Attorney Qiang Lyu Reveals Why Fraud Charges Are So Hard to Establish in China

Why is fraud so difficult to establish under Chinese law? Attorney Qiang Lyu often receives inquiries from clients saying, “Attorney Lyu, I’ve been scammed. I shipped the goods but received no payment, or I paid in full but got no delivery. This is fraud, and I want you to help me report it to the police to pursue criminal liability.”

In such situations, I always tell my clients directly: fraud is not as easy to prove as you might think. To establish a criminal fraud offense, at least three key elements must be met:

The offender fabricated facts or materially concealed the truth.
The offender possessed the intent to defraud from the very beginning.
If the offender defrauded three or more victims, it is more likely to be recognized as fraud.

In legal practice, most fraud reports submitted to the public security authorities are not accepted as criminal cases. Instead, the police will issue a written notice advising the victim to file a civil lawsuit in court.

Just put yourself in their position: If every dispute over non-payment for goods or non-delivery after payment were treated as criminal fraud, there would be no need for civil courts at all.

I am Attorney Qiang Lyu from Linyi. If you found this video helpful, please like, subscribe, and share it.

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Qiang Lyu

Attorney-at-law (PRC) ｜ Cross-Border Dispute Resolution

Qiang Lyu focuses on cross-border commercial dispute resolution, China supply chain disputes, international trade litigation, and foreign-related debt recovery matters. He has represented and assisted clients from the United States, Japan, South Korea, and Europe in disputes involving Chinese manufacturers, suppliers, and international business transactions. His practice also includes China company law, intellectual property matters, and commercial contract disputes involving foreign-invested businesses and cross-border commercial activities.

Email: lvqiang [at] xuzhousoft.com

Tel / WhatsApp / WeChat: +86 187 9542 8064