China: SAMR Releases Draft Revision of the “Measures for the Administration of the List of Seriously Illegal and Dishonest Market Entities”
Published 17 October 2025
Yu Du
On 9 October 2025, the State Administration for Market Regulation (SAMR) issued a draft for public comment on the Measures for the Administration of the List of Seriously Illegal and Dishonest Market Entities (Revised Draft for Comments). The public consultation period runs until 11 November 2025. This revision reflects an important step toward enhancing the role of credit regulation and improving the mechanisms for managing market entities with serious violations of law and trust.
Background and Purpose of the Revision
The original Measures for the Administration of the List of Seriously Illegal and Dishonest Market Entities were issued by SAMR on 30 July 2021 and came into effect on 1 September 2021. These measures established a legal basis for credit regulation and joint disciplinary actions against market participants who commit serious violations of laws and regulations.
However, with the development of regulatory practice, several issues have emerged. According to the explanatory note issued by SAMR, the current mechanism has unclear division of responsibilities, overly complicated procedures for listing, and difficulties in implementation. Further, the May 2024 revision of the Interim Regulations on Enterprise Information Disclosure imposed new requirements on managing seriously dishonest market entities, necessitating updates to the regulatory framework.
The revised draft aims to clarify departmental responsibilities and streamline listing procedures, strengthen institutional coordination with other laws and regulations, and enhance the effectiveness and operability of credit regulation.
Major Changes in the Revised Draft
1. Optimization of the Listing Procedure
The most significant change is the clarification of responsibilities between enforcement and credit regulation departments. Under the previous rules, enforcement agencies were also responsible for making listing decisions, which created procedural complexity. The revised draft delegates the listing work to the credit regulation division after enforcement agencies impose a major administrative penalty.
The requirement for lower-level departments to seek approval from higher-level departments before making a listing decision has been deleted. This streamlining is intended to improve administrative efficiency and ensure smoother coordination between punishment and listing processes.
2. Strengthened Institutional Linkages
To align with the revised Interim Regulations on Enterprise Information Disclosure, the draft adds “serious falsification of enterprise information disclosure” as a listing condition.
In addition, in accordance with the revised Regulations on the Implementation of the Consumer Rights Protection Law commencing operation on 1 July 2024, provisions concerning prepayment businesses have been updated to strengthen disciplinary measures against operators who abscond after collecting prepayments.
The revised draft also aligns with the Measures for the Administration of Market Regulation Credit Repair to enhance the mechanism for credit restoration.
3. Procedural Simplification and Enhanced Operability
The criteria requiring secondary determination of “malicious intent, frequency, and social harm” have been deleted to avoid redundant assessments and ensure consistent application. Timelines for information sharing and public disclosure have been maintained and clarified, for example, relevant information must be made public within 20 working days after the decision is made
4. Improved Credit Restoration Rules
The draft clarifies that entities listed for more than one year may apply for credit restoration if they have fulfilled legal obligations, corrected violations, and have not received any further major administrative penalties. It also specifies that entities will be automatically removed from the list after three years, unless specific legal restrictions apply.
Scope of Application
The revised draft continues to apply to violations in key regulatory areas, including:
1) Food safety, such as unlicensed production or sale of prohibited products;2) Drugs, medical devices, and cosmetics, including manufacturing or distributing counterfeit products;3) Quality and safety violations, including tampering with safety inspections or selling unqualified products;4) Consumer rights infringements, including fraudulent measurement and prepayment defaults;5) Market order violations, such as unfair competition, price manipulation, or false advertising.
Comment
This revision enhances the credibility and enforceability of China’s credit regulatory framework. By streamlining procedures, clarifying departmental responsibilities, and strengthening legal coordination, SAMR seeks to make the serious dishonesty list a more effective regulatory tool. It reflects the state’s commitment to building a market environment based on trust, compliance, and fair competition, while ensuring that severe violators face both administrative and credit-related consequences.
Background and Purpose of the Revision
The original Measures for the Administration of the List of Seriously Illegal and Dishonest Market Entities were issued by SAMR on 30 July 2021 and came into effect on 1 September 2021. These measures established a legal basis for credit regulation and joint disciplinary actions against market participants who commit serious violations of laws and regulations.
However, with the development of regulatory practice, several issues have emerged. According to the explanatory note issued by SAMR, the current mechanism has unclear division of responsibilities, overly complicated procedures for listing, and difficulties in implementation. Further, the May 2024 revision of the Interim Regulations on Enterprise Information Disclosure imposed new requirements on managing seriously dishonest market entities, necessitating updates to the regulatory framework.
The revised draft aims to clarify departmental responsibilities and streamline listing procedures, strengthen institutional coordination with other laws and regulations, and enhance the effectiveness and operability of credit regulation.
Major Changes in the Revised Draft
1. Optimization of the Listing Procedure
The most significant change is the clarification of responsibilities between enforcement and credit regulation departments. Under the previous rules, enforcement agencies were also responsible for making listing decisions, which created procedural complexity. The revised draft delegates the listing work to the credit regulation division after enforcement agencies impose a major administrative penalty.
The requirement for lower-level departments to seek approval from higher-level departments before making a listing decision has been deleted. This streamlining is intended to improve administrative efficiency and ensure smoother coordination between punishment and listing processes.
2. Strengthened Institutional Linkages
To align with the revised Interim Regulations on Enterprise Information Disclosure, the draft adds “serious falsification of enterprise information disclosure” as a listing condition.
In addition, in accordance with the revised Regulations on the Implementation of the Consumer Rights Protection Law commencing operation on 1 July 2024, provisions concerning prepayment businesses have been updated to strengthen disciplinary measures against operators who abscond after collecting prepayments.
The revised draft also aligns with the Measures for the Administration of Market Regulation Credit Repair to enhance the mechanism for credit restoration.
3. Procedural Simplification and Enhanced Operability
The criteria requiring secondary determination of “malicious intent, frequency, and social harm” have been deleted to avoid redundant assessments and ensure consistent application. Timelines for information sharing and public disclosure have been maintained and clarified, for example, relevant information must be made public within 20 working days after the decision is made
4. Improved Credit Restoration Rules
The draft clarifies that entities listed for more than one year may apply for credit restoration if they have fulfilled legal obligations, corrected violations, and have not received any further major administrative penalties. It also specifies that entities will be automatically removed from the list after three years, unless specific legal restrictions apply.
Scope of Application
The revised draft continues to apply to violations in key regulatory areas, including:
1) Food safety, such as unlicensed production or sale of prohibited products;2) Drugs, medical devices, and cosmetics, including manufacturing or distributing counterfeit products;3) Quality and safety violations, including tampering with safety inspections or selling unqualified products;4) Consumer rights infringements, including fraudulent measurement and prepayment defaults;5) Market order violations, such as unfair competition, price manipulation, or false advertising.
Comment
This revision enhances the credibility and enforceability of China’s credit regulatory framework. By streamlining procedures, clarifying departmental responsibilities, and strengthening legal coordination, SAMR seeks to make the serious dishonesty list a more effective regulatory tool. It reflects the state’s commitment to building a market environment based on trust, compliance, and fair competition, while ensuring that severe violators face both administrative and credit-related consequences.