At present, there is no specific provision on the proportion of liquidated damages in Chinese laws, which generally does not exceed 30% of the total contract amount.
 According to the Civil Code, the parties may agree that when one party breaches the contract, it shall pay a certain amount of liquidated damages to the other party according to the circumstances of the breach, and may also agree on the calculation method of the amount of compensation for losses arising from the breach. If the agreed liquidated damages are lower than the losses caused, the people's court or arbitration institution may increase them at the request of the parties; If the agreed liquidated damages are too high than the losses caused, the people's court or arbitration institution may, at the request of the parties, appropriately reduce them.
 Legal basis
 Article 585 [Liquidated Damages] of the Civil Code of the People's Republic of China [Liquidated Damages] The parties may agree that when one party breaches the contract, it shall pay a certain amount of liquidated damages to the other party according to the circumstances of the breach, or they may agree on the calculation method of the amount of compensation for losses arising from the breach.
 If the agreed liquidated damages are lower than the losses caused, the people's court or arbitration institution may increase them at the request of the parties; If the agreed liquidated damages are too high than the losses caused, the people's court or arbitration institution may, at the request of the parties, appropriately reduce them.
 If the parties agree on liquidated damages for delay in performance, the defaulting party shall perform its obligations after paying the liquidated damages.