According to various sources the Ministry of Public Security will implement new regulations valid as of January 1, 2009 allowing for foreign drivers to be placed under the same jurisdiction as local Chinese drivers.
This means that police will have the right to detain and incarcerate foreigners suspected of being responsible for road accidents until the respective case is closed. This is in compliance with Chinese legislation which forbids foreigners to leave the country while involved in criminal or civil cases.
In addition, the law will allow guilty drivers to be imprisoned for up to three years; possible incarceration period is up to seven years for those who flee the scene of a fatal accident. Assets and bank accounts of defendants may also be frozen upon request by the victim’s family before any civil suits to cover medical treatment, loss of earnings, damages for suffering and a police fine. Getting off without paying anything is not possible as police will usually allocate part of the fault in road accidents to all parties involved.
In addition, experience has shown that foreigners are easily blamed to have caused accidents even though they are not at fault.
Foreigners are therefore encouraged to revisit the topic of driving in China. Employees with company car entitlement should let their designated drivers take them and their family around. Private car owners need to be aware of the aforementioned dangers of driving in China. People not speaking Chinese fluently should keep a phone number of a Chinese speaker close by. Both groups should ensure sufficient insurance; a police record of any accident is necessary for the insurance to pay. A valid Chinese license is still mandatory.

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