Article 1 In order to standardize disciplinary measures imposed on managerial personnel of state-owned enterprises and to strengthen oversight over such personnel, this Regulation is hereby formulated in accordance with the Law of the People’s Republic of China on Administrative Disciplinary Measures for Public Officials (hereinafter referred to as the “Law on 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 by state-funded enterprises:

(1) Personnel who perform duties of organization, leadership, management, and supervision in wholly state-owned companies or enterprises;

(2) Personnel who, upon nomination, recommendation, appointment, or approval by Party organizations or state organs, wholly state‑owned companies or enterprises, or public institutions, perform duties of organization, leadership, management, and supervision in state‑controlled or state‑participated companies and their branches;

(3) Personnel who, with the approval or decision of an organization within a state‑funded enterprise entrusted with the duties of managing and supervising state‑owned assets, engage in organizational, leadership, management, and supervisory functions on behalf of such organization in state‑controlled or state‑participated companies and their branches.

The organs or units responsible for the appointment and removal of managerial personnel in state-owned enterprises (hereinafter referred to as the appointing and removing organs or units) shall, when imposing disciplinary sanctions on state-owned enterprise managers who have committed violations, apply the provisions of Chapters II and III of the Law on Administrative Disciplinary Measures for Public Officials, as well as the provisions of these Regulations.

Article 3 Disciplinary measures for managerial personnel of state-owned enterprises are conducted under the leadership of the Communist Party of China, in accordance with the principle of Party management of cadres, with a view to strengthening the ranks of such personnel and promoting the high-quality development of state-owned enterprises.

Article 4 　The appointing and removing authorities and units shall strengthen the education, management, and oversight of managerial personnel in state-owned enterprises. When imposing disciplinary measures on such personnel, they must adhere to the principles of impartiality and fairness, with decisions made through collective deliberation; uphold a balanced approach that combines leniency with strictness, integrating punishment with education; and observe the rule of law, basing decisions on facts and applying legal standards, thereby safeguarding, in accordance with the law, the legitimate rights and interests of managerial personnel in state-owned enterprises and other relevant parties.

Article 5 Institutions entrusted with investor duties or departments vested with cadre‑management authority shall, in accordance with laws, regulations, and relevant state provisions, guide state‑owned enterprises in integrating and optimizing their oversight resources, promote the seamless coordination of investor‑based oversight with disciplinary inspection and supervision, inspection‑based oversight, audit oversight, financial and accounting oversight, and social oversight, improve a collaborative and efficient oversight mechanism, establish internal management and oversight systems characterized by mutual cooperation and mutual checks and balances, and enhance the systematic, targeted, and effective oversight of state‑owned enterprises and their managerial personnel.

Article 6 Disciplinary measures imposed on managerial 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 unlawful conduct.

Chapter 2: Types and Application of Disciplinary Measures

Article 7 　 The types of disciplinary sanctions are:

(1) Warning;

(2) Record of demerit;

(3) A major demerit;

(4) Demotion;

(5) Dismissal from office;

(6) Dismissal.

Article 8 　 The duration of the disciplinary action is:

(1) Warning, for a period of 6 months;

(2) Reprimand, for a period of 12 months;

(3) A major demerit, for 18 months;

(4) Demotion or removal from office: 24 months.

The disciplinary decision shall take effect from the date it is made, and the period of discipline shall be calculated from the date the disciplinary decision takes effect.

Article 9 　 Where a managerial employee of a state-owned enterprise commits two or more unlawful acts that each warrant disciplinary action, separate disciplinary measures shall be imposed for each. If the types of disciplinary sanctions to be imposed differ, the most severe sanction shall be applied. Where multiple disciplinary sanctions of the same type, not exceeding removal from office, are warranted, the duration of the disciplinary measure may be set at a period longer than any single sanction but not exceeding the aggregate of all such periods; however, the maximum duration shall not exceed 48 months.

Article 10 　 Where a state-owned enterprise commits an unlawful act, or where a decision collectively made by its management personnel is unlawful and gives rise to legal liability, disciplinary sanctions shall be imposed on the responsible leading personnel and on those state-owned enterprise management personnel who bear direct responsibility.

Where two or more managerial personnel of a state-owned enterprise jointly commit an unlawful act and disciplinary action is required, each shall be subject to appropriate disciplinary measures in accordance with the responsibilities they individually bear.

