The Socialist System of Laws with Chinese Characteristics

Information Office of the State Council

The People's Republic of China

October 2011, Beijing

Contents

Foreword

I. Establishment of the Socialist System of Laws with Chinese Characteristics

II.Composition of the Socialist System of Laws with Chinese Characteristics

III.Features of the Socialist System of Laws with Chinese Characteristics

IV.Improvement of the Socialist System of Laws with Chinese Characteristics

Concluding Remarks

Foreword

Governing the country by law and building a socialist country under the rule of law is a fundamental principle for the Communist Party of China (CPC) to lead the people and effectively govern the country. We need to bring into being a socialist system of laws with Chinese characteristics so as to ensure there are laws to abide by for the carrying on of state affairs and social life; this is a precondition and foundation for us to implement the fundamental principle of the rule of law in all respects, and an institutional guarantee for China's development and progress.

In 1949 the People's Republic of China was founded, marking the great transition from the centuries-old dictatorial system of feudalism to the system of people's democracy, putting an end to the period of semi-colonialism and semi-feudalism in China, and enabling the people to become masters of the country, society and their own life. For over 62 years, particularly since the policy of reform and opening up was adopted in 1978, the CPC has led the Chinese people in making the Constitution and laws. With concerted and unremitting efforts, by the end of 2010 we had put in place a socialist system of laws with Chinese characteristics, which is based on the conditions and reality of China, meets the needs of reform, opening up and the socialist modernization drive, and reflects the will of the CPC and the Chinese people. This legal system, headed by the Constitution, with laws related to the Constitution, civil and commercial laws and several other branches as the mainstay, and consisting of laws, administrative regulations, local regulations and other tiers of legal provisions, ensures that there are laws to abide by in economic, political, cultural and social development, as well as in ecological civilization building.

The socialist system of laws with Chinese characteristics is a legal foundation for socialism with Chinese characteristics to retain its nature, a legal reflection of the innovative practice of socialism with Chinese characteristics, and a legal guarantee for the prosperity of socialism with Chinese characteristics. Its establishment is an important milestone in China's development of socialist democracy and the legal system, and showcases the great achievements of reform, opening up and the socialist modernization drive. It is of great realistic and far-reaching historic significance.

I. Establishment of the Socialist System of Laws with Chinese Characteristics

The socialist system of laws with Chinese characteristics was formed gradually under the leadership of the CPC in the course of adapting itself to the cause of building socialism with Chinese characteristics.

When the People's Republic of China was founded, it was confronted with the difficult tasks of organizing and consolidating the new political power, restoring and developing the national economy, and realizing and guaranteeing the people's right to be masters of the country. To meet the needs of construction of the political power, from 1949 to 1954, before the convening of the First National People's Congress (NPC), China promulgated and implemented the Common Program of the Chinese People's Political Consultative Conference, which acted as a temporary constitution, and enacted the Organic Law of the Central People's Government, Trade Union Law, Marriage Law, Land Reform Law, Interim Regulations on the Organization of the People's Courts, Interim Regulations on the Organization of the Supreme People's Procuratorate, Regulations on Punishment of Counter-revolutionaries, Interim Regulations on Punishment for Impairment of the State Currency, Regulations on Punishment for Embezzlement, Electoral Law of the National People's Congress and Local People's Congresses, and laws and regulations on the organization of local people's governments and local judicial organs, on regional ethnic autonomy, on the management of public and private enterprises, and on labor protection. With these laws and regulations, New China embarked on its course of development of democracy and the legal system.

In 1954 the First Session of the First NPC was held. The session adopted the first Constitution of New China, which established the principles for people's democracy and socialism, established the people's congress system as a fundamental political system, and provided for the basic rights and obligations of Chinese citizens. The session also adopted organic laws of the NPC, the State Council, local people's congresses and local people's committees, people's courts, and people's procuratorates, thus establishing the basic principles for state affairs. In 1956 the Eighth National Congress of the CPC proposed that "the state must make a complete legal system gradually and systematically according to its needs." Before the "cultural revolution" broke out in 1966, China's legislature had enacted over 130 laws and decrees. The building of democracy and the legal system in this period provided valuable experiences for building a socialist system of laws with Chinese characteristics. During the "cultural revolution," China suffered grave setbacks in its work to improve democracy and the legal system, and its legislation almost came to a standstill.

