Due to insufficient financial revenue, many regions in China have increased fines to boost income from last year to present. Both tax audits and administrative law enforcement have seen a rise in fines. Internal documents from the fire department in Henan province revealed a “monthly fine target,” with companies also imposing hefty fines on employees. In Jiangsu province, an employee was fined 2,000 yuan for having breakfast at their workstation. Scholars suggest that various sectors in China are witnessing a trend of using fines to maintain management and operations.
In recent times, discussions on the increasing frequency of fines have been growing on Chinese internet platforms. Many netizens on Weibo, Douban, and Xiaohongshu have mentioned the prevalence of fines in administrative law enforcement, tax audits, and internal corporate management. Some complain that traffic police and urban management resort to “penalizing instead of managing,” citing issues like “temporary fences,” “obscured surveillance,” and “unclear signage” as violations. Some forums even mention fines becoming a measure of workload, with individuals finding it challenging to inquire about the specific basis for receiving fines.
According to reports from various media outlets, local Communist Party financial pressures have remained unresolved for an extended period. Several international research institutions have estimated that when local government financing platforms and implicit debts are considered, the debt levels in many regions are approaching or surpassing the local economic scale. Foreign media and researchers often point out that healthcare payments, infrastructure expenditures, and urbanization projects have become long-term burdens, leading to ongoing financial deficits at the local level.
Qile Rong, a scholar researching public policy in Beijing, told reporters that non-tax revenue from fines can reflect the operational status of administrative departments. “A significant increase in fine revenues often indicates adjustments in management methods,” he said, noting that changes in the financial environment often coincide with changes in administrative enforcement methods.
Examining specific cases, the Laohe Fire and Rescue Brigade in Luoyang, Henan province, was previously exposed by netizens for setting a “monthly fine target.” On October 23, Xinhua Net published a commentary titled “Can Fines Set Targets,” mentioning that the brigade was listed as a typical case by the Ministry of Justice. Reports indicated that internal documents were used on WeChat groups to assign administrative penalties to jurisdictions, including the number and amount of penalties. The Ministry of Justice labeled these practices as irregular enforcement, sparking public debate.
Qile Rong further explained to reporters that publicly available data from many regions show an increase in non-tax revenue items, highlighting the significant role of administrative fines in local finances. He pointed out that under accumulated financial pressure, such phenomena are likely to emerge simultaneously.
Similar trends in enforcement can be observed in some cities on the mainland. In 2024, several residents in Shenzhen reported to Southern Metropolis Daily that urban management departments were issuing fines intensively during a crackdown on dog management, ranging from 100 to 500 yuan. Cities like Guangzhou and Chengdu have published “Civilized City Rectification Weekly Reports” on official WeChat accounts, listing indicators like “number of violations handled,” indicating an increased normalization of enforcement measures.
The transport sector is also following a similar trajectory. Public data shows that a traffic police department in a district of Chongqing claimed, “Within 2 to 3 months, they capture 100 to 200 cases of drivers using mobile phones during driving.” In Zhengzhou, rights activist Sun Min (pseudonym) told reporters, “Almost every day, people outside my community intersection are fined, even if a child parks their bicycle on the roadside curb.”
Observing the revenue and expenditure structure of the CCP regime, the aforementioned administrative penalties are categorized as “non-tax revenue.” On November 7, the Chinese Ministry of Finance released the “Report on the Implementation of China’s Fiscal Policy in the First Half of 2025,” showing that non-tax revenue in the first half of the year was 2.27 trillion yuan, an increase of 3.7% year-on-year. The previous year saw a 25.4% year-on-year increase in the same category.
Liu Ping, a scholar studying fiscal policies, explained to reporters that changes in non-tax revenue reflect the fiscal orientation of local governments. “Many grassroots departments have included administrative fees and penalties in their annual plans in a gradual procedural manner,” he said, indicating that such revenues are seen as an immediate way to address revenue shortfalls in some regions.
Turning attention to the CCP’s tax system, the significance of penalties in local finances becomes more pronounced. Last year, several tax departments in different regions disclosed cases of “underreporting income,” which required the recovery of taxes, late fees, and fines. The Shanghai Taxation Bureau, in a report on the China Taxation Administration website, mentioned a cultural company facing a nearly million yuan fine for falsely reporting income. Zhejiang, Sichuan, and other regions also publicly announced the circumstances of tax refunds and fines for businesses and entertainment industry practitioners, along with the relevant tax items and legal basis.
Despite increased regulatory efforts, data from the Chinese Ministry of Finance’s Treasury Department revealed that in the first half of 2025, national general public budget revenue was 11.56 trillion yuan, a decrease of 0.3% year-on-year, with tax revenue falling by 1.2%.
Not only official departments but companies have also resorted to “punishment instead of management” in internal operations. An announcement circulating on an overseas platform from a company in Kunshan indicated that an employee was fined 2,000 yuan for placing items improperly at their workstation and leaving breakfast behind. The notice included photos of the scene and instructed employees to “take it as a lesson.”
A labor law scholar from Guangdong told reporters that China’s Labor Contract Law does not authorize companies to impose fines as a method of internal management. While companies often rely on systems and evaluations, the legality of such actions should be assessed based on specific circumstances.
In recent years, various official documents in many regions of China have mentioned “safeguarding grassroots expenditures.” With the rising pressure on local finances, non-tax revenue’s share in local finances is increasing. Administrative law enforcement, tax audits, and corporate fines are all on the rise. Scholars point out that fines, operating similarly across multiple sectors, are viewed by outsiders as a governance choice during local financial adjustments.