Legal basis: People's Republic of China (PRC) Criminal Law.
Article 224 Whoever, in the process of signing and performing a contract, defrauds the other party of property for the purpose of illegal possession under any of the following circumstances, if the amount is relatively large, shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention and shall also, or shall only, be fined; If the amount is huge or there are other serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than three years but not more than ten years and shall also be fined; If the amount is especially huge or there are other particularly serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than 10 years or life imprisonment, and shall also be fined or confiscated: 1. Signing a contract with a fictitious unit or using another person's name; 2, forged, altered, invalid bills or other false proof of property rights as a guarantee; 3. Without actual performance ability, first perform the small contract or part of the contract to trick the other party into continuing to sign and perform the contract; 4. Escape after receiving goods, money, advance payment or secured property from the other party; 5. defrauding the other party's property by other means.
Article 266 Whoever defrauds public or private property in a relatively large amount shall be sentenced to fixed-term imprisonment of not more than three years, criminal detention or public surveillance, and shall also, or shall only, be fined; If the amount is huge or there are other serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than three years but not more than ten years and shall also be fined; If the amount is especially huge or there are other especially serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than 10 years or life imprisonment, and shall also be fined or confiscated. Where there are other provisions in this Law, such provisions shall prevail.