Legal basis: Criminal Procedure Law of People's Republic of China (PRC).
Article 289 If both parties reach a settlement, the public security organ, the people's procuratorate and the people's court shall listen to the opinions of the parties and other relevant personnel, examine the voluntariness and legality of the settlement, and preside over the making of a settlement agreement.
Article 290 The public security organ may make suggestions to the people's procuratorate for leniency in cases where a settlement agreement is reached. The people's procuratorate may put forward suggestions for lenient punishment to the people's court; If the circumstances of the crime are minor and there is no need to be sentenced to punishment, a decision not to prosecute may be made. The people's court may punish the defendant lightly according to law.