PART Ⅰ OVERVIEW:PATTERNS OF CHANGE IN CHINA'S LEGAL SYSTEM AND SOCIO-ECONOMY 1
Table of Contents 1
1．The Legal System of China as of 1960:Background 1
Types of Legal System 1
Typology of Substantive Economic Laws 8
Legal Institutions and Process 11
Legal Profession 19
Sources of Law 21
Public Attitude Towards the Legal System 22
2．The Major Changes in China's Legal System 1978—1995 22
Types of Legal System 24
The Major Substantive Laws Affecting the Economy 25
A Quantitative Assessment for the General Patterns Between the Enactment of Laws and That of Policies 32
Legal Institutions and Process 33
Legal Profession 43
Sources of Law 47
Public Attitude Towards the Legal System 48
3．Chinese Economy in 1960,1978 and its Growth to 1995 50
Economic Situation Under the Central Planning System,1960—1978 51
Reform,Opening,and Growth During 1978—1995 59
4．The Relation of Changes in China's Legal System to Economic Development 82
PART Ⅱ BUSINESS GOVERNANCE AND CAPITAL FORMATION 88
1．The Relative Size of the Private Corporate Sector as Compared to the Un-incorporated(formal and informal)Private Sector and the State Enterprise Sector Correlates Positively with the Size and Complexity of the Economy 88
2．The Degree of Capital Formation in the Corporate Sector Changes in Relation to Changes in the Cost of Using the Corporate Form 95
3．The Relative Size of the State Enterprise Sector is Independent of the Availability of the Corporate Form,and the Number of Incorporated State Enterprises does not Correlate with Legal Changes that Lower the Cost of Establishing and Using the Corporate Form 114
4．The Liberalization of the Legal Framework for Raising Equity Finance Correlates Positively with Higher Growth Rates of the Corporate Sector 117
5．The Corporate Sector,Which is Organized as Joint Stock Companies Relative to Other Private Companies,Positively Correlates with the Degree of Shareholder Protection Offered by Law 131
6．The Growth of the Formal Private Sector Correlates Positively with the Deregulation of Real-estate Markets 135
PART Ⅲ THE RELATION BETWEEN CREDIT AND LAWS GOVERNING SECURITY INTEREST 135
1．The Level of Lending by Financial Intermediaries to Borrowers in the Private Sector Correlates Positively with the Availability of Security Interests Provided by Law 149
Security Law 149
Laws and Regulations Pertaining to Personal Guarantee 149
Acquisition of a Guarantee 150
Realization of Guarantee 151
Mortgage 153
Acquisition of Mortgage 155
Mortgage Registration Organizations 157
Pledging 158
Acquisition of a Pledge 159
2．Difficulties in Enforcing Security Interest Correlates Inversely with the Volume of Private Lending to the Private Sector 160
Enterprise Bankruptcy 160
Cost of the Availability of Security Interests Provided by Law 162
Evolution of the Legal System on the Implementation of Security Rights and its Present Situation 164
Creditor's Right for Applying for Bankruptcy 166
3．Lending Institutions with a Relatively High Proportion of Unsecured Loans,Perhaps due to High Relational Lending or State Mandated Lending,are more likely to Incur Serious Loan Losses than Banks with a High Proportion of Secured Lending 167
Shortage of Legal Regulations 167
Conflict Within Laws 168
Problems of Law Enforcement 169
Administrative Interference 170
Other Factors for Holding up the Circulation of Financial Credit Funds 172
PART Ⅳ THE SETTLING OF COMMERCIAL AND ADMINISTRATIVE DISPUTES 174
1．The Growing Division of Labor in Society will Enhance the Role of Formal Dispute Settlement Institutions with the Power to Enforce Commercial Disputes Among Previously Unrelated Parties 174
The Changes in the Division of Labor in China from 1978 to 1995 174
The Establishment and Tasks of Economic Judicial Organizations 181
Quantity and Types of Cases 182
Foreign Related and Taiwan,Macao and Hong Kong Related Economic Disputes 187
Establishment and Tasks for Tribunals of Trans-portation and Maritime Affairs 190
Establishment and Development of Economic and Trade Arbitration Boards 192
Types of Filed Cases 195
Seeking Professional Advice 196
Enforcement of Arbitration Rulings 196
Maritime Arbitration 196
Restructuring of Arbitration Commission 197
Mediations Institutions 199
2．With Economic Development,the Number of Legal Disputes over Tangible and Intangible Property Rights has Increased 199
Real Estate 199
Intellectual Property Rights(IPR) 201
3．Economic Development Correlates Positively with the Creation of Institutions or Procedures that Allow Private Parties Recourse to Independent Arbitrators Against Actions by the State that Affect the Legal Rights 206
Scope and Procedures of Administrative Litigation 210
Review Procedures 214
Judicial Review 215
Scope and Procedures for Arbitration Institutions 216
Legal Status of the Administrative Judges 216
Legal Requirements for Arbitrator 217