Legal basis: Civil Code of People's Republic of China (PRC).
Article 683 A legal person organ shall not act as a guarantor, except for the use of loans from foreign governments or international economic organizations with the approval of the State Council.
A legal person not for profit or an unincorporated organization for public welfare may not act as a guarantor.
Article 681 A suretyship contract is a contract in which the surety and the creditor agree that the surety will perform the debt or assume the liability when the debtor fails to perform the due debt or the circumstances agreed by the parties occur.