Article 11 　 国有企业管理人员有下列情形之一的，可以从轻或者减轻给予处分：

（一）主动交代本人应当受到处分的违法行为；

（二）配合调查，如实说明本人违法事实；

（三）检举他人违法行为，经查证属实；

（四）主动采取措施，有效避免、挽回损失或者消除不良影响；

（五）在共同违法行为中起次要或者辅助作用；

（六）主动上交或者退赔违法所得；

（七）属于推进国有企业改革中因缺乏经验、先行先试出现的失误错误；

（八）法律、法规规定的其他从轻或者减轻情节。

从轻给予处分，是指在本条例规定的违法行为应当受到的处分幅度以内，给予较轻的处分。

减轻给予处分，是指在本条例规定的违法行为应当受到的处分幅度以外，减轻一档给予处分。

第十二条 　 国有企业管理人员违法行为情节轻微，且具有本条例第十一条第一款规定情形之一的，可以对其进行谈话提醒、批评教育、责令检查或者予以诫勉，免予或者不予处分。

国有企业管理人员因不明真相被裹挟或者被胁迫参与违法活动，经批评教育后确有悔改表现的，可以减轻、免予或者不予处分。

第十三条 　 国有企业管理人员有下列情形之一的，应当从重给予处分：

（一）在处分期内再次故意违法，应当受到处分；

（二）阻止他人检举、提供证据；

（三）串供或者伪造、隐匿、毁灭证据；

（四）包庇同案人员；

（五）胁迫、唆使他人实施违法行为；

（六）拒不上交或者退赔违法所得；

（七）法律、法规规定的其他从重情节。

从重给予处分，是指在本条例规定的违法行为应当受到的处分幅度以内，给予较重的处分。

第十四条 　 国有企业管理人员在处分期内，不得晋升职务、岗位等级和职称；其中，被记过、记大过、降级、撤职的，不得晋升薪酬待遇等级。被撤职的，降低职务或者岗位等级，同时降低薪酬待遇。被开除的，用人单位依法解除劳动合同。

第十五条 　 国有企业管理人员违法取得的财物和用于违法行为的本人财物，除依法应当由有关机关没收、追缴或者责令退赔的外，应当退还原所有人或者原持有人。

国有企业管理人员因违法行为获得的职务、职级、级别、岗位和职员等级、职称、待遇、资格、学历、学位、荣誉、奖励等其他利益，任免机关、单位应当予以纠正或者建议有关机关、单位、组织按规定予以纠正。

第十六条 　 已经退休的国有企业管理人员退休前或者退休后有违法行为应当受到处分的，不再作出处分决定，但是可以对其立案调查；依法应当给予降级、撤职、开除处分的，应当按照规定相应调整其享受的待遇，对其违法取得的财物和用于违法行为的本人财物依照本条例第十五条的规定处理。

第三章 违法行为及其适用的处分

第十七条 　 国有企业管理人员有下列行为之一的，依据公职人员政务处分法第二十八条的规定，予以记过或者记大过；情节较重的，予以降级或者撤职；情节严重的，予以开除：

（一）散布有损坚持和完善社会主义基本经济制度的言论；

（二）拒不执行或者变相不执行国有企业改革发展和党的建设有关决策部署；

（三）在对外经济合作、对外援助、对外交流等工作中损害国家安全和国家利益。

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。

第十八条 　 国有企业管理人员有下列行为之一的,依据公职人员政务处分法第三十条的规定，予以警告、记过或者记大过；情节严重的，予以降级或者撤职：

（一）违反规定的决策程序、职责权限决定国有企业重大决策事项、重要人事任免事项、重大项目安排事项、大额度资金运作事项；

（二）故意规避、干涉、破坏集体决策，个人或者少数人决定国有企业重大决策事项、重要人事任免事项、重大项目安排事项、大额度资金运作事项；

（三）拒不执行或者擅自改变国有企业党委（组）会、股东（大）会、董事会、职工代表大会等集体依法作出的重大决定；

（四）拒不执行或者变相不执行、拖延执行履行出资人职责的机构、行业管理部门等有关部门依法作出的决定。

第十九条 　 国有企业管理人员有下列行为之一的，依据公职人员政务处分法第三十三条的规定，予以警告、记过或者记大过；情节较重的，予以降级或者撤职；情节严重的，予以开除：