In 1978 the Third Plenary Session of the 11th Central Committee of the CPC summarized the experience and lessons since the founding of New China, made a historic decision to shift the focus of the work of the Party and the state to economic development and to adopt the policy of reform and opening up, and stated, "To ensure people's democracy, we must strengthen our socialist legal system, which will enable democracy to be institutionalized and codified, and ensure that such system and laws are stable, continuous and authoritative. All this will ensure that there are laws to go by, that they are observed and strictly enforced, and that violators are brought to book." This session ushered in a new chapter in China's history of reform and opening up, and the building of the socialist democracy and legal system. Legislation in this period focused on restoring and re-establishing state order, and carrying out and advancing reform and opening up. In 1979 the Second Session of the Fifth NPC passed a resolution concerning the amendment to several provisions of the Constitution, which provided that local people's congresses at and above the county level established standing committees, and deputies to the people's congresses of counties were to be elected directly by their constituencies. The meeting also enacted the Electoral Law of the National People's Congress and Local People's Congresses, Organic Law of the Local People's Congresses and Local People's Governments, Organic Law of the People's Courts, Organic Law of the People's Procuratorates, Criminal Law, Criminal Procedure Law, and Law on Chinese-Foreign Equity Joint Ventures, marking the beginning of large-scale legislation work in the new period.

In 1982, to adapt to the great changes in the economic, political, cultural and social life of China, the Fifth Session of the Fifth NPC adopted the present Constitution, establishing the fundamental system of the country and fundamental principles for state affairs, and setting basic tasks for the country, providing basic guarantees for reform and opening up, and the socialist modernization drive in the new period and symbolizing that China's efforts to improve democracy and the legal system had entered a new era. As reform and opening up deepened, and profound changes took place in China's economy and society, China made amendments to the Constitution in 1988, 1993, 1999 and 2004, respectively. These amendments affirmed the important status of the non-public sector of the economy, and wrote into the Constitution that the state "practices a socialist market economy," "exercises the rule of law, building a socialist country governed according to law," and "respects and protects human rights," that "citizens' lawful private property is inviolable," and that "the system of multi-party cooperation and political consultation led by the Communist Party of China will exist and develop in China for a long time to come." These amendments contributed to China's economic, political, cultural and social development and progress. During this period, to meet the needs for centering on economic development and promoting reform and opening up, the legislature enacted the General Principles of the Civil Law, Law on Industrial Enterprises Owned by the Whole People, Law on Chinese-Foreign Cooperative Joint Ventures, Law on Foreign-funded Enterprises, Patent Law, Trademark Law, Copyright Law, Economic Contract Law, Law on Enterprise Bankruptcy, and some other laws. To carry out the policy of "one country, two systems," the legislature enacted the Basic Law of the Hong Kong Special Administrative Region and the Basic Law of the Macao Special Administrative Region. To strengthen ethnic unity, develop socialist democracy and safeguard citizens' legitimate rights and interests, the legislature enacted the Law on Regional Ethnic Autonomy, Organic Law of the Villagers' Committees, Criminal Procedure Law, Civil Procedure Law, Administrative Procedure Law, and some other laws. To protect and improve the living and ecological environment, the legislature enacted the Environmental Protection Law, Law on the Prevention and Control of Water Pollution, Law on the Prevention and Control of Atmospheric Pollution, and some other laws. To promote education and culture, the legislature enacted the Compulsory Education Law, Law on the Protection of Cultural Relics, and some other laws. These great achievements in legislation laid an important foundation for the establishment of the socialist system of laws with Chinese characteristics.

