell-company operations;

(4) Failing to register the property rights of state-owned assets within the time limit prescribed by the state, or failing to register them accurately; or forging, altering, leasing, lending, or selling certificates (forms) for the registration of state-owned asset property rights.

(5) Refusing to provide relevant information and materials or fabricating false data and information, thereby distorting the performance evaluation results of state-owned enterprises;

(6) Concealing the true financial condition of the enterprise, failing to provide accurate information and materials to intermediary service agencies such as accounting firms, law firms, and asset valuation agencies, or colluding with such agencies to commit fraud.

Article 24 　If managers of state-owned enterprises engage in any of the following behaviors, they shall be given a warning, a record of demerit, or a serious record of demerit in accordance with Article 39 of the Law on Administrative Disciplinary Measures for Public Officials; for more serious cases, they shall be demoted or removed from office; and for extremely serious cases, they shall be dismissed:

(1) Money laundering or involvement in money laundering;

(2) Accepting customer funds without recording them in the accounts, illegally absorbing public deposits or engaging in disguised absorption of public deposits, and violating regulations by participating in or indirectly participating in private lending.

(3) Issuing loans in violation of regulations or writing off bad debts and disposing of non-performing assets by reducing, suspending, lowering, deferring, exempting, or extending loan principal;

(4) Issuing financial instruments or providing guarantees in violation of regulations; accepting, paying, or guaranteeing illegal instruments.

(5) Violating the fiduciary duty by improperly using clients’ funds or other assets entrusted or held in trust;

(6) Forging or altering currency, precious metals, financial instruments, or marketable securities issued by the state;

(7) Forging, altering, transferring, leasing, or lending the business license or approval documents of a financial institution; or establishing a financial institution or issuing stocks or bonds without obtaining the requisite approval.

(8) Fabricating and disseminating false information that affects securities and futures trading, manipulating the securities and futures markets, providing false information or forging, altering, or destroying transaction records to deceive investors into buying or selling securities and futures contracts;

(9) Engaging in fraudulent claims or participating in insurance fraud activities;

(10) Stealing, purchasing, or illegally providing others’ credit card information and other personal information of citizens.

Article 25 　If management personnel of state-owned enterprises engage in any of the following behaviors that cause adverse consequences or impacts, they shall be given a warning, a record of demerit, or a serious record of demerit in accordance with Article 39 of the Regulations on Administrative Disciplinary Measures for Public Officials; for cases involving more serious circumstances, they shall be demoted or removed from office; and for cases involving extremely serious circumstances, they shall be dismissed:

(1) Disclosing the company’s inside information or trade secrets;

(2) Forging, altering, transferring, leasing, or lending administrative permits or qualification certificates; or leasing or lending the name of a state-owned enterprise or the business name elements contained therein.

(3) Violating regulations by borrowing or indirectly borrowing local government debt;

(4) Violating regulations outside the territory of the People’s Republic of China and thereby causing serious quality problems in projects, triggering major labor disputes, or resulting in other severe consequences;

(5) Failing to perform or failing to perform in accordance with the law the duties of safety production management, thereby causing a production safety accident;

(6) Engaging in formalism and bureaucratic practices in work, such as going through the motions, shirking responsibility, or adopting a one-sided interpretation and mechanically implementing the Party and the state’s guidelines, policies, and major decisions and deployments.

(7) Refusing, obstructing, or delaying the lawful supervision, audit supervision, and financial and accounting supervision conducted by investors; or refusing to rectify issues identified through investor supervision, audit supervision, and financial and accounting supervision, passing the buck, offering perfunctory responses, or engaging in superficial rectifications.

(8) Failing to provide relevant information, submit relevant reports, or fulfill information disclosure obligations in accordance with the law, or failing to cooperate with other entities in engaging in illegal or non-compliant activities;

(9) Failing to perform statutory duties or exercising powers illegally, thereby infringing upon the legitimate rights and interests of workers;

(10) Violating regulations by refusing or delaying payment of funds owed to small and medium-sized enterprises, wages of migrant workers, etc.;

(11) Instructing, directing, compelling, condoning, or shielding subordinates from violating laws and regulations.

