Chapter One. Introduction 1
A. Understanding Modern China in its Historical Context 1
1. The Underpinnings of Modern China and its Legal System 3
2. China's Twentieth Century Journey to Modernity 9
3. The People's Republic of China 14
4. Lessons From the Cultural Revolution and Tiananmen Square 18
5. China's Economy, 1949-78 20
a. The Collectivization of Agriculture 22
b. Industry and The State Enterprise System 22
c. Social Welfare Functions of SOEs 25
6. China's Refbrms, 1978 26
a. Reforms in the Agricultural Sector 28
b. Reforms in the State Sector 29
7. China's Economy since 1978 32
a. The Role of Foreign Investment in China's Development 33
b. Standard of Living 35
8. Major Themes From China's Journey to Modernity 36
Chapter Two. The History of Law in Imperial and Modern China 39
A. Society, Morality, and Law in Imperial China 40
1. The Role of Law in Imperial China 45
a. Law and Divine Authority 45
b. Individual Rights 46
c. Equality Before the Law 47
d. Law as Distinguished from Morality 48
e. Separation of Powers and Judicial Independence 49
f. Lack of a Developed Civil and Commercial Law 50
g. The Legal Profession in Imperial China 53
B. Law in Modern China, 1912-1978 53
1. The Legal System after 1978 56
a. Law as a Lesson from the Cultural Revolution 57
b. Law and Economic Development 59
c. The Role of Law at this Stage in China's History 61
Chapter Three. Constitution, State Structure, and Human Rights 67
A. The Role of the Constitution in Nation States 68
B. The Nature of Constitutions in the PRC 70
C. A Historical Survey of Constitutions in the PRC 71
D. Basic Features of the 1982 Constitution 75
1. The State Structure 79
a. Levels of the State 81
(1) Local Levels 82
(2) Relationship of the Central and Local Level Authorities 86
b. The National People's Congress 87
c. The NPC Standing Committee 91
d. Powers of the NPC Standing Committee 95
e. The State Council 96
f. President of the PRC 101
g. The Central Military Commission 103
2. Human Rights 105
3. Constitutional Rights 109
E. The Constitution and the State 113
Chapter Four. The Communist Party of China 115
A. The Role of the CPC in Chinese Society 116
1. History of the CPC 118
2. Other Political Parties 120
3. The Structure of the CPC 122
4. Lower Level CPC Organizations 127
5. Party Control and the Nomenklatura System 128
6. Party Control and the Question of Legitimacy 131
7. Ideology Campaigns 135
a. Purposes Served by Ideology Campaigns 138
b. Ideology and the Party's Authority 138
8. De Jure and De Facto Government 140
Chapter Five. Legislative Authority and Legal Interpretation 142
A. Legislative Authority in the PRC Legal System 142
B. Legislative Organs 145
1. Legislative Process of the National People's Congress 157
2. Legislative Process of the NPC Standing Committee 160
3. Legislative Process of The State Council 162
4. Legislation at Local Levels 165
5. International Law as a Source of Law 167
C. Legal Interpretation 168
1. China's System of Legal Interpretation 170
D. The Role of the Communist Party in LawMaking 178
E. Issues With the Current Legislative System 184
1. Unclear Boundaries of Authority 185
2. Acting Without a Clear Basis of Authority 187
3. Competing and Conflicting Norms 189
4. Legal Norms and Party Documents 190
Chapter Six. Courts and Proeuratorates 192
A. The Role of the Courts 195
1. Party Influence and the Courts 197
2. The Structure of the Court System 199
3. Court Personnel 202
4. Jurisdiction of the People's Courts 205
a. Basic People's Courts 205
b. Intermediate People's Courts 206
c. High People's Courts 207
d. The Supreme People's Court 208
5. The Process of the Courts in Deciding Cases 209
6. Law Reports 211
7. Reopening Final Judgments by Adjudication Supervision 213
B. The Role of the Procuratorates 215
C. Issues With the Current Judicial System 217
1. Judicial Independence and Related Issues 217
2. Local Protectionism and Related Issues 221
3. Enforcement of Judgments and Related Issues 223
Chapter Seven. Lawyers and the Legal Profession 225
A. Lawyers in the PRC, 1949-1982 226
B. Lawyers in the PRC, 1982-1996 227
C. The Lawyers Law, 1996 230
1. Regulation and Disciplining of Lawyers 233
2. Law Firms 234
a. Compensation and Billing Rates in PRC Law Firms 236
D. PRC Lawyers With Foreign Degrees 239
E. Foreign Law Firms and Foreign Lawyers 242
F. Notaries 244
G. Current Issues With the Legal Profession 246
1. Independence of Lawyers 246
2. Professional Competence 249
3. Professional Ethics 252