In 1992 the 14th National Congress of the CPC made an important strategic decision to establish a socialist market economy. It expressly stated that the establishment and improvement of this socialist market economy must be regulated and guaranteed by a complete legal regime. To meet the requirements for establishing a socialist market economy, the Chinese legislature accelerated the pace of enacting economic laws; to regulate market players, maintain market order, strengthen macro-control and promote opening to the outside world, the legislature enacted the Company Law, Partnership Enterprise Law, Law on Commercial Banks, Law on Township Enterprises, Anti-Unfair Competition Law, Law on the Protection of Consumers' Rights and Interests, Product Quality Law, Auction Law, Guaranty Law, Maritime Code, Insurance Law, Negotiable Instruments Law, Law on Urban Real Estate Administration, Advertising Law, Law on Certified Public Accountants, Arbitration Law, Audit Law, Budget Law, Law on the People's Bank of China, Foreign Trade Law, Labor Law, and some other laws. To improve criminal laws, the legislature revised the Criminal Law, making it unified and complete, and revised the Criminal Procedure Law, improving criminal procedure. To regulate and supervise the use of power, the legislature enacted the Law on Administrative Penalty, Law on State Compensation, Judges Law, Public Procurators Law, Law on Lawyers, and some other laws. To strengthen the protection of the environment and resources, the legislature enacted the Law on the Prevention and Control of Environmental Pollution by Solid Waste, and some other laws while revising the Mineral Resources Law and some other laws.

In 1997 as the socialist market economy was gradually put in place, the level of opening up was constantly enhanced, the efforts to improve democracy and the legal system were advanced, and all undertakings were developing, to advance the cause of building socialism with Chinese characteristics in all aspects in the 21st century, the CPC, at its 15th National Congress, set the first ten-year target for the national economic and social development for the new century, established a basic strategy of "governing the country according to law and building a socialist country ruled by law" and set the goal of completing the socialist system of laws with Chinese characteristics by the year 2010. To achieve this goal, to guarantee and promote the socialist market economy, and to meet the requirements of joining the World Trade Organization (WTO), the Chinese legislature kept on making new economic laws. It enacted the Securities Law, Contract Law, Law on Bid Invitation and Bidding, Trust Law, Law on Individual Proprietorship Enterprises, Law on the Contracting of Rural Land, Government Procurement Law, and some other laws, while revising the Foreign Trade Law, Law on Chinese-Foreign Equity Joint Ventures, Law on Chinese-Foreign Cooperative Joint Ventures, Law on Foreign-funded Enterprises, Patent Law, Trademark Law, Copyright Law, and some other laws. To regulate legislative activities and improve the legislation system, the NPC enacted the Law on Legislation, systematizing and codifying the principles, mechanism, extent of power and procedure of legislation, and the systems of legal interpretation, application of law, and registration and other systems. To develop socialist democracy, foster socialist culture, protect the ecological environment, and develop social undertakings, the legislature enacted the Administrative Reconsideration Law, Higher Education Law, Law on Prevention and Control of Occupational Diseases, and some other laws; revised the Trade Union Law, Law on the Protection of Cultural Relics, Marine Environmental Protection Law, Pharmaceuticals Administration Law, and some other laws. And to ensure that the laws are effectively carried out, the NPC Standing Committee made legal interpretations of articles in the Criminal Law, Basic Law of the Hong Kong Special Administrative Region and some other laws. These efforts enabled a socialist system of laws with Chinese characteristics to take shape.

Entering the new century, the CPC set the goal of building a moderately prosperous society of a higher level in all aspects for the benefit of over one billion people by 2020 at its 16th and 17th national congresses. To meet this goal, and to improve socialist democracy and the socialist legal system, fully carry out the basic strategy of governing the country by law, better safeguard the people's rights and interests, social fairness and justice, and promote social harmony, the Chinese legislature strengthened legislation work and constantly improved the quality of legislation. To safeguard China's sovereignty and territorial integrity, and promote the peaceful reunification of the country, the legislature enacted the Anti-Secession Law. To develop socialist democracy, it enacted the Law on the Supervision of Standing Committees of People's Congresses at All Levels, Administrative Licensing Law, Administrative Coercion Law, and some other laws. To protect the lawful rights and interests of the citizens, legal persons and other organizations, and guarantee and promote the healthy development of the socialist market economy, the legislature enacted the Property Law, Tort Law, Law on Enterprise Bankruptcy, Anti-monopoly Law, Law on Anti-money Laundering, Enterprise Income Tax Law, Law on Vehicle and Vessel Taxation, Law on the State-owned Assets of Enterprises, Banking Supervision Law, and some other laws. To improve the social security system, and ensure and improve the people's livelihood, the legislature enacted the Social Insurance Law, Labor Contract Law, Employment Promotion Law, People's Mediation Law, Law on Labor Dispute Mediation and Arbitration, Food Safety Law, and some other laws. To conserve resources, protect the environment and build a resource-conserving and environmentally-friendly society, the legislature enacted the Law on Renewable Energy, Circular Economy Promotion Law, Law on Environmental Impact Assessment, and some other laws. In addition, the Chinese legislature also promulgated and revised a group of laws to strengthen social management and safeguard social order.

