Draft law allows quicker handling of small claims

BEIJING - A draft amendment to China's Civil Procedure Law allows small claims for debts or damage to be handled more efficiently.

Under the draft, people may sue for up to 10,000 yuan (around $1,587) in small claims court, up from the monetary cap of 5,000 yuan proposed in the first reading of the draft.

The draft is undergoing a second reading by national legislators at a bimonthly session that began Tuesday, after being shelved for later review at a bimonthly session held in October last year.

Courts at the county level, or the most basic courts, can make a final judgement in the first instance trial over a civil claim for up to 10,000 yuan, according to the latest version of the draft.

Legislator Huang Liman termed the introduction of a small claims arrangement a major step of systematic innovation by the draft amendment.

The draft comes as China strives to achieve a balance between justice and efficiency as civil claims meet with a court system unequipped to deal with the surging amount of cases, resulting in such cases lingering unresolved.

According to Huang, the move will facilitate the handling of small claims for debts or damage, namely claims made in regards to the protection of consumers' rights, salary arrears for farmers turned workers, simple private credit disputes, financing disputes involving small amounts, and disputes arising from traffic accidents and property damage.

The multi-day session of the Standing Committee of the National People's Congress is also reviewing other drafts, including a draft law on China's exit and entry administration.