Are there any non-statutory principles that allow for the authorities to recharacterise transactions?
Since China is a civil law country all law enforcing agencies are bound to follow the statutes laid down in the laws. It must however be kept in mind that non-statutory principles do play an important role in China. Law enforcing agencies must therefore follow the laws as well as understand government policy, i.e. non-statutory principles. The non-statutory principles can sometimes turn out to lead the way for the legislation that is promulgated at a later point.
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