As the NPC and its Standing Committee enact laws, the State Council and local people's congresses and their standing committees, based on their scope of legislative power as prescribed in the Constitution and related laws, have adopted many administrative regulations and local regulations, which play an important role in improving China's socialist democracy and legal system, and promoting the establishment of the socialist system of laws with Chinese characteristics.

To ensure a unified legal system and make it more scientific and consistent, legislative bodies at different levels sorted out laws and regulations on several occasions. From 2009, the NPC Standing Committee, the State Council, and local people's congresses and their standing committees started to sort out laws and regulations in an all-round way. The NPC Standing Committee annulled eight laws and decisions about legal issues, and revised 59 laws. The State Council annulled seven administrative regulations and revised 107 administrative regulations. Local people's congresses and their standing committees annulled 455 local regulations, and revised 1,417 local regulations. Such work has helped to solve the problem of incompatibility among laws and regulations.

Since New China was founded, and particularly since the policy of reform and opening up was introduced in 1978, China has made remarkable achievements in its legislation work. By the end of August 2011, the Chinese legislature had enacted 240 effective laws including the current Constitution, 706 administrative regulations, and over 8,600 local regulations. As a result, all legal branches have been set up, covering all aspects of social relations; basic and major laws of each branch have been made; related administrative regulations and local regulations are fairly complete; and the whole legal system is scientific and consistent. A socialist system of laws with Chinese characteristics has been solidly put into place.

II. Composition of the Socialist System of Laws with Chinese Characteristics

The socialist system of laws with Chinese characteristics is an organic integration of the related laws of the Constitution, civil and commercial laws, administrative laws, economic laws, social laws, criminal laws, litigation and non-litigation procedural laws, and other legal branches, with the Constitution in the supreme place, the laws as the main body, and administrative and local regulations as the major components.

1. Tiers of the socialist system of laws with Chinese characteristics

The Constitution is the paramount law of the socialist system of laws with Chinese characteristics. As China's fundamental law, the Constitution assumes the commanding position in the socialist system of laws with Chinese characteristics and is the fundamental guarantee of lasting stability and security, unity of ethnic groups, economic development and social progress. In China, people of all ethnic groups, all state organs, the armed forces, all political parties and public organizations, and all enterprises and institutions in the country must take the Constitution as the basic standard of conduct, and they have the duty to uphold the dignity of the Constitution and ensure its implementation.

China's present Constitution is one with Chinese characteristics and geared to the needs of socialist modernization, and is the general charter for governance of the country and good order of the nation. It was passed by the NPC in 1982 after nationwide discussion. Later, in accordance with the national economic and social development, the NPC passed four Amendments to the Constitution. China's Constitution defines the basic system and basic tasks of the state, affirms the leadership of the CPC, establishes the guiding role of Marxism-Leninism, Mao Zedong Thought, Deng Xiaoping Theory and the important thought of the Three Represents, determines the state system as a people's democratic dictatorship led by the working class and based on the alliance of workers and peasants, and takes the system of people's congresses as the form of administration. It rules that all state power belongs to the people and that the citizens enjoy extensive rights and freedom in accordance with the law, establishes the system of multi-party cooperation and political consultation led by the CPC, the system of regional ethnic autonomy and the system of primary-level self-governance, and specifies the basic economic system in which public ownership is dominant and diverse forms of ownership develop side by side and the distribution system in which distribution according to work is dominant and diverse modes of distribution coexist. While maintaining its stability, China's Constitution is constantly improving and advancing with the times, along with the reform and opening up and the progress of the cause of socialist modernization. Promptly written into the Constitution are important experience, principles and systems that have been proven mature by practice, which fully reflects the outstanding achievements of China's reform and opening up, the great achievements of the cause of socialist construction with Chinese characteristics and the self-improvement and constant development of the socialist system, providing a fundamental guarantee for the progress of the reform and opening up, and socialist modernization.