Chapter Four: Procedures for Disciplinary Actions

Article 26 　The authorities and units responsible for appointment and removal shall, in accordance with their authority over cadre management, impose disciplinary sanctions on management personnel of state-owned enterprises who have committed violations as stipulated in the Law on Administrative Disciplinary Sanctions for Public Officials and these Regulations, thereby safeguarding the legitimate rights and interests of management personnel of state-owned enterprises and relevant personnel.

The authorities and units responsible for appointment and removal shall, in light of the actual conditions of state-owned enterprises—including their organizational forms and structures—clearly define the internal departments or agencies (hereinafter referred to as the handling departments) that are tasked with administering disciplinary actions against management personnel of state-owned enterprises, as well as their respective duties, powers, and operational mechanisms.

Article 27 　Investigations and disciplinary actions against management personnel of state-owned enterprises suspected of violating the law shall be conducted by two or more staff members in accordance with the following procedures:

(1) With the approval of the head of the appointing or dismissing authority or unit, the handling department shall conduct a preliminary verification of the clues requiring investigation and handling.

(2) After preliminary verification, if the handling department finds that management personnel of the state-owned enterprise are suspected of violating the Regulations on Administrative Disciplinary Measures for Public Officials and these Provisions, and further investigation is required, the case shall be formally initiated upon approval by the principal person in charge of the appointing or removing authority or unit. The investigating state-owned enterprise management personnel (hereinafter referred to as the “investigated person”) and their respective units shall be notified in writing, and the competent supervisory authority with jurisdictional oversight shall also be informed.

(3) The department in charge shall conduct a further investigation into the illegal acts of the person under investigation, collect and verify relevant evidence materials, obtain information from relevant units and individuals, and prepare a written investigation report. The report shall be submitted to the appointing and removing authority and the head of the unit. Relevant units and individuals shall provide truthful information.

(4) The department in charge shall inform the person under investigation of the facts ascertained through the investigation and the basis for the proposed disciplinary action, listen to their statements and defenses, verify any facts, reasons, and evidence they present, and keep a record of such verification. If the facts, reasons, and evidence presented by the person under investigation are substantiated, they shall be accepted.

(5) After review, the handling department shall submit a recommendation for action and, in accordance with established procedures, bring it before the collective discussion of the leading members of the appointing and removing authority or the relevant unit to make a decision on whether to impose disciplinary measures on the person under investigation, exempt them from disciplinary action, refrain from taking any disciplinary action, or close the case; such decision shall also be reported to the supervisory authority with jurisdiction.

(6) The authority or organization responsible for appointment and removal shall, within one month from the date on which the decision specified in paragraph 5 of the first clause of this article is made, notify the person under investigation and his/her employing unit in writing of the decision regarding disciplinary action, exemption from discipline, refusal to impose discipline, or case dismissal, and shall also announce such decision within a certain scope. Where the decision involves state secrets, commercial secrets, or personal privacy, it shall be handled in accordance with relevant state regulations.

(7) The department responsible for handling the case shall file the decision on disciplinary action and related execution materials into the individual’s personal record, and at the same time compile all relevant materials to form a working file for this disciplinary case.

It is strictly prohibited to collect evidence through illegal means such as threats, enticement, or deception. Evidence collected by illegal means may not be used as the basis for imposing disciplinary measures. Disciplinary measures shall not be aggravated solely because the person under investigation has offered a defense.

Article 28 　During the investigation of major illegal cases, if necessary, the relevant supervisory authority with management jurisdiction may be requested to provide the necessary support.

If the illegal situation is complex, involves a wide range of issues, or has caused significant impact, and it proves difficult for the appointing or dismissing authority or unit to investigate and verify the matter, with the approval of the head of the appointing or dismissing authority or unit, they may request the supervisory authority with jurisdiction to handle the case.

Article 29 　Disciplinary actions against management personnel of state-owned enterprises shall be decided within six months from the date of case initiation. In cases involving complex circumstances or other special situations, with approval by the principal person in charge of the appointing or removing authority or unit, the deadline may be appropriately extended, but the extension period shall not exceed six months.