Chapter Eight. Procedural Law 255
A. The Criminal Procedure Law 257
1. The Criminal Process in the PRC 259
a. The Role of the Public Security Organs 259
b. Detention 261
c. Custody After Arrest 262
d. Other Changes in the 1996 Revision of the CPL Affecting the Police 263
e. Public Perception of the Public Security Organs 265
f. The Decision to Prosecute 267
g. Limits on Proseeutorial Discretion 269
h. Adjudication 270
i. Procedure on Appeal 273
j. Adjudication Supervision in Criminal Cases 274
k. Presumption of Innocence 275
l. Right to Counsel and Role of Defense Lawyers 276
m. Future Directions for the Criminal Justice Process in the PRC 280
B. The Law of Civil Procedure 280
1. Basic Structure of the Law of Civil Procedure 281
a. Initiating the Lawsuit 282
b. Pre-Trial Relief and Related Measures 284
c. Trial Procedure 286
d. Appeals and Adjudication Supervision 288
e. Enforcement of Judgments 289
f. Cases Involving Foreign Elements 290
C. The Law of Administrative Procedure 293
1. The Administrative Litigation Law and the Administrative Review Regulations 293
2. The State Compensation Law 298
3. The Administrative Penalties Law 300
D. Mediation and Arbitration 304
E. PRC Procedural Law and International Standards 308
Chapter Nine. Substantive Law 310
A. Criminal Law 311
1. Less Overtly Political 312
2. Equality Before the Law 313
3. Proportionality 314
4. Abolition of Crimes by Analogy 315
5. Specific Offenses and New Offenses 317
a. Crimes of Counterrevolution and Crimes Against the State 317
b. Other Categories of Crime 319
c. Elements of a Crime 321
d. Punishments 323
B. Civil and Economic Law 324
1. The General Principles of Civil Law 327
a. The Subjects of Civil Law 327
b. Civil Rights 329
(1) Property Rights 330
(2) Creditors' Rights 333
(3) Personal Rights 334
c. Civil Obligations and Liabilities 335
d. Limitations and Other Issues 336
2. Other Major Economic and Civil Laws 337
a. Contract Law 337
b. The Unified Contract Law 341
(1) Salient Provisions and Structure of the UCL 344
(2) Contract Formation 345
(3) Validity of Contracts 346
(4) Performance, Modification, and Termination 347
(5) Liability for Breach 349
c. The Company Law 350
(1) Business Forms under the Company Law 353
(2) Limited Liability and the Legal Representative 354
(3) Foreign Investment Enterprises and the Company Law 355
(4) Reform Objectives of the Company Law 356
d. Family Law 358
C. Administrative Law 363
Chapter Ten. Foreign Investment 368
A. Forms of Foreign Direct Investment 368
1. The Joint Venture 370
a. Equity and Contractual Joint Ventures 371
b. Establishing the Joint Venture 373
(1) The Approval Process and Approval Authorities 376
c. Management Structure of the Joint Venture 384
(1) Management Control Issues 385
2. The Wholly Foreign-Owned Enterprise 388
a. Establishing the WFOE 389
(1) The Approval Process and Approval Authorities 391
b. Conversion and Reorganization of a Joint Venture into a WFOE 395
3. The Holding Company 396
a. Prerequisites for Application 398
b. The Approval Process and Approval Authorities 400
c. Permitted Scope of Business 401
(1) The Holding Company as Investor in FIEs 403
(2) The Holding Company as a Management Center 405
d. Current Issues with the Holding Company 407
e. The China Group or Conglomerate 409
Chapter Eleven. Intellectual Property 410
A. Intellectual Property in Chinese History 410
B. Intellectual Property in Modern China 412
1. US-China Bilateral Negotiations 413
2. China's Current Legal Framework 416
a. Trademark Legislation 418
(1) Eligibility for Trademark Protection 418
(2) Registration System 419
(3) Trademark Infringement 422
b. Patent Legislation 424
(1) Eligibility for Patent 424
(2) Application Process 425
(3) Patent Infringement 427
c. Copyright Legislation 428
(1) Copyright Eligibility and Rights 428
(2) Infringement 430
(3) Computer Software Legislation 431
d. Trade Secrets 433
C. Problems of Commercial Piracy 433
1. Copyright Piracy 434
2. Trademark Counterfeiting 435
3. Barriers to Effective Enforcement Against Counterfeiting 438
a. Local Protectionism 439
b. Lack of Adequate Sanctions and Criminal Prosecutions 442
c. Problems in the Private Enforcement Industry 445
4. The Effect of TRIPS on Commercial Piracy in China 449
5. Lobbying by Brand Owners 450
Chapter Twelve. Reference Tools for Further Research 452
A. Internet Resources and Electronic Databases 452
B. Treatises, Looseleaf Reference Services, and Books 455
C. Journals and Periodicals 458
INDEX 461