The Constitution has supreme legal authority in the socialist system of laws with Chinese characteristics. All laws, administrative and local regulations must be made in accordance with the Constitution and follow its basic principles, and must not contravene the Constitution.

The laws are the main body of the socialist system of laws with Chinese characteristics. The Constitution stipulates that the NPC and its Standing Committee exercise the legislative power of the state. The laws formulated by the NPC and its Standing Committee are the main body of the socialist system of laws with Chinese characteristics, and deal with matters of fundamental and overall importance to national development and those which affect the country's stability and long-term development. The laws are the basis of the nation's legal system, and must not be contravened by administrative or local regulations.

The Law on Legislation ensures exclusive legislative power to the NPC and its Standing Committee. The NPC enacts and amends basic laws governing criminal offences, civil affairs, state organs and other matters; the Standing Committee of the NPC enacts and amends laws other than the ones to be enacted by the NPC. When the NPC is not in session, it may supplement and amend laws enacted by the NPC, but must not contradict the basic principles of such laws. The Law on Legislation also stipulates that the following must be governed by law: affairs concerning state sovereignty; formation, organization, and functions and powers of state organs; the system of regional ethnic autonomy; the system of special administrative regions; the system of primary-level self-governance; criminal offences and their punishment; mandatory measures and penalties involving deprivation of citizens' political rights or restriction of the freedom of the person; requisition of non-state-owned property; basic civil system; basic economic system; basic systems of fiscal administration, taxation, customs, finance and foreign trade; systems of litigation and arbitration; and other affairs.

The laws enacted by the NPC and its Standing Committee establish the important and basic legal systems in the nation's economic, political, cultural, social and ecological civilization construction, are the main body of the socialist system of laws with Chinese characteristics and provide an important basis for the formulation of administrative and local regulations.

Administrative regulations are an important component of the socialist system of laws with Chinese characteristics. The State Council formulates administrative regulations in accordance with the Constitution and laws, which is an important form of the State Council's implementation of its responsibility endowed by the Constitution and laws. The administrative regulations may regulate matters concerning the implementation of the provisions of the laws and performance of the administrative functions and powers of the State Council. For matters that shall be governed by laws to be formulated by the NPC and its Standing Committee, the State Council may enact administrative regulations first in its place with authorization from the NPC and its Standing Committee. The administrative regulations occupy an important position in the socialist system of laws with Chinese characteristics by detailing the related systems stipulated by laws, elaborating and supplementing the laws.

The State Council, in accordance with the actual needs of socioeconomic development and administrative work, has enacted - within its statutory power limits and conforming to legal procedures - a large number of administrative regulations which cover all areas of administration, concerning the nation's economic, political, cultural and social matters. They play an important role in the implementation of the Constitution and laws, the guaranteeing of the reform and opening up and socialist modernization, the promotion of comprehensive, balanced and sustainable economic and social development and the advancement of administration in accordance with law of the people's governments at all levels.

