What penalties await companies involved in illegal subcontracting practices?

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No penalties were specified for companies involved in illegal subcontracting practices in the crackdown order.
The crackdown order issued by China’s government requires authorities to “strictly investigate and punish” illegal and unlawful mining-related issues, including illegal subcontracting or the transfer of contracts. However, it does not set out any specific penalties, fines, or other punishments for companies tied to illegal subcontracting in the information provided.
The crackdown was launched after a deadly coal mine explosion
The nationwide crackdown was ordered after a coal mine explosion killed at least 90 people. State media reported the order on May 23 from Beijing, linking the crackdown to the aftermath of the fatal incident.
Illegal subcontracting or contract transfers are among the items to be investigated
Authorities are required to investigate multiple concerns tied to unlawful mining operations. These include operations at concealed mining faces, falsification of safety monitoring data, unclear headcounts of underground workers, and illegal subcontracting or the transfer of contracts.
“Investigate and punish” was stated, but penalty details were not provided
The order explicitly calls for authorities to “strictly investigate and punish” the listed problems. Despite naming illegal subcontracting or contract transfers as an issue, the information available does not include the legal penalties or the punishment range for companies involved.
The focus is on enforcement actions by regions and relevant authorities
The crackdown is framed as an obligation for all regions and relevant authorities to launch “tough crackdowns” on illegal and unlawful activities. The information provided stops at enforcement scope and does not describe company-level outcomes for illegal subcontracting specifically.

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What penalties await companies involved in illegal subcontracting practices?

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