The legal system of China
A civil-law system in structure β codes, no binding precedent, an inquisitorial-leaning procedure β operating under the constitutionally declared leading role of the Communist Party. The Civil Code, in force from 1 January 2021, was the first unified codification, consolidating contract, property, tort, marriage, succession and personality rights into seven books. The feature that most distinguishes the system from other civil-law jurisdictions is the allocation of interpretive authority: the Supreme People's Court issues judicial interpretations that bind lower courts and function as legislation in practice, while authority to interpret the Constitution itself belongs to the National People's Congress Standing Committee, not to any court.
Legal tradition
China belongs to the socialist civil law tradition. A civil-law system in structure β codes, no binding precedent, an inquisitorial-leaning procedure β operating under the constitutionally declared leading role of the Communist Party. The Civil Code, in force from 1 January 2021, was the first unified codification, consolidating contract, property, tort, marriage, succession and personality rights into seven books. The feature that most distinguishes the system from other civil-law jurisdictions is the allocation of interpretive authority: the Supreme People's Court issues judicial interpretations that bind lower courts and function as legislation in practice, while authority to interpret the Constitution itself belongs to the National People's Congress Standing Committee, not to any court.
How power is divided
Unitary, with a highly asymmetric structure: 23 provinces, five autonomous regions, four directly administered municipalities and two special administrative regions. Hong Kong and Macao operate under 'one country, two systems' with their own Basic Laws, their own courts of final appeal, and legal systems that remain common-law and Portuguese-derived civil-law respectively. Provincial people's congresses may enact local regulations that must not contravene national law.
Where law comes from
- The Constitution
- Supreme in form; enforced by the NPC Standing Committee rather than by courts.
- Laws (ζ³εΎ)
- Enacted by the NPC or its Standing Committee; the NPCSC does most of the legislating.
- Administrative regulations
- Issued by the State Council; rank below laws and above local rules.
- Judicial interpretations of the Supreme People's Court
- Binding on all lower courts and, in practice, the most important working source of private law.
- Guiding cases (ζε―Όζ§ζ‘δΎ)
- Selected by the SPC; lower courts must 'refer to' them, which is weaker than common-law binding precedent.
The legal profession
Lawyers are licensed under the Lawyers Law after passing the National Unified Legal Profession Qualification Examination, which since 2018 has also been the common entry route for judges, prosecutors and notaries. Firms are licensed and subject to annual inspection by provincial justice departments, and membership of the All China Lawyers Association is mandatory. A 2012 amendment to the Lawyers Law requires an oath that includes loyalty to the leadership of the Communist Party, and the annual licence renewal is the principal point of leverage over practitioners in politically sensitive work.
Law by topic in China
- Immigration & NationalityWork permits tiered A/B/C by a points scoreThe Exit and Entry Administration Law governs foreign nationals. Work permits are graded into three classes by a points system covering salary, education, age and Chinese-language ability, and the class determines how easily a permit is granted and renewed.
- Property & LandAll urban land is state-owned; buyers acquire time-limited use rightsPrivate ownership of land does not exist. Urban land belongs to the state and rural land to collectives. What is bought and sold is a granted land-use right, typically 70 years for residential use.
- Family LawA compulsory 30-day cooling-off period before divorce by agreementMarriage and divorce sit in Book Five of the Civil Code. The 2021 codification introduced a mandatory 30-day cooling-off period for uncontested divorce, after which the parties must actively confirm the application or it lapses.
- Business & CorporateUnified Civil Code contract rules plus a negative-list foreign investment regimeThe 2021 Civil Code absorbed the former Contract Law, and the 2020 Foreign Investment Law replaced case-by-case approval with a negative list: sectors off the list get the same treatment as domestic companies.
- Tax LawThe 183-day rule and a six-year grace period for foreign-sourced incomeIndividual income tax runs on progressive rates to 45 per cent. Residence turns on 183 days in a calendar year, and a six-year rule limits when a foreign resident's worldwide income becomes taxable.
- Civil ProcedureTwo instances, short limitation periods and a strong mediation preferenceThe Civil Procedure Law gives a two-instance system: a first-instance judgment may be appealed once, and the second-instance decision is final. The general limitation period is three years.
- Employment & LabourWritten contracts compulsory, with double wages as the sanctionThe Labour Contract Law requires a written contract within one month of starting work. Failure obliges the employer to pay double wages, and after a year without one the employee is treated as having an open-ended contract.
- Criminal LawProsecutorial approval of arrest, and a wide capital-offence listThe Criminal Law and Criminal Procedure Law govern. Formal arrest requires procuratorate approval, and the death penalty remains available for a broad range of offences including non-violent economic crimes.
- Constitutional LawParty leadership written into a constitution courts cannot enforceThe 1982 Constitution is formally supreme, but there is no judicial review: only the Standing Committee of the National People's Congress may rule on constitutionality. Courts cannot decline to apply a statute, so constitutional rights are not directly litigable.
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