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CONTRACTS · CHINESE LEGAL GLOSSARY REVIEWED SEP 2026
保证

Guarantee

A personal security arrangement under which a guarantor undertakes responsibility for another party’s debt under agreed and statutory conditions.

CHINESE保证
PINYINbaozheng
PREFERRED ENGLISHGuarantee
AREAContracts
WHAT 保证 MEANS

What 保证 means

A guarantee is distinct from a mortgage or pledge over specific assets. The guarantee agreement should identify the secured obligation, scope, form of liability and relevant period, while mandatory Civil Code rules may affect enforceability.

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Why the role matters

Cross-border groups often use parent or affiliate guarantees. Execution authority, company approvals, scope and the distinction between general and joint-and-several guarantee liability should be checked carefully.

CONTEXT

Where you see the term

ContextWhat it means there
LoansParent or affiliate guarantees repayment.
Supply creditA third party backs payment obligations.
EnforcementCreditor pursues guarantor according to the guarantee form and terms.
TRANSLATION NOTE
文/A

Translation note

保证 is “guarantee” in the Civil Code security context. Do not automatically translate it as “warranty”, which usually relates to product or contractual assurances.

AUTHORITY

Primary legal basis

PRIMARY AUTHORITY

PRC Civil Code, Book III (Contracts), Chapter 13 (Guarantee Contracts), Arts. 681–702; related security rules may also apply depending on the transaction

The Civil Code’s contract book governs guarantee contracts, including the guarantor’s liability framework. Mortgages and pledges are separate security interests governed principally by the property-rights book and related rules.

The Civil Code’s contract book governs guarantee contracts, including the guarantor’s liability framework. Mortgages and pledges are separate security interests governed principally by the property-rights book and related rules.

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ILLUSTRATIVE EXAMPLE

Example

A parent company signs a short “letter of guarantee” for a subsidiary’s purchase contract. The document must be analysed as a legal guarantee rather than assumed to be a non-binding comfort letter.

SOURCES AND REVIEW

Primary authorities.

Last source check
18 Sep 2026
OFFICIAL SOURCESUPPORTSCHECKED
PRC Civil Code PRC Civil Code
MAINTAINED BYChina Legal Portal Editorial
LAST REVIEWED
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