Local regulations are another important component of the socialist system of laws with Chinese characteristics. The people's congresses and their standing committees of the provinces, autonomous regions, municipalities directly under the central government, and the larger cities may, in accordance with the Constitution and laws, formulate local regulations, which is an important channel and form of the people's participation in the administration of state affairs and promotion of local economic and social development by law. The people's congresses and their standing committees of the provinces, autonomous regions and municipalities directly under the central government may, in the light of the specific local conditions and actual needs, formulate local regulations, provided that they do not contradict the Constitution, the laws and the administrative regulations. The people's congresses and their standing committees of the larger cities may, in the light of the specific local conditions and actual needs, formulate local regulations, provided that they do not contradict the Constitution, laws, administrative regulations and local regulations of their respective provinces or autonomous regions. Moreover, they shall submit such regulations to the standing committees of the people's congresses of the provinces or autonomous regions for approval before implementation. The people's congresses of the ethnic autonomous areas have the power to formulate autonomous regulations and separate regulations on the basis of the political, economic and cultural characteristics of the local ethnic group(s). Where certain provisions of the laws and administrative regulations are concerned, adaptation may be made in autonomous regulations and separate regulations, but such adaptation may not contradict the basic principles of the laws and administrative regulations. However, no adaptation may be made to the provisions of the Constitution and the Law on Regional Ethnic Autonomy, or the provisions in other laws and administrative regulations that are specially formulated to govern the ethnic autonomous areas. The autonomous regulations and separate regulations of the autonomous regions shall be submitted to the Standing Committee of the NPC for approval before they go into effect. The autonomous regulations and separate regulations of the autonomous prefectures or counties shall be submitted to the standing committees of the people's congresses of the relevant provinces, autonomous regions or municipalities directly under the central government for approval before they go into effect. The people's congresses and their standing committees of the provinces and cities where special economic zones are located may, upon authorization by the NPC and its Standing Committee and in the light of specific local conditions and actual needs, formulate regulations in accordance with provisions of the Constitution and basic principles of the laws and administrative regulations, and enforce them within the limits of the special economic zones. Local regulations may be formulated to govern matters requiring the formulation of rules to implement the provisions of laws and administrative regulations, and matters pertaining to local affairs. Except for matters governed by laws exclusively formulated by the NPC and its Standing Committee, local regulations can also be made on other matters which are not yet covered by existing laws and administrative regulations. The local regulations also occupy an important position in the socialist system of laws with Chinese characteristics. They elaborate and supplement the laws and administrative regulations, extend and improve national legislation and accumulate useful experience for national legislation.

Local people's congresses and their standing committees, which actively exercise local legislative functions and powers, have enacted a large number of local regulations in the light of the actual conditions of local economic and social development, playing an important role in guaranteeing the effective implementation of the Constitution, laws and administrative regulations within their respective administrative regions, and promoting the reform and opening up and socialist modernization drive.

2. Branches of the socialist system of laws with Chinese characteristics

Laws related to the Constitution. The laws related to the Constitution are the collection of legal norms supporting the Constitution and directly guaranteeing its enforcement and the operation of state power. They regulate the political relationships of the state and mainly consist of laws in relation to the establishment, organization, functions, powers and basic working principles of state organs; laws on the system of regional ethnic autonomy, the system of special administrative regions and the primary-level self-governance; laws in relation to maintaining state sovereignty, territorial integrity, national security and national symbols; and laws in relation to guaranteeing the basic political rights of citizens. By the end of August 2011 China had enacted 38 laws related to the Constitution, as well as a number of administrative and local regulations.

China has formulated electoral laws related to the NPC and local people's congresses at all levels, organic laws of local people's congresses and people's governments at all levels, and developed mechanisms for the election of deputies of the people's congresses and the leadership of state organs, providing an institutional guarantee for the people's exercise of state power and a legal basis for the formation of state organs. It has enacted organic laws of the NPC, the State Council, the People's Courts and the People's Procuratorates, and established systems concerning the organization, function and power and limits of related state organs. To implement the "one country, two systems" policy and realize national reunification, it has promulgated the basic laws of the Hong Kong and Macao special administrative regions and established the system of special administrative region which has ensured the long-term prosperity and stability of Hong Kong and Macao. It has formulated organic laws governing urban residents' committees and villagers' committees for the establishment of urban and rural primary-level self-governance. In this way, citizens directly exercise the rights of democratic election, decision, administration and supervision by law, and implement democratic self-government of public and welfare affairs at the grassroots level, which have become the most direct and extensive democratic practices in the country. China has promulgated the Law on the Procedure for the Conclusion of Treaties, Law on Territorial Waters and the Contiguous Zones, Law on Exclusive Economic Zones and the Continental Shelf, Anti-Secession Law, Law on the National Flag, Law on the National Emblem, and other laws, and established a legal system which maintains state sovereignty and territorial integrity while safeguarding the fundamental interests of the country. It has enacted the Law on Assemblies, Processions and Demonstrations, Law on State Compensation, and other laws, as well as administrative regulations concerning ethnic group, religion, petition, and publication and registration of mass organizations, which guarantee the basic political rights of the citizens.