（一）利用职务上的便利，侵吞、窃取、骗取或者以其他手段非法占有、挪用本企业以及关联企业的财物、客户资产等；

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

(3) Offering bribes to state organs, state‑funded 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) Abusing one’s official authority or influence to seek personal gain, in violation of relevant regulations, in matters of significant importance concerning state‑owned assets—such as major decisions affecting the rights and interests of state investors—as well as in activities including engineering construction, asset disposal, publishing and distribution, and tendering and bidding, either for oneself or for others;

(5) Tolerating or acquiescing in the use, by persons with whom one has a specific relationship, of one’s official authority or influence in matters of major significance concerning the state‑owned asset investor’s rights and interests, as well as in corporate management and operations, for the purpose of seeking private gain;

(6) In violation of relevant regulations, state-owned assets are collectively appropriated for personal use in the name of the entity.

Those who refuse to rectify violations of regulations by persons with whom they have a specific relationship—such as holding office, engaging in concurrent posts, or conducting business activities—and who fail to comply with reassignment shall be removed from their posts.

Article 20 　 If a managerial personnel of a state-owned enterprise engages in any of the following acts, and the circumstances are deemed relatively serious pursuant to Article 35 of the Law on Administrative Disciplinary Measures for Public Officials, they shall be subject to a warning, a record of demerit, or a record of serious demerit; if the circumstances are particularly serious, they shall be subject to demotion or removal from office:

(1) Exceeding the approved total wage bill or overpaying wages, or establishing and disbursing wage-related income in forms other than the total wage bill, such as allowances, subsidies, bonuses, etc.;

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

(3) Violating regulations by arbitrarily determining remuneration, rewards, allowances, subsidies, and other welfare-related 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) Using public funds for tourism, or disguising such tourism under the guise of study and training, fact-finding visits, employee recuperation, or other similar pretenses.

Article 21 　 If a managerial personnel of a state-owned enterprise engages in any of the following acts, they shall, in accordance with Article 36 of the Law on Administrative Disciplinary Measures for Public Officials, be subject to a warning, a recorded demerit, or a serious recorded demerit; if the circumstances are relatively serious, they shall be demoted or removed from their post; and if the circumstances are particularly serious, they shall be dismissed:

(1) Violating relevant regulations by engaging in private business or establishing enterprises, holding shares or securities in non‑listed companies, undertaking paid intermediary activities, registering companies abroad, or making investments and acquiring equity interests—any such profit‑making activities;

(2) Taking advantage of one’s official position to facilitate others in operating enterprises engaged in business activities of the same type as those of the enterprise where the individual is employed;

(3) Violating relevant regulations by concurrently holding positions, without prior approval, in enterprises invested in by this enterprise or in other enterprises, public institutions, social organizations, intermediary agencies, international organizations, and the like;

(4) Having been approved to hold a concurrent post, but receiving remuneration or other income in violation of the relevant regulations;

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

Article 22 　 When managerial personnel of state-owned enterprises, in the course of performing their duties to provide public services, infringe upon the legitimate rights and interests of service recipients or the public interest, and such conduct is verified by the supervisory authority, which then submits a recommendation for disciplinary action, they shall, in accordance with Article 38 of the Law on Administrative Disciplinary Measures for Public Officials, be subject to a warning, a record of demerit, or a record of serious demerit if the circumstances are relatively serious; to demotion or removal from office if the circumstances are serious; and to dismissal if the circumstances are particularly serious.

Article 23 　 If 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, in accordance with Article 39 of the Law on Administrative Disciplinary Measures for Public Officials, be subject to a warning, a recorded demerit, or a major recorded demerit; if the circumstances are relatively serious, they shall be downgraded or removed from their post; and if the circumstances are particularly serious, they shall be dismissed:

(1) Withholding, appropriating, misappropriating, or delaying the remittance of budgetary revenues that are required to be turned over to the State Treasury;

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

(3) Violating relevant regulations by engaging in related-party transactions, conducting financing‑based trade, fictitious transactions, sham joint ventures, or operating under a shell‑company arrangement;

(4) Failing to carry out, or failing to accurately carry out, the registration of state-owned asset ownership within the time limit prescribed by the State; or forging, altering, leasing, lending, or selling the certificate (form) for the registration of state-owned asset ownership.

