Abstract:

The rule of law provides the best environment to do business. And “tolerance and prudence” create the best legal environment for doing business. In China, “tolerance and prudence” are concepts of regulation and law enforcement that appear regularly in the written policies, legislation However, tensions exists between the policies and laws that apply these concepts. Enterprises are a positive force for social progress. “Tolerance and prudence” is meant to help navigate the “law enforcement iceberg” so that the difficulties of an economic downturn do not lead to the temptation to impose “fines for income.” This improves the long-term business environment. However, law enforcement must overcome the tendency to apply “punishment if impossible”, and instead put “tolerance and prudence” into every case. As the industry and the public sense that “tolerance and prudence” are the guiding principles, the legal environment to do business with attain long-term vitality.

Key words: tolerance and prudence, fine for income, four lists