China fully protects its citizens' right to vote and stand for election. Elections follow the principles of universal suffrage and equality, and are carried out in the forms of direct, indirect and competitive elections. The Constitution stipulates that all citizens of the People's Republic of China who have reached the age of 18, except persons who have been deprived of their political rights in accordance with the law, shall have the right to vote and stand for election, regardless of ethnic status, race, sex, occupation, family background, religious belief, education, property status or length of residence. To guarantee its citizens' right to vote and stand for election, China is constantly modifying and improving the electoral system in accordance with the country's actual conditions, and has gradually realized the election of deputies to the people's congresses consonant with the proportion of the populations in urban and rural areas, and ensured that an appropriate number of representatives can appear at the NPC from all regions, ethnic groups and walks of life, realizing complete equality of the voting right of urban and rural residents.

China has enacted the Law on Regional Ethnic Autonomy, which ensures the implementation of the system of regional ethnic autonomy, fully respects and guarantees the right of ethnic minorities to administer their own affairs, and protects the legitimate rights and interests of the ethnic minorities by law. According to the Constitution and laws, China has currently 155 ethnic autonomous areas, i.e. five autonomous regions, 30 autonomous prefectures and 120 autonomous counties (banners). In addition, there are over 1,100 villages where ethnic minorities live in concentrated communities. According to the Constitution and the Law on Regional Ethnic Autonomy, ethnic autonomous areas have extensive autonomous power. First, they have the exclusive right to govern the local affairs of their ethnic groups and other affairs within their respective administrative regions. The chairman or vice-chairmen of the standing committee of the people's congress of an ethnic autonomous area must be a member of the ethnic group exercising regional autonomy in the area, and the head of an autonomous region, autonomous prefecture or autonomous county must be a citizen of the ethnic group exercising regional autonomy in the area concerned. Secondly, the people's congresses of ethnic autonomous areas have the power to enact regulations on the exercise of autonomy and separate regulations in the light of the political, economic and cultural characteristics of the ethnic group or groups in the areas concerned, and by law may also make adaptations to the provisions of laws and administrative regulations in the light of the characteristics of the ethnic group(s) in the areas concerned. By the end of August 2011, the ethnic autonomous areas had enacted more than 780 regulations on the exercise of autonomy, as well as separate regulations, which are currently in force. Thirdly, ethnic autonomous areas use and develop their own spoken and written languages. Fifty-three of the 55 minority groups have their own languages, and there are altogether 72 languages; 29 minority groups have their own scripts. The system of regional ethnic autonomy established by the Constitution and the Law on Regional Ethnic Autonomy is consistent with the common interests and development needs of all China's ethnic groups. It guarantees the minority groups' self-government of their own affairs by law, their democratic participation in the administration of state and social affairs, and their equal entitlement to economic, political, social and cultural rights, and maintains relations of equality, solidarity, mutual assistance and harmony among ethnic groups.

China respects and upholds human rights. The Constitution has comprehensive stipulations on the fundamental rights and freedoms of the citizens. The state has promulgated a series of laws and regulations and has developed a comparatively complete legal system to protect human rights, and ensures the citizens' right to subsistence and development, personal rights and property rights, freedom of religious belief, of speech, of the press, of the assembly, of association, of procession and of demonstration, the right to social security and education, as well as other economic, political, social and cultural rights. The Constitution stipulates that citizens of the People's Republic of China enjoy the freedom of religious belief. No state organ, public organization or individual may compel citizens to believe in, or not to believe in, any religion; nor may they discriminate against citizens who believe in, or do not believe in, any religion. The State Council has also promulgated the Regulations on Religious Affairs. Currently China has a total of more than 100 million believers in various religions, and the state fully protects its citizens' freedom of religious belief. The Constitution also provides that citizens who have suffered losses as a result of infringement of their civic rights by any state organ or functionary have the right to compensation in accordance with the provisions of the law. The state has enacted the Law on State Compensation and established the system of state compensation to effectively guarantee the right to state compensation of all citizens, legal persons and other organizations in accordance with the law.

