China's legal system: a work in progress that demands respect

March 11, 2010 | BY

clpstaff &clp articles &

The annual National People's Congress (NPC) delegation always attracts an incredible amount of attention in the PRC, and generates a multitude of headlines…

The annual National People's Congress (NPC) delegation always attracts an incredible amount of attention in the PRC, and generates a multitude of headlines in local and regional media. This year's Congress was no exception, coming at a time when much attention is already focused on the country's international presence as well as its domestic development.

One comment of particular interest to legal practitioners was made by Wu Bangguo, chairman of the NPC's Standing Committee. According to the China Daily, Wu said the top legislature would “ensure the goal of formulating a socialist legal system with Chinese characteristics be achieved by the end of this year as scheduled” – that goal being the NPC's “bounden duty” and “primary task” in 2010.

What exactly does this mean? Many would assume that the PRC already has its legal system in place, given the huge number of laws and regulations already published. But, according to Wu, legislative revision is a pressing requirement, as is making legislation “more scientific and democratic” in order to meet the goal set at the fifteenth National Congress of the Communist Party (which took place in September 1997).

Wu's explanation was that although a socialist legal system with Chinese characteristics has already been basically established, rapid economic and social development continues to place new demands on China's legislative work.

The comments show how China is attempting to fit legal reform within its favoured system of five-year plans, dealing with law in the same way it deals with railways, power grids and rural development. No one in government would expect absolutely all work on the legal system to be completed by the end of the year, but when viewed relative to the position five years ago, it is clear that huge progress has been made, and most of the significant gaps have now been filled in.

Having recently revised the patent and copyright laws and promulgated a new tort liability law (see next month's magazine for a full translation), a significant task for 2010 is completion of the PRC Social Security Law and reform of electoral regulation. According to Wu, the legislature has also “identified a number of other laws that clearly need to be revised”.

Whether Wu's statement was pragmatic or merely political, one thing is clear: it's almost impossible to predict the PRC's legislative agenda, but it's easy to predict that law in China will get more complex and continue to change beyond the end of 2010. This makes it vitally important for foreign investors to surround themselves with experienced legal advisers before undertaking anything. If in doubt, ask someone you trust.

Please note that from April onwards, China Law & Practice will be edited by Ms Candice Mak. Feel free to make your thoughts, opinions and suggestions known to her by using the contact details below.

[email protected] +852 2842 6911

This premium content is reserved for
China Law & Practice Subscribers.

  • 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
For enterprise-wide or corporate enquiries, please contact our experienced Sales Professionals at +44 (0)203 868 7546 or [email protected]