Amidst China's continued economic downturn and strained local finances, an increasing number of businesses and individuals are facing so-called "fine-based enforcement." Transportation, urban management, and market supervision departments are increasingly stepping up enforcement efforts, increasing the frequency of inspections and the amount of fines, sparking strong public discontent. Several interviewees told us that some highways have even quietly increased fares, doubling tolls. Many people agree that "whenever the government is short of money, it will find a way to issue fines."
Cui Guanwu, a resident of Shenzhen, Guangdong, told Radio Free Asia on Tuesday (June 24) that local fiscal constraints have become widespread, and law enforcement agencies have been mobilized to "generate revenue." "Local governments are running out of money now, and with less income from land purchases, their finances can't keep up. Traffic police, urban management officials, and sanitation officials are all forced to issue fines. These constant fines are really unbearable for ordinary people. A few days ago, I saw a young man riding an electric scooter without a helmet and was fined 2,000 yuan. Traffic police now stipulate that any electric scooter carrying passengers or cargo will be fined 2,000 yuan! 2,000 yuan is half a month's living expenses for the average family. The fines are getting heavier and heavier."
Urban management enforcement has also sparked controversy. Su Qiang, a resident of Suzhou, Jiangsu, told this station that although the State Council removed small vendors and street vendors from the "Civilized City" assessment last year in an attempt to reduce urban management interference, actual enforcement has not kept pace. "Now, fining street vendors 20 yuan each time doesn't seem that harsh, but you can continue to set up stalls, just like paying 'protection money.' In other cities, the fees are even more exaggerated, 800 or 1,200 yuan. How much money can you make from selling things?"
He added: "This isn't management, it's suppression. You see there's no money to collect taxes, so you target these ordinary people."
Similar cases are not uncommon. According to a December 24th report on the Legal Daily website, a farmer in Yancheng, Jiangsu Province, was fined 100,000 yuan by the Dafeng District Market Supervision Bureau for selling sheep for a profit of 180 yuan. After the case sparked public outcry, the bureau ultimately reduced the fine to 10,000 yuan.
In addition to self-employed businesses and street vendors, many small and medium-sized enterprises have also become targets of frequent enforcement. One private company in Shandong province faced over a hundred administrative inspections between 2021 and 2023, nearly paralyzing its operations.
Data from China's Ministry of Finance reveals the background to this trend: in 2024, China's national non-tax revenue reached 4.47 trillion yuan, a 25.4% increase over the previous year. Non-tax revenue, including various administrative fees and fines, has become a key source of local fiscal revenue.
In response to business backlash and public pressure, the General Office of the State Council of China issued the "Opinions on Strictly Regulating Administrative Inspections Involving Enterprises" in January of this year, clarifying that business inspections must be conducted no more frequently than once every three months and requiring standardized procedures. Subsequently, the Ministry of Justice launched a nationwide special campaign focused on addressing four issues: arbitrary fees, fines, inspections, and closures.
However, the interviewees generally reflected that the reality of law enforcement is still "there are policies from the top and countermeasures from the bottom". Not only are companies frequently punished, but ordinary residents are also hard to escape.
Tolls, fines for cross-regional enforcement, and compulsory firefighting equipment are all possible.
Mr. Zheng, a Shanghai resident traveling in Guizhou, told reporters that tolls have increased from 50 cents per kilometer to one yuan. Scenic spot ticket discounts, which used to be for people over 60, have now been increased to 65. "Everything is going up in price now. The Guizhou highway toll is now one yuan per kilometer, which has doubled. Scenic spot tickets used to be half price at 60, but now they have to be 65."
Changsha netizen Zhang Xiaonong revealed that his friend, who runs a garment factory, was recently forced by the fire department to purchase new escape ladders and other equipment, threatening to be fined if he refused. He was then subjected to remote enforcement by police from outside Hunan Province, citing suspected product infringement, and was ultimately fined over 500,000 yuan. "What do you mean by 'overseas enforcement'? My friend is in Changsha, and the Hubei police came over to claim the product infringed. How can that be justified?"
Ms. Wang, a retired teacher in Langfang, Hebei, also expressed frustration: "A bottle of gas used to cost 70 yuan, but now we have to replace it with a government-designated new tank, which costs 140 yuan each. If we don't replace it, we won't get gas. Don't you think this is forced consumption?"
According to an investigation by The Paper, the growth rate of non-tax revenue in many provinces this year even exceeded 100%. Local governments including Hebei, Hubei and Shaanxi have not disclosed the specific details of fines and confiscations, and the lack of transparency in information has also raised questions.
