INTRODUCTION TO CHINESE LAW

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1 CHINA INTRODUCTION TO CHINESE LAW Edited by Wang Chenguang, M.A., M.L., LL.M. Associate Professor, Department of Law City University of Hong Kong and Zhang Xianchu, J.D., M.C.L., LL.B. University Lecturer, Department of Law City University of Hong Kong HONG KONG SINGAPORE SWEET & MAXWELL ASIA 1997

2 Preface Table of Cases Table of Legislation v xiv xv Chapter 1 Introduction: An Emerging Legal System [Wang Chenguang) Introduction 1 Historical Survey of Traditional Chinese Law and Modern Chinese Law 2 Historical Development of the PRC 9 Problems in the PRC Legal System 13 Hierarchy of Chinese Law 15 Judicial Structure and Practice 23 Theoretical Issues in Contemporary Chinese Law 26 Chapter 2 Constitutional Law [Zhu Guobin) Introduction 31 The Basic Political and Economic Systems 36 The People's Congress and Legislative System 43 Head of State The President of the People's Republic of China 51 The People's Government and the Executive Power 53 The Central Military Commission 57 The Judicial System and Institutions 58 The Fundamental Rights and Duties of Citizens 64 Conclusion 71 Chapter 3 Administrative Law {Lin Feng) Introduction 75 Administrative Acts 76 IX

3 Administrative Reconsideration 78 Judicial Review 87 State Compensation I 01 Conclusion 106 Chapter 4 Criminal Law [Ian Dobinson) Introduction 107 Structure of Criminal Law 109 Conceptual Analysis 109 Special Offences 119 Supplementary Sources 123 Conclusion 124 Chapter 5 Criminal Procedure Law [Fu Hualing) Introduction 129 Investigative Powers 130 Procuratorial Powers 146 Incidental Civil Action 149 Private Prosecution 150 Trial at First Instance 150 Summary Proceedings 155 Procedure of Second Instance 156 Right to Counsel 159 Adjudicative Review 162 Death Penalty 164 Conclusion 164 Chapter 6 Civil Law [Ling Bing) Introduction 169 The Concept of Civil Law 170 Historical Development 171 Basic Principles of Chinese Civil Law 173 Persons 176 Civil Legal Acts and Agency 188 Rights over Things 199 Obligations 211 Civil Liability 219

4 Chapter 7 Contract Law [Zhao Yuhong) Introduction 235 General Principles of Chinese Contract Law 238 Economic Contract Law 246 Foreign Economic Contract Law 254 Technology Contract Law 266 Conclusion Prospects for the New Uniform Contract Law 270 Chapter 8 Foreign Investment Law [John S. Mo) Legal Framework for Foreign Investment 275 Solely Foreign-Invested Enterprises 280 Sino-Foreign Joint Equity Ventures 286 Sino-Foreign Joint Co-operative Ventures 290 Operation of Foreign Companies and Foreign Representative Offices 295 Foreign Invested Enterprises and Chinese Company Law 297 Local Laws on Foreign Investment 298 Administration of Foreign Investment 299 Chinese Foreign Investment Law and the Agreement on TRIMS 300 Chapter 9 Family Law [Zhang Xianchu) Marriage Law 305 Procedural Conditions 307 Adoption Law 320 Succession Law 328 Chapter 10 Law of Business Organizations [Yu Guang Hua and Zhang Xianchu) Introduction 341 Sole Proprietorships 343 Partnerships 346 Companies 348 Other Forms of Business Organizations 359 Conclusions 364 XI

5 Chapter 11 Alternative Dispute Resolution [John S. Mo) Introduction 367 Negotiation or Consultation 368 Mediation or Conciliation 370 Arbitration 382 Chapter 12 Law of Civil Procedure [Zhang Xianchu) Introduction 409 General Provisions 410 Trial Procedures 421 Procedure of Execution 431 Special Procedures Applicable to Civil Cases Involving Foreign Interests 433 Chapter 13 Intellectual Property Law [Bryan Bachner) Introduction 439 Copyright Protection 440 Patent Law 448 Trademark Law 450 Chapter 14 Labour Law [Lin Feng) Introduction 457 The Historical Development of Labour Legislation in China 458 The Main Contents of Labour Legislation 460 Conclusion 486 Chapter 15 Laws on the Financial System [Stephen Foo) Introduction 489 The State Council's Decision to Reform the Financial Sector in Banking Reforms 490 xii

6 Law on Negotiable Instruments 508 Conclusion 517 Chapter 16 Environmental Law [Bryan Bachner and Wang Xi) Introduction 523 Institutional Structure 524 Environmental Law and Policy 526 Chapter 17 Land Law [Priscilla M.F. Leung) Evolution of Land Prescriptions in China 541 Land-use Rights under Chinese Law 544 Legal Grounds for Transfer of Land Use Right 548 Presale of Commercial Houses 558 Conclusion 561 Appendix Index 569 xni