Property Law of People’s Republic of China Approved by 5th Session of 10th NPC
The Property Law of People’s Republic of China was approved by the 5th session of the 10th National People’s Congress (NPC) on Mar. 16, 2007.
As a basic civil law dealing with the relationships of property, the Property Law regulates the civil relationships caused by the possession and the utilization of property. It is regarded that this law demonstrates China’s fundamental economic system accurately in an all-round way and “it protects the order of the socialist market economy”. The Law stipulates that “the property of the state, the collectives, the individuals and other obligees is protected by law, and no organizations or individuals may infringe upon it”.
The Property Law will come into effect on Oct. 1, 2007, according to which, China will consolidate and develop the public economy sectors, and encourage, support and guide the development of non-public sectors. Making a clear definition of state-owned property, the Law strengthens the protection of it from five aspects. In order to grant to farmers the guaranteed long-term land-use right, the Law stipulates that, at the end of renting-contract for farmland, grassland, and woodland, the contractor can have it renewed in accordance with the relevant regulations of the state.
The Property Law stipulates that the lawful property of individuals should be protected by law, and any illegal action of occupying, plundering or destroying it by any organization or individual is prohibited. According to WANG Zhaoguo, Vice Chairman of the Standing Committee of the NPC, it helps to inspire the people’s enthusiasm to create and accumulate wealth and facilitate the social harmony. As the expropriation of collective-owned land and the urban and rural housing involve the people’s immediate interests which are of the society’s concern, the Law stipulates the principles and the contents of compensation for expropriation.
The Property Law is considered to be significant for boosting the economic reforms and building a law-based country. It indicates that the socialist market economy is further completed and the political civilization advanced with a big stride in China.