Compensation in China
Compensation is used to settle most minor disputes, from car accidents to fighting. The people like it because it cuts out the middle man, the authorities. The authorities like it because it relieves them of dealing with infractions.
A family in China pools their resources. When compensation is paid, it is usually from the family pool and the family metes out the applicable punishment to the member after they have compensated the wronged family.
This carries into modern law. If you hit someone smaller than you, for example a car hits a motorcycle, or a cyclist hits a pedestrian, the bigger vehicle is automatically declared guilty (this has slightly changed in recent years, but take it as a rule of thumb). According to law, the first act is for the involved parties to agree independently on compensation. If they can't, then it is the police's job to insist they come to an arrangement. If they refuse, the police are then the mediators of the arrangement, if this fails then it goes to the courts. If a minor case arrives at the courts, it is taken as a failure by the police. Chinese police have very limited responsibilities and failing in their clear and direct one is not praised.
So in general, compensate. If you have been established to be at fault, then allow the other party to make a proposition (they might talk to the police and agree to share). Counter with a much lower offer. If you refuse to counter, then the police will focus their attention on you. You must counter. When you do, say it is all you can get at the moment and might be able to arrange more later. Once the case is closed, there is no binding process to make you pay the future money. In countering so low, it will be taken as an insult and the police will realize that their " share" isn't worth the effort and will focus on closing the case. That is, the pressure goes to the wronged party to accept the money. If you are a foreigner, they don't have the concept of your family paying and they have no real idea how much you possible can pay. In general, you will get away with paying a paltry sum or nothing.
In a more serious case, take action quickly offering a respectable but low offer in exchange for a guarantee against prosecution.
Nah, Dimes, I haven't killed anyone, but twice people tried to stab me.