(5) Refusal to provide relevant information or the preparation of false data, thereby distorting the performance evaluation results of state-owned enterprises;

(6) Concealing the true financial condition of the enterprise, failing to provide relevant information and materials truthfully to intermediary service providers such as accounting firms, law firms, and asset appraisal agencies, or colluding with such intermediaries to fabricate false statements.

Article 24 　 If a managerial personnel of a state-owned enterprise engages in any of the following acts, they shall, in accordance with Article 39 of the Law on Administrative Disciplinary Measures for Public Officials, be subject to a warning, a recorded demerit, or a serious recorded demerit; if the circumstances are relatively serious, they shall be demoted or removed from their post; and if the circumstances are particularly serious, they shall be dismissed:

(1) Money laundering or participation in money laundering;

(2) Accepting customer funds without recording them in the accounts, illegally soliciting public deposits or engaging in disguised solicitation of public deposits, or participating in, or engaging in disguised participation in, private lending in violation of applicable regulations;

(3) Illegally granting loans or, in violation of applicable regulations, granting write‑offs of non‑performing loans, suspending interest accrual, reducing or waiving interest, deferring interest payments, or extending loan maturities; as well as writing off bad debts and disposing of non‑performing assets.

(4) Issuing financial instruments or providing guarantees in violation of applicable regulations, or accepting, making payment on, or guaranteeing unlawful negotiable instruments;

(5) Breaching fiduciary duties by improperly using client funds or other assets entrusted or held in trust;

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

(7) Forging, altering, transferring, leasing, or lending financial institution business licenses or approval documents; 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, thereby inducing investors to buy or sell securities or futures contracts;

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

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

Article 25 　 If personnel of state-owned enterprises engage in any of the following acts that result in adverse consequences or adverse effects, they shall, in accordance with Article 39 of the Law on Administrative Disciplinary Measures for Public Officials, be subject to a warning, a record of demerit, or a serious record of demerit; if the circumstances are relatively serious, they shall be demoted or removed from their posts; and if the circumstances are particularly serious, they shall be dismissed:

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

(2) Forging, altering, transferring, leasing, or lending administrative licenses or qualification certificates; or leasing or lending the name of a state-owned enterprise or the trade name contained in such name.

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

(4) Violating relevant regulations outside the territory of the People’s Republic of China, thereby causing serious engineering quality issues, triggering major labor disputes, or resulting in other grave consequences;

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

(6) Engaging in formalism and bureaucratic practices in the course of work, such as perfunctory compliance, shirking responsibility, or one-sided interpretation and rigid implementation of the Party and the state’s guidelines, policies, and major decisions and arrangements;

(7) Refusing, obstructing, or unduly delaying investor oversight, audit oversight, and financial and accounting oversight conducted in accordance with the law; or failing to rectify issues identified through such oversight, shirking responsibility, going through the motions, or implementing superficial remedial measures.

(8) Failing to provide relevant information, submit pertinent 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 unlawfully exercising official powers, 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 rural migrant workers, and other such payments;

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

Chapter Four: Procedures for Disciplinary Action

Article 26 　 The appointing and removing authorities and units, in accordance with their respective powers of cadre management, shall impose disciplinary sanctions on managerial personnel of state-owned enterprises for violations of the Law on Administrative Disciplinary Measures for Public Officials and these Regulations, thereby safeguarding the lawful rights and interests of such managerial personnel and other relevant parties.

The appointing and removing authorities and units shall, in light of the actual conditions of state-owned enterprises—including their organizational forms and structures—clearly designate the internal departments or institutions responsible for handling disciplinary matters involving managerial personnel of such enterprises (hereinafter referred to as the handling departments), and specify their duties, powers, and operating mechanisms.

Article 27 　 Investigations and disciplinary actions against managerial personnel of state-owned enterprises suspected of violating the law shall be conducted by no fewer than two staff members and shall follow the procedures set forth below:

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

(2) Upon preliminary verification, if the handling department determines that a managerial personnel of the state-owned enterprise is suspected of violating the Law on Administrative Disciplinary Measures for Public Officials and the provisions of these Regulations, and further investigation is required, the case shall be filed upon approval by the principal person in charge of the appointing or removing authority or the relevant unit. The investigating state-owned enterprise’s managerial personnel (hereinafter referred to as the “investigated person”) and his or her employing unit shall be notified in writing, and the supervisory organ with jurisdiction shall be informed.

