Private property rights finally codified
February 28, 2007 | BY
clpstaffThe National People's Conference (NPC) enacted its first law specifically protecting private property rights on the final day of its annual two-week session…
The National People's Conference (NPC) enacted its first law specifically protecting private property rights on the final day of its annual two-week session in February 2007.
The law, which passed China's legislature by a 2,799-to-52 vote, offers the same protections for public and private property, stating that the “lawful property of an individual person shall be protected by law, and illegally taking possession, looting and destruction of such property by any unit or individual is prohibited”. In addition to defining public and private property, the law also gives definitions to aspects of personal wealth, including income, houses and investments.
Various forms of the property law have been discussed since at least the early 1990s.
The way the bill was passed raised eyebrows among legal observers. Drafts of the law were not widely circulated, scholars who were opposed to the law were silenced by their universities and, despite a high level of interest from businessmen, entrepreneurs and urban residents, Prime Minister Wen Jiabao failed to mention property rights in his two-hour address to the nation on the legislature's opening day.
A Chinese journalist who covered the NPC session told The Washington Post that two members of the NPC's executive bureau were assigned to each provincial delegation to ensure that members understood the importance of passing the law and to try to make sure that no opposition developed.
Chinese news media was banned from reporting on the disagreements surrounding the law. According to media reports, distribution of the business magazine Caijing was halted after the magazine defied the ban and published a cover story on the property law. One week after the NPC passed the law and the Unified Corporate Income Tax Law, the magazine's English-language website featured a story on the tax law, but not on the equally high-profile property law.
This premium content is reserved for
China Law & Practice Subscribers.
A Premium Subscription Provides:
- A database of over 3,000 essential documents including key PRC legislation translated into English
- A choice of newsletters to alert you to changes affecting your business including sector specific updates
- Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
Already a subscriber? Log In Now