Article 30 　A decision on disciplinary action shall be documented in a written notice of disciplinary action.

The disciplinary decision document shall specify the following matters:

(1) The names, workplaces, and positions of management personnel in state-owned enterprises who have been disciplined (hereinafter referred to as the “disciplined persons”);

(2) Facts and evidence of the violation;

(3) Types and basis of disciplinary actions;

(4) The procedures and time limits for applying for a review or filing an appeal against the disciplinary decision;

(5) Name and date of the authority or unit that made the disciplinary decision.

The disciplinary decision document shall bear the official seal of the authority or unit that issued the decision.

Article 31 　Personnel involved in the investigation and handling of illegal cases involving management personnel of state-owned enterprises shall recuse themselves if any of the following circumstances apply; the person under investigation, the whistleblower, and other relevant personnel may also request their recusal:

(1) Is a close relative of the person under investigation or the whistleblower;

(2) Has served as a witness in this case;

(3) The individual himself or a close relative has a vested interest in the case under investigation;

(4) Other circumstances that may affect the fair investigation and handling of the case.

The recusal of the principal person in charge of the appointing or dismissing authority or unit shall be decided by the head of the next higher authority or unit; the recusal of other personnel involved in the investigation and handling of illegal cases shall be decided by the head of the appointing or dismissing authority or unit.

If the appointing or removing authority or unit discovers that a person involved in the disciplinary action has circumstances requiring recusal, it may directly decide that the person recuse themselves.

Article 32 　If management personnel of state-owned enterprises are held criminally liable in accordance with the law, the appointing and removing authorities and units shall, based on the final judgments, rulings, and decisions of the judicial authorities as well as the facts and circumstances established therein, impose disciplinary measures in accordance with the law.

If management personnel of state-owned enterprises are subject to administrative penalties in accordance with the law and should be disciplined, the appointing or removing authority or unit may, based on the facts and circumstances established in the effective administrative penalty decision and after verification, impose disciplinary measures in accordance with the law.

After the appointing and removing authorities and units have made disciplinary decisions in accordance with Paragraphs 1 and 2 of this Article, if judicial or administrative authorities legally alter the original effective judgments, rulings, or decisions, thereby affecting the original disciplinary decisions, the appointing and removing authorities and units shall, based on the altered judgments, rulings, or decisions, reissue the corresponding handling measures.

Article 33 　If the organ or unit responsible for appointment and removal imposes disciplinary measures on management personnel of state-owned enterprises who serve as deputies to people's congresses at various levels or members of committees of the Chinese People's Political Consultative Conference at various levels, it shall notify the standing committee of the relevant people's congress, the presidium of the people's congress of townships, ethnic townships, or towns, or the standing committee of the committee of the Chinese People's Political Consultative Conference.

Article 34 　If state-owned enterprise managers are suspected of violating the law and have been placed under investigation, and it is deemed inappropriate for them to continue performing their duties, the appointing or removing authority or unit may decide to suspend their official duties. During the period when a state-owned enterprise manager is under investigation, they may not leave the country or resign from public office without the prior consent of the appointing or removing authority or unit that initiated the investigation. Furthermore, their appointing or removing authority or unit, as well as their superior authorities or units, may not arrange for their transfer, promotion, award, or retirement procedures.

Article 35 　The investigation revealed that when management personnel of state-owned enterprises suffer from false reports, malicious accusations, or defamation and insults while performing their duties in accordance with the law, thereby causing adverse effects, the appointing and removing authorities and units shall promptly clarify the facts, restore their reputations, and eliminate the negative impacts as required.

Article 36 　If management personnel of state-owned enterprises are subject to disciplinary actions such as demotion, removal from office, or dismissal, the relevant human resources department and other competent authorities shall, within one month after the disciplinary decision is made, handle the procedures for adjusting their posts, positions, salaries, and other related benefits in accordance with their management authority, and shall also amend or terminate their labor contracts in compliance with the law. In special circumstances, with the approval of the principal person in charge of the appointing or dismissing authority or unit, the processing period may be appropriately extended, but the extension shall not exceed six months at most.

