China is busy drafting a law on tangible property rights to meet
the requirements of the market economy that the country is striving
to build.
It
was revealed by top legislator Li Peng over the weekend when the
lawmakers were lectured on the legal system of such rights.
The draft law was intended to complete the Chinese legal system of
property laws, better protect possessions of different ownership by
making a clear definition on them, and safeguard the trade security
and market order, said Li, chairman of the Ninth National People's
Congress Standing Committee.
Li
said the committee, China's top legislative body, which will end
its five-year term in March 2003, has enlisted the property rights
law among its legislative plan.
China has made a series of property laws including the General
Principles of Civil Law and laws on guarantees, land management,
grasslands, water, mineral resources, patents, trademarks and
copyright since it implemented its opening up and reform policies
two decades ago.
However, Li said a sound tangible property rights law is in urgent
need when current legislation can barely meet the increasing demand
of the market economy to guarantee a clear-cut property rights
division as well as smooth and safe transaction.
Li
urged the legislators to make the law mirror the real situation in
China and follow international standards at the same time so that
the nation can meet the challenges of entry to the World Trade
Organization.
He
also requested lawmakers consult more with legal experts to make
the law more practical and forward-looking.
The main purpose of the property rights law is to define and
specify rights of possession in China, according to Wang Liming, a
professor of civil law at Renmin University of China, who gave the
lecture last Friday.
Moreover, it is the basic rule for the regulation of a market
economy because the prerequisite for any transaction is the
ownership of property and the result of the transaction is the
shift of property rights, he added.
The lack of basic rules in tangible property rights has hampered
the functioning of current legislation such as the Contract Law and
the Guarantee Law, Wang said.
The law on tangible property rights is the core of a civil code
that Chinese legislators have been pursuing for more than two
decades.
It
is expected to encourage and stimulate people to create more wealth
for society by giving equal protection to property under different
ownership, Wang said.
(China
Daily 09/03/2001)