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The new official ignores the old scores? The law says no!

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Article author:Yingting Lawyers Group | Update time:2026-06-22 | Reading times:170

The administrative agency has changed, so the compensation promised to you before will not count? Many business owners have encountered this situation - when there is a change of leadership, the promises of the previous administration are invalidated. However, starting from May 20, 2025, Article 70 of the Private Economy Promotion Law clearly stipulates that administrative agencies shall not breach the contract or break the contract on the grounds of administrative division adjustment, term change, functional adjustment, etc.
The new official ignores the old scores? The law says no!

Article 70 of the "Private Economy Promotion Law" Local people's governments at all levels and their relevant departments shall fulfill the policy commitments made to private economic organizations and the contracts concluded with private economic organizations in accordance with the law, and shall not breach the contract or break the contract on the grounds of administrative division adjustment, government change, institutional or functional adjustment, or replacement of relevant personnel.

If policy commitments or contractual agreements need to be changed due to national interests or social public interests, they shall be carried out in accordance with legal authority and procedures, and private economic organizations shall be compensated for the resulting losses.

What does it mean? That is to say, the promises made to you by the administrative agencies are now protected by law. Whether it is meeting minutes, red-headed documents, or written agreements, as long as the company has paid costs based on this commitment, the administrative agency must honor it.
The Supreme People's Court has applied this law for the first time and ruled that the administrative agency should compensate an enterprise 8.41 million yuan. Note that this is a retrial judgment of the Supreme People’s Court. The company lost the case in the first and second instance, and the Supreme People’s Court finally reversed the verdict. The significance of this case is that the Supreme Court clearly stated its position,administrative commitmentIt is legally binding and administrative agencies cannot write bad checks.
Enterprises should keep three things: first, written commitments from administrative agencies, including meeting minutes, letters of commitment, red-headed documents, etc.; second, proof of the costs you paid for it, such as contracts, invoices, and payment records; third, reminder records over the years to prove that you have been asserting your rights.
Many bosses feel that "it is useless to sue the administrative agencies." This concept needs to change. Now that the legal environment is getting better and better, even if administrative agencies breach the contract, companies can fully safeguard their rights in accordance with the law. The key is that the evidence must be solid and the procedures must be correct.
If your company has encountered the situation of "new officials ignoring old accounts", don't be patient and seek professional lawyer evaluation as soon as possible. The timing of safeguarding rights is very important. The sooner you act, the greater your chance of winning. Yingting Lawyers Group has accumulated a lot of practical experience in handling cases in this area. If you have similar legal problems, you can seek help from professional lawyers.
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