Article 37 　If management personnel of state-owned enterprises receive disciplinary actions other than dismissal, and during the period of such discipline they demonstrate repentance and no longer engage in any illegal conduct that would warrant further disciplinary action, the disciplinary measures will be automatically lifted upon expiration of the disciplinary period.

After the disciplinary action is lifted, evaluations and promotions in terms of position, rank, level, post, staff grade, professional title, and salary grade will no longer be affected by the original disciplinary action. However, for those who have been subjected to demotion or removal from office, their previous position, rank, level, post, staff grade, professional title, and salary grade will not be restored.

The organs and units responsible for appointment and removal shall, in accordance with relevant state regulations, properly handle and reasonably utilize management personnel of state-owned enterprises who have been disciplined. They should uphold the principle of equally emphasizing respect, motivation, supervision, and constraint, thereby fostering a positive environment conducive to getting things done and achieving success.

Chapter 5: Review and Appeal

Article 38 　If the person subject to disciplinary action disagrees with the disciplinary decision, they may, within one month from the date of receipt of the disciplinary decision notice, submit a request for review to the agency or unit that made the disciplinary decision (hereinafter referred to as the “original disciplinary decision-making body”). The original disciplinary decision-making body shall render a review decision within one month from the date of receiving the review request.

If the person subject to disciplinary action is unable to meet the deadline for filing a review application due to force majeure or other justifiable reasons, they may apply for an extension within 10 working days after the obstacle is removed. Whether such an extension is granted shall be determined by the original unit that made the disciplinary decision.

Article 39 　If the party subject to disciplinary action still disagrees with the review decision, they may file an appeal to the next higher authority or unit within one month from the date of receiving the review decision, in accordance with their management jurisdiction. The authority or unit that receives the appeal (hereinafter referred to as the "appeal authority") shall render a decision on the appeal within two months from the date of receipt; in cases involving complex circumstances, the period may be appropriately extended, but the extension shall not exceed one month at most.

If the party subject to disciplinary action is unable to file an appeal within the prescribed time limit due to force majeure or other justifiable reasons, they may apply for an extension of the deadline within 10 working days after the obstacle is removed. The decision on whether to grant such an extension shall be made by the appeal authority.

Article 40 　After the agency that originally issued the disciplinary decision receives a request for review and the appeal authority accepts the appeal, the relevant handling department shall establish a working group, review the original case files, and, if necessary, conduct investigations to collect and verify relevant evidence and obtain information from the relevant units and individuals. The working group shall collectively deliberate and submit its recommendations for handling the case. These recommendations shall then be submitted according to established procedures for collective deliberation and decision-making by the leadership members of the agency that originally issued the disciplinary decision and the appeal authority, and the decision shall be reported to the supervisory authority with jurisdiction. The review and appeal decisions shall, within one month from the date of their issuance, be notified in writing to the disciplined individual and his or her unit, and shall also be publicly announced within a certain scope. In cases involving state secrets, commercial secrets, or personal privacy, the procedures prescribed by national regulations shall be followed.

During the review and appeal periods, the execution of the original disciplinary decision shall not be suspended.

Management personnel of state-owned enterprises shall not be subject to harsher disciplinary measures for filing reviews or appeals.

Ensure that the review and appeal processes are kept separate from the original investigation; personnel involved in the original investigation and handling shall not participate in the review or appeal.

Article 41 　If the authority or unit responsible for appointment and removal discovers that a disciplinary decision made by its own authority or unit, or by a lower-level authority or unit, is indeed erroneous, it shall promptly correct such decision or order the lower-level authority or unit to make the correction promptly.

If the supervisory authority finds that the appointing and removing authority or unit has failed to impose a disciplinary action when such action should have been taken, or if the disciplinary action imposed is unlawful or inappropriate, and it submits a supervisory recommendation in accordance with the law, the appointing and removing authority or unit shall adopt the recommendation and notify the supervisory authority in writing of the implementation status. If the recommendation is not adopted, the authority or unit shall provide a detailed explanation of the reasons for its decision.

