The NPC, the highest organ of state power in the PRC, consists of deputies elected by all the provinces, autonomous regions, municipalities directly under the Central Government, special administrative regions and the armed forces. It exercises legislative power and makes decisions on important issues of national political life. Its main functions and powers include: amending the Constitution and supervising the implementation of the Constitution; enacting and amending basic laws governing criminal offences, civil affairs, state organs and other matters; examining and approving national economic and social development plans and reports on their implementation; examining and approving state budgets and reports on their implementation; approving the setup of provinces, autonomous regions and municipalities directly under the Central Government and deciding the founding and the systems of the special administrative regions; making decisions on matters of war and peace; electing and choosing the leadership of the highest organs of state, i.e., electing the members of the Standing Committee of the NPC, the state president and vice-president, deciding on the premier and other members of the State Council, and electing the chairman and other members of the Central Military Commission, the president of the Supreme People's Court and the procurator-general of the Supreme People's Procuratorate. The NPC has the power to recall any of the above mentioned.

The NPC is elected for a term of five years and usually meets once a year. When the NPC is not in session its Standing Committee exercises the highest state power. The NPC Standing Committee is composed of a chairman, vice-chairmen, a secretary-general and other members. The current Chairman of the NPC Standing Committee is Wu Bangguo.