(3) The department responsible for handling the case shall conduct a further investigation into the investigated person’s unlawful conduct, collect and verify relevant evidence, solicit information from relevant entities and individuals, and prepare a written investigation report to be submitted to the appointing or removing authority and the head of the unit. Relevant entities and individuals shall provide information truthfully.

(4) The competent department shall inform the person under investigation of the facts ascertained through the investigation and the legal basis for the proposed disciplinary action, hear their statement and defense, verify any facts, grounds, and evidence they submit, and record such findings. If the facts, grounds, or evidence presented by the person under investigation are substantiated, they shall be accepted.

(5) The handling department, after review, shall submit its recommendations for disposition and, in accordance with established procedures, refer the matter to the appointing and removing authority or the leadership body of the relevant unit for collective deliberation. Thereafter, it shall make a decision to impose disciplinary sanctions on the person under investigation, exempt such person from discipline, refrain from imposing discipline, or terminate the case, and shall notify the competent supervisory authority.

(6) The appointing or dismissing authority or unit shall, within one month from the date on which the decision specified in paragraph 5 of subsection 1 of this Article is made, notify the person under investigation and his or her employing unit in writing of the decision to impose a disciplinary sanction, to refrain from imposing such a sanction, to not impose a sanction, or to dismiss the case, and shall make such decision public within an appropriate scope. Where the matter involves state secrets, commercial secrets, or personal privacy, it shall be handled in accordance with relevant state regulations.

(7) The handling department shall file the disciplinary decision and related enforcement materials in the investigated person’s personal record, and concurrently compile the relevant documents into a case file for the disciplinary proceedings.

It is strictly prohibited to collect evidence by unlawful means, such as threats, inducements, or deception. Evidence obtained through unlawful methods may not be used as the basis for imposing disciplinary sanctions. No disciplinary sanction may be imposed more severely on the basis of the investigated person’s defense.

Article 28 　 During the investigation of serious violations of law, where necessary, the competent supervisory authority may be consulted to provide the requisite support.

Where the circumstances of the violation are complex, involve a wide range of issues, or have a significant impact, and where the appointing or removing authority or unit encounters difficulties in conducting an investigation and verification, with the approval of the head of that authority or unit, it may consult with the supervisory authority vested with jurisdiction to handle the matter.

Article 29 　 Disciplinary measures against managerial 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 and removing authority or the relevant unit, the time limit may be appropriately extended, but the extension shall not exceed six months.

Article 30 　 Where a disciplinary sanction is imposed, a written decision on the sanction shall be prepared.

The disciplinary decision shall set forth the following matters:

(1) The names, workplaces, and positions of managerial personnel of state-owned enterprises who have been subject to disciplinary sanctions (hereinafter referred to as the “sanctioned persons”);

(2) Facts of the violation and evidence;

(3) The types and legal basis of the disciplinary measures;

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

(5) The name of the authority or unit that issued the disciplinary decision, together with the date.

The decision on disciplinary action shall bear the official seal of the authority or unit that issued it.

Article 31 　 Where any person involved in the investigation and handling of illegal cases involving managerial personnel of state-owned enterprises falls under any of the following circumstances, such person shall recuse himself or herself; the person under investigation, the whistleblower, and other relevant parties may also request such recusal:

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

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

(3) The individual or their close relatives have a vested interest in the case under investigation;

(4) Other circumstances that may affect the impartial 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‑level authority or unit; the recusal of other personnel involved in the investigation and handling of unlawful cases shall be decided by the head of the appointing or dismissing authority or unit.

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

Article 32 　 Where managerial personnel of state-owned enterprises are held criminally liable in accordance with the law, the appointing or dismissing authority or unit shall, in accordance with the law, impose disciplinary sanctions based on the final judgments, rulings, and decisions of the judicial authorities, as well as the facts and circumstances established therein.

Where personnel of state-owned enterprises who have been subject to administrative penalties in accordance with the law should also be disciplined, the appointing or removing authority or the relevant unit may, on the basis of the facts and circumstances established in the final administrative penalty decision and after verification, impose disciplinary measures in accordance with the law.

After the appointing or dismissing authority or unit has rendered a disciplinary decision in accordance with paragraphs 1 and 2 of this Article, if a judicial or administrative organ, in accordance with law, alters the original final judgment, ruling, or decision, thereby affecting the original disciplinary decision, the appointing or dismissing authority or unit shall, on the basis of the altered judgment, ruling, or decision, re‑issue the corresponding disposition.