Article 42 　If any of the following circumstances exist, the unit that originally issued the disciplinary decision or the appeal authority shall revoke the original disciplinary decision and either reissue a decision or instruct the unit that originally issued the disciplinary decision to reissue a decision:

(1) The factual basis for the disciplinary action is unclear or the evidence is insufficient;

(2) Violating the procedures stipulated in these Regulations and thereby affecting the fair handling of the case;

(3) Making disciplinary decisions beyond one’s authority or abusing one’s authority.

Article 43 　If any of the following circumstances exist, the unit that originally made the disciplinary decision or the appeal authority shall modify the original disciplinary decision, or the appeal authority shall order the unit that originally made the disciplinary decision to make the modification:

(1) The applicable laws and regulations are indeed erroneous;

(2) There is indeed an error in the determination of the circumstances of the illegal act;

(3) Improper disciplinary action.

Article 44 　If the unit that originally made the disciplinary decision and the appeal authority deem that the disciplinary decision correctly established the facts and properly applied the law, they shall uphold the decision.

Article 45 　If a disciplinary decision against a manager of a state-owned enterprise is amended and it becomes necessary to adjust the manager’s position, job grade, salary and benefits level, such adjustments shall be made in accordance with applicable regulations. If a disciplinary decision against a manager of a state-owned enterprise is revoked and it becomes necessary to restore the manager’s position, job grade, salary and benefits level, the manager shall be assigned to an appropriate position and job grade corresponding to the original position and job grade, and his or her reputation shall be restored within the scope of the original disciplinary decision’s public announcement.

If management personnel of state-owned enterprises have their disciplinary actions revoked or mitigated due to circumstances specified in Articles 42 and 43 of these Regulations, they shall receive appropriate compensation for any loss suffered in their salary and benefits, taking into account their actual job performance and contributions.

Decisions to uphold, modify, or revoke disciplinary actions shall, within one month after their issuance, be served and announced in accordance with Item 6 of Paragraph 1 of Article 27 of these Regulations, and shall be filed in the individual’s personal record.

Chapter Six: Legal Liability

Article 46 　If the appointing and removing authorities, their units, and their staff members engage in any of the circumstances specified in Articles 61 and 63 of the Law on Administrative Disciplinary Measures for Public Officials when imposing disciplinary actions on management personnel of state-owned enterprises, the responsible leading officials and directly responsible personnel shall be dealt with in accordance with the provisions of the Law on Administrative Disciplinary Measures for Public Officials.

Article 47 　If any relevant authority, unit, organization, or individual refuses to implement the disciplinary decision or falls under any of the circumstances specified in Article 62 of the Law on Administrative Disciplinary Actions for Public Officials, their superior authority, competent department, institution performing investor duties, or appointing and removing authority or unit shall impose sanctions in accordance with the provisions of the Law on Administrative Disciplinary Actions for Public Officials.

Article 48 　If any relevant entity or individual distorts or fabricates facts through means such as reporting and falsely accuses or frames management personnel of state-owned enterprises, they shall bear legal responsibility in accordance with the law.

Article 49 　Any violation of the provisions of this regulation that constitutes a crime shall be subject to criminal liability in accordance with the law.

Chapter VII Supplementary Provisions

Article 50 　Where the State has separate provisions for holding accountable managers of state-owned enterprises in the financial and cultural sectors who have violated the law, such provisions shall apply concurrently.

Article 51 　For cases that were already concluded before the implementation of these Regulations, if a review or appeal is required, the provisions in effect at the time shall apply. For cases that have not yet been concluded, if the act was committed under provisions that did not consider it unlawful, the provisions in effect at the time shall apply; if the act was committed under provisions that did consider it unlawful, it shall be handled according to those provisions at the time. However, if these Regulations do not consider the act unlawful or provide for a lighter penalty under these Regulations, these Regulations shall apply instead.

Article 52 　This regulation shall take effect as of September 1, 2024.