China
Laws on Paper vs. Law in Practice
Stanley Lubman, a long-time specialist on Chinese law, is a Distinguished Lecturer in Residence at the University of California, Berkeley, School of Law and is the author of “Bird in a Cage: Legal Reform in China After Mao,” (Stanford University Press, 1999). China has enacted 240 laws, 706 administrative regulations, and over 8,600 local regulations since August 2011, according to the latest official government review of China’s legal system. But what do these add up to in practice? A white paper issued by the State Council on last month pays too much attention to laws on paper, while slighting meaningful discussion of how the legal system actually works—or doesn’t. Tracing legislation since the People’s Republic was established, especially since 1978, the State Council’s lengthy review does reflect the extraordinary progress of post-Mao China. It cites successive Constitutions and important laws among the legislative flood that within the short span of 30 years has produced the framework for the “socialist market economy” and all the branches of the modern Chinese state. The document celebrates the creation of a ”socialist system of laws with Chinese characteristics,” which is hailed as having established the “legal foundation for economic, political, cultural and social development.” Knowledgeable observers will have difficulty recognizing some aspects of the system that is described. For example, the white paper claims that China has developed “a comparatively complete legal system to protect human rights” – a statement contradicted by the country’s continuing repression of dissent and heightened censorship of the media, and by an ongoing assault on lawyers who lawfully assert their clients’ rights. Rather than dissecting obviously questionable claims, however, a hard look at what the document omits yields useful insight into China’s legal system. One message that is conspicuously muted is the need to resist interference with the independence of decision-making by the courts and procuracy. The white paper states that the courts and procuracy exercise their power “independently,” which is flatly not the case. An editorial published in the state-run China Daily after the white paper was issued shares the celebratory tone of the document, but adds a note of caution: ….just as the white paper has observed, having laws alone does not mean rule of law. More needs to be done in order to add teeth to our laws. The judiciary must be divested from departmental and local interests. And those in positions of power, no matter institutions or individuals, must set the right example. None other than Wen Jiabao, China’s Premier, has called for an independent judiciary in stronger language than is used in the latest document. In an interview at the World Economic Forum in Geneva in September of this year, Premier Wen said: “We need to uphold judicial justice. Procuratorial and judicial authorities should keep their due independence and be free from interference by any administrative organ, social group or individual.” In a speech at the same conference, Wen elaborated further on the point. “The most important mission of a ruling party is to abide by and act in strict accordance with the Constitution and the laws,” he said. “The Party should not replace the government in governance, and problems of absolute power and overconcentration of power should be redressed.” This last statement was interpreted by one knowledgeable foreign observer, Elizabeth Economy, as meaning that “the Party does not act according to the Constitution; and the Party abuses its power.” The white paper also underemphasizes the endemic instances of poor law enforcement or nonenforcement of the very laws whose existence it celebrates, though it does acknowledge the issue: The vitality of laws lies in their enforcement. …Now, the problem of ensuring that laws are observed and strictly enforced and that lawbreakers are prosecuted has become more pronounced and pressing. Therefore, China will take active and effective steps to guarantee the effective enforcement of the Constitution and laws, and accelerate the advance of the rule of law and the building of a socialist country under the rule of law. One example of this problem appeared in a report on food safety in the China Daily the day before the white paper was published. The State Council cited the Food Safety Law as an example of laws enacted “to protect the people’s health and safety,” but the China Daily article, consistent with other reports of poor product safety that appear almost daily in the Chinese media, told of farmers adding a harmful chemical to food given to sheep. The report went on to quote a researcher at the China Animal Agricultural Association as saying that local officials “always try to conceal their malpractice when such food safety issues are exposed because it is their dereliction that partly caused such problems.” Conspicuously absent from the white paper is any discussion of conflicts between laws and the policies that force local governments to chose between them. For example, on the day the white paper was published, the China Daily carried a story about pressures on to “drive up” local GDP. It said that local governments may “gobble up land for economic development” resulting in “illegal land use” that “may become rampant.” Examples included “illegally permitting projects like golf courses, railways and industrial parks to attract investment.” (In 2004, the State Council issued a notice to suspend construction of new golf courses, but since then more than 400 golf courses have been constructed across the country.) The white paper is not completely devoid of comments on the relation between law and society, acknowledging in a passage near the bottom that law must evolve: Social practice is the foundation of laws, and laws encapsulate practical experience. Social practice is endless, and legislative work should also constantly move forward with the times. Building socialism with Chinese characteristics is a long-term historic task. Improving the socialist system of laws with Chinese characteristics is also a long-term and arduous historic task, and it must advance in tandem with the practice of socialism with Chinese characteristics. By preceding the change of leadership next year, this document could mark a pause in legislative activity. Since the next leaders have not yet been officially chosen, their agenda is unknown. Given the problems unmentioned in the white paper that have been noted here, more attention should be placed on how laws are implemented as on what they say. What is necessary – someday– is a shift from using law as a political tool to promoting it as a force in Chinese society more distinct from Party policy. That, however, depends on the leadership’s willingness to endow laws with greater significance than they have today. The task is challenging, but vital for China’s governance.
Stanley Lubman, a long-time specialist on Chinese law, is a Distinguished Lecturer in Residence at the University of California, Berkeley, School of Law and is the author of “Bird in a Cage: Legal Reform in China After Mao,” (Stanford University Press, 1999). China has enacted 240 laws, 706 administrative regulations, and over 8,600 local regulations since August 2011, according to the latest official government review of China’s legal system. But what do these add up to in practice? A white paper issued by the State Council on last month pays too much attention to laws on paper, while slighting meaningful discussion of how the legal system actually works—or doesn’t. Tracing legislation since the People’s Republic was established, especially since 1978, the State Council’s lengthy review does reflect the extraordinary progress of post-Mao China. It cites successive Constitutions and important laws among the legislative flood that within the short span of 30 years has produced the framework for the “socialist market economy” and all the branches of the modern Chinese state. The document celebrates the creation of a ”socialist system of laws with Chinese characteristics,” which is hailed as having established the “legal foundation for economic, political, cultural and social development.” Knowledgeable observers will have difficulty recognizing some aspects of the system that is described. For example, the white paper claims that China has developed “a comparatively complete legal system to protect human rights” – a statement contradicted by the country’s continuing repression of dissent and heightened censorship of the media, and by an ongoing assault on lawyers who lawfully assert their clients’ rights. Rather than dissecting obviously questionable claims, however, a hard look at what the document omits yields useful insight into China’s legal system. One message that is conspicuously muted is the need to resist interference with the independence of decision-making by the courts and procuracy. The white paper states that the courts and procuracy exercise their power “independently,” which is flatly not the case. An editorial published in the state-run China Daily after the white paper was issued shares the celebratory tone of the document, but adds a note of caution: ….just as the white paper has observed, having laws alone does not mean rule of law. More needs to be done in order to add teeth to our laws. The judiciary must be divested from departmental and local interests. And those in positions of power, no matter institutions or individuals, must set the right example. None other than Wen Jiabao, China’s Premier, has called for