Article 33 　 When the appointing or dismissing authority or unit imposes disciplinary sanctions on managerial personnel of state-owned enterprises who serve as deputies to people’s congresses at various levels or as members of committees of the Chinese People’s Political Consultative Conference at various levels, it shall notify the relevant standing committee of the people’s congress, the presidium of the people’s congress of the township, ethnic township, or town, or the standing committee of the committee of the Chinese People’s Political Consultative Conference.

Article 34 　 Where a managerial personnel of a state-owned enterprise is suspected of committing an offense and has been placed under investigation, and it is deemed inappropriate for such person to continue performing his or her duties, the appointing or dismissing authority or organization may decide to suspend the individual from duty. During the period of investigation, without the prior consent of the appointing or dismissing authority or organization that initiated the case, the managerial personnel shall not leave the country nor resign from public office; furthermore, the appointing or dismissing authority or organization, as well as any higher-level authorities or organizations, shall refrain from transferring, promoting, rewarding, or processing retirement procedures for such individual.

Article 35 　 The investigation has revealed that when managerial personnel of state-owned enterprises suffer false reports, malicious accusations, or defamation while performing their duties in accordance with the law, thereby causing adverse repercussions, the appointing and removing authorities or units shall, in accordance with relevant regulations, promptly clarify the facts, restore the affected party’s reputation, and eliminate the negative consequences.

Article 36 　 When managerial personnel of state-owned enterprises are subject to disciplinary measures such as demotion, removal from office, or dismissal, the relevant personnel departments, in accordance with their respective administrative authority, shall, within one month of the issuance of the disciplinary decision, handle the procedures for adjusting their posts, positions, salaries, and other related benefits, and, in accordance with the law, amend or terminate their labor contracts. In exceptional circumstances, with the approval of the appointing or dismissing authority and the principal person in charge of the unit, the time limit for completing these procedures may be appropriately extended, but such extension shall not exceed six months.

Article 37 　 If managerial personnel of state-owned enterprises receive a disciplinary sanction other than dismissal, and during the period of such sanction demonstrate remorse and do not commit any further violations warranting disciplinary action, the sanction shall be automatically lifted upon expiration of the prescribed term.

Upon removal of the disciplinary sanction, performance evaluations and promotions to positions, ranks, grades, posts, staff grades, professional titles, and salary‑grade levels shall no longer be affected by the original sanction. However, for those who have been subjected to demotion or dismissal, their former positions, ranks, grades, posts, staff grades, professional titles, and salary‑grade levels shall not be restored.

The organs and units responsible for appointment and removal shall, in accordance with relevant state regulations, treat and appropriately utilize management personnel of state-owned enterprises who have been subject to disciplinary measures, uphold the principle of equally emphasizing respect and incentives on the one hand and oversight and constraints on the other, and foster a favorable environment conducive to taking initiative and getting things done.

Chapter V 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 written decision, apply to the appointing or removing authority or unit that issued the decision (hereinafter referred to as the original disciplinary decision‑making body) for a review. The original disciplinary decision‑making body shall render a review decision within one month of receiving the review application.

If the person subject to disciplinary action is unable to file a review application within the prescribed time limit due to force majeure or other legitimate reasons, they may, within ten working days after the impediment has been removed, apply for an extension of the time limit; whether such an extension is granted shall be determined by the original authority that issued the disciplinary decision.

Article 39 　 If the disciplined party remains dissatisfied with the review decision, they may, within one month from the date of receipt of the decision, file an appeal with the next higher-level authority or unit in accordance with the relevant administrative jurisdiction. The authority or unit that accepts the appeal (hereinafter referred to as the “appealing authority”) shall render a decision on the appeal within two months from the date of acceptance; in cases involving complex circumstances, the period may be appropriately extended, but such extension shall not exceed one month.

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 ten working days after the impediment has been removed; the decision on whether to grant such an extension shall be made by the appeals authority.

Article 40 　 Upon receipt of a request for review or the acceptance of an appeal by the competent authority, the relevant handling department shall establish a working group, review the original case files, and, where necessary, conduct investigations to collect and verify pertinent evidence and solicit information from relevant units and individuals. The working group shall deliberate collectively, formulate recommendations for disposition, and, in accordance with prescribed procedures, submit these recommendations to the original disciplinary decision‑making body and the leadership of the appeal‑handling authority for collective deliberation and decision‑making on the review or appeal. The outcome shall then be communicated to the disciplined individual and their employing unit in writing within one month of its issuance and publicly announced within an appropriate scope. Where the matter involves state secrets, commercial secrets, or personal privacy, it shall be handled in compliance with applicable national regulations.

