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Compiling a civil code suited to China’s socialist market economy and the interests of the people is vital for national prosperity and public well-being, and has been a long-cherished dream of generations. In 2014, during the Fourth Session of the 12th National People’s Congress, it was decided that a civil code would be compiled by 2020.
It was planned to be developed in two steps: fi rst, adopting basic principles for regulating civil activities, and then compiling fi ve individual books on property, contract, tort liability, marriage and inheritance.
The General Provisions of the Civil Law are the opening chapter of the civil code, and is to replace the General Principles of the Civil Law adopted in 1986 as the latter has become outdated. The General Provisions embody modern characteristics, China’s culture and foreign experiences.
The General Provisions, adopted at the Fifth Session of the 12th National People’s Congress on March 15, will take effect on October 1.
Reflecting Chinese character
The civil laws enacted before the founding of the People’s Republic of China in 1949 were infl uenced by German jurisprudence, and the infl uence persists. On the other hand, China is a socialist country, so its legal system after 1949 has been naturally affected by ideas on civil law from the former Soviet Union.
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Since the implementation of the reform and opening-up policy and the development of its socialist market economy, China has become more and more open. Its legal theories and practices have drawn extensively on the outstanding achievements of human civilization, and this is reflected in the General Provisions.
Meanwhile, as China’s international status rises, it has become increasingly more confident in its own system and culture. Its legislation, including civil laws, embodies Chinese characteristics, which has created a spillover effect. For instance, the General Principles of the Civil Law adopted in 1986 reflect distinct Chinese characteristics in its style and layout.
The General Principles clearly spelled out the basic civil law principles in one chapter and civil liabilities in another. This innovative practice has been commended by some foreign scholars and emulated by some countries.
The General Provisions also reflect China’s traditional cultural values, such as love, faith, justice and harmony; and social- ist core values, such as freedom, equality, justice, the rule of law and patriotism. For instance, it stipulates that those dishonoring heroes and martyrs or their portraits and affecting the public interest would bear civil liability. Keeping up with the times
The General Provisions have been drafted to reflect social development. While dropping outdated provisions in the General Principles, it has added provisions to emphasize environmental protection and equal protection of property rights.
The principle of paying an equivalent compensation has been omitted as it applies to commodity exchanges rather than civil activities. It was included in the General Principles because when it was drafted, property relations were put above personal relations. Thanks to social and economic development, civil laws are becoming more and more people-oriented and more important in regulating personal relations.
The statements that civil activities should follow state policies where there are no relevant provisions in the law and that civil activities shall not undermine state economic plans are also no longer included.
As the legal system improves, state policies are no more norms governing civil activities. Meanwhile, as the market economy develops, fewer national economic plans are mandatory, and they too are no more guidelines for civil activities.
The General Provisions add “a green principle,” that is, it stipulates that civil activities should be conducive to resource saving and ecological environment protection. It not only regulates relations between people, but also that between people and nature. This enshrines China’s traditional emphasis on harmony between human and nature, the green development concept promoted since the 18th National Congress of the Communist Party of China (CPC) and the international idea of sustainable development.
The General Provisions also uphold public ownership, the foundation of the socialist economy according to the Constitution, while offering equal protection to property rights. It also ensures that civil subjects can enjoy civil rights according to law.
Article 113 of the General Provisions stipulates that property rights of all civil subjects shall be protected equally. This is in line with the central leadership’s decision to improve property rights protection.
Civil rights protection
The General Provisions have enumerated various civil rights to highlight the importance given to respecting and protecting civil rights.
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It improves on the General Principles by stipulating, for the first time, that a natural person’s personal freedom and dignity are protected by law, and so are his or her personal rights arising from marriage and family relations. For the first time, it also clearly provides that a natural person enjoys the right to privacy, and his or her personal information is protected by law. Personal rights have been given a higher priority. Previously, they came after property rights, creditor’s rights and intellectual property rights. Now the order has been changed, indicating personal rights have greater importance.
The General Provisions have kept up with the Internet era by specifying protection of personal information, data and virtual property. This is a pioneering move in the world.
It specifically stipulates, “Any organization or individual needing to obtain others’ personal information shall do so in accordance with the law and ensure information security. No organization or individual may illegally collect, use, process or transmit personal information, or illegally sell, buy, provide or disclose others’personal information.”
Innovative classification
How to classify legal persons in the General Provisions was a subject of long debate.
In the traditional civil law system, legal persons are generally divided into corporations and foundations. However, such classification does not suit China’s national conditions. The General Provisions classify legal persons into three categories: for-profit, non-profit and special legal persons.
Special legal persons include government organizations, rural collective economic organizations, urban and rural cooperative economic organizations, and community-level self-governance organizations. This innovative classification echoes China’s practical needs.
Moreover, unincorporated organizations are listed as the third type of civil subjects, alongside natural persons and legal persons. According to the General Provisions, an unincorporated organization is not a legal person, but an organization that can engage in civil activities in its own name according to law. Unincorporated organizations include sole proprietorship enterprises, partnership enterprises and professional service organizations that do not have a legal personality.
Whether partnership organizations can be listed as civil subjects other than natural persons and legal persons has been debated in many countries. The General Provisions list unincorporated organizations in a separate chapter as a type of civil subject, which is a breakthrough in international civil law theories.
All in all, the General Provisions, keeping abreast of China’s current conditions and drawing upon historical and international experiences, mark a new milestone in civil law legislation.