Civil and commercial laws. Civil laws adjust property and personal relationships between civil subjects with equal status, that is, between citizens, between legal persons and between citizens and legal persons, and follow the principles of equal status between civil subjects, autonomy of will, fairness, honesty and credibility, and other basic principles. Commercial laws adjust commercial relationships between business subjects, and follow the basic principles of Civil Law and the principles of the freedom of commercial transaction, compensation of equal value and convenience and safety, among other principles. By the end of August 2011 China had promulgated 33 civil and commercial laws, as well as a large number of administrative and local regulations concerning commercial activities.

The state enacted the General Principles of the Civil Law, which establishes the basic principles that shall be followed in civil and commercial activities, and defines the target of regulation and basic principles of civil laws, as well as the systems concerning civil subjects, civil activities, civil rights and civil liability. With the development of the market economy, China gradually formulated the Contract Law, Property Law, Law on the Contracting of Rural Land and other laws, and established and improved the system of creditors' rights and the system of property rights including the proprietary rights, usufructuary rights and collateral rights; enacted the Tort Law and improved the tort responsibility system; promulgated the Marriage Law, Adoption Law, Succession Law and other laws and established and improved the marriage and family system; formulated the Law of the Application of Law in Foreign-related Civil Relations and improved the legal system of civil relations with foreigners; made the Company Law, Partnership Enterprise Law, Law on Individual Proprietorship Enterprises, Law on Commercial Banks, Law on Securities Investment Fund, Law on Specialized Farmers' Cooperatives, and other laws, and established and improved the system of business subjects. It also promulgated Securities Law, Maritime Code, Negotiable Instruments Law, Insurance Law and other laws, and established and improved the system of commercial activities. The systems of maritime trade, negotiable instruments, insurance, securities and other market economic activities gradually took form and quickly developed.

China attaches great importance to the protection of intellectual property rights, and has promulgated a large number of laws and regulations, including the Patent Law, Trademark Law, Copyright Law, Regulations on the Protection of Computer Software, Regulations on the Protection of Integrated Circuit Layout Design, Regulations on the Collective Administration of Copyright, Regulations on the Protection of the Right to Network Dissemination of Information, Regulations on the Protection of New Varieties of Plants, Regulations on the Customs Protection of Intellectual Property Rights, Regulations on the Administration of Special Signs, Regulations on the Protection of Olympic Symbols, and other laws and regulations, centered on the protection of intellectual property rights. The promulgation of the Trademark Law in 1982 marked the beginning of China's systematic development of a modern legal system covering intellectual property rights. To further enhance the protection of intellectual property rights in China and meet the requirements for joining the WTO, China has been constantly improving the legal system of intellectual property rights, and has made a number of amendments to the Patent Law, Trademark Law, Copyright Law and other laws to highlight legal protection of the promotion of scientific and technological advancement and innovation from the perspectives of the principles of legislation, the contents of rights, the standard of protection and the means of legal remedy, among others. By the end of 2010, the state had approved over 3,890,000 patents of various types, and effectively registered over 4,600,000 trademarks, including 670,000 trademarks from 177 countries and regions. According to incomplete statistics, during the period 2001-2010 copyright administration organs at various levels confiscated 707 million pirated copies, delivered 93,000 administrative penalties and transferred 2,500 cases to judicial organs.

To promote the reform and opening up, and expand international economic cooperation and technical exchanges, China enacted Law on Chinese-Foreign Equity Joint Ventures, Law on Foreign-funded Enterprises and Law on Chinese-Foreign Cooperative Joint Ventures, with provisions on the investment conditions, procedures, operation, supervision, administration, and the protection of legitimate rights and interests of foreign investors in China. The state has established the principle that foreign investors should respect China's sovereignty when investing in China and other principles, including the protection of investors' legitimate rights and interests, equality and mutual benefit, extending of preferential policies and conforming to international prevailing norms, creating a favorable environment for foreign investors in China. To better implement the principles of equality and mutual benefit and conforming to international prevailing norms, China has made several amendments to the above three laws, and fully guarantees the legitimate rights and interests of foreign investors in their investment and commercial activities in China. By the end of 2010 China had approved the establishment of 710,747 foreign-funded enterprises with an actual investment of US$1.107858 trillion, which fully demonstrates the constant improvement of China's legal system regarding the protection of foreign investors.