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

Management personnel of state-owned enterprises shall not be subjected to more severe disciplinary measures for having filed a review or appeal.

The review and appeal procedures shall be kept separate from the original investigation; the investigators and case-handling personnel of the original case may not participate in the review or appeal proceedings.

Article 41 　 If the appointing or dismissing authority or unit discovers that a disciplinary decision made by its own organ, unit, or a subordinate organ or unit is indeed erroneous, it shall promptly rectify such decision or order the subordinate organ or unit to do so without delay.

Where a supervisory organ, upon discovering that an appointing or removing authority or unit has failed to impose disciplinary sanctions when such sanctions should be imposed, or has imposed sanctions that are unlawful or inappropriate, lawfully submits supervisory recommendations, the appointing or removing authority or unit shall adopt those recommendations and notify the supervisory organ in writing of the measures taken for their implementation. If the recommendations are not adopted, the authority or unit shall provide a reasoned explanation.

Article 42 　 Where any of the following circumstances exists, the original disciplinary decision‑making authority or the appeal body shall rescind the original disciplinary decision and render a new decision, or the appeal body shall order the original disciplinary decision‑making authority to render a new decision:

(1) The unlawful facts on which the disciplinary action is based are unclear, or the evidence is insufficient;

(2) Violating the procedures prescribed in these Regulations and thereby undermining the impartial handling of the case;

(3) Making a disciplinary decision by exceeding one’s authority or abusing one’s authority.

Article 43 　 Where any of the following circumstances exists, the original disciplinary decision‑making authority or the appeal body shall amend the original disciplinary decision, or the appeal body shall order the original disciplinary decision‑making authority to make such amendment:

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

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

(3) Improper disciplinary action.

Article 44 　 If the original disciplinary decision‑making authority and the appeal body find that the disciplinary decision correctly ascertains the facts and properly applies the law, they shall uphold it.

Article 45 　 If the disciplinary decision against a managerial employee of a state-owned enterprise is amended, and such amendment necessitates adjustments to the employee’s position, post grade, or salary and benefits level, the relevant adjustments shall be made in accordance with applicable regulations. If the disciplinary decision is revoked, and it is necessary to restore the employee’s position, post grade, or salary and benefits level, the employee shall be reassigned to a corresponding position and post at the original rank, and their reputation shall be restored within the scope of the original disciplinary decision’s public announcement.

Where managerial personnel of state-owned enterprises have had their disciplinary sanctions revoked or mitigated pursuant to Articles 42 and 43 of these Regulations, appropriate compensation shall be provided for any losses incurred in their remuneration and benefits, taking into account their actual performance of duties and contributions.

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

Chapter VI Legal Liability

Article 46 　 If the appointing and removing authorities, units, or 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 in the handling of disciplinary actions against managerial personnel of state-owned enterprises, they shall, in accordance with the provisions of that law, impose disciplinary measures on the responsible leading personnel and those directly responsible.

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

Article 48 Any relevant entity or individual who, by means of reporting or other methods, distorts and fabricates facts to falsely accuse and frame management personnel of state-owned enterprises shall bear legal liability in accordance with the law.

Article 49 　 Anyone who violates the provisions of these Regulations and commits a crime shall be held criminally liable in accordance with the law.

Chapter VII Supplementary Provisions

Article 50 　 Where the State has separately prescribed provisions for holding accountable managers of state-owned financial and cultural enterprises who have committed violations, such provisions shall apply concurrently.

Article 51 　 For cases that had already been concluded prior to the entry into force of these Regulations, any review or appeal shall be governed by the provisions in effect at the time. As for cases that have not yet been concluded, if the law in force at the time the act was committed did not deem it unlawful, the provisions then in force shall apply; if, however, the law at that time deemed it unlawful, such cases shall be handled in accordance with that law. Nevertheless, if these Regulations do not regard the conduct as unlawful, or if handling under these Regulations would result in a lighter penalty, these Regulations shall apply.

Article 52 　 This Regulation shall enter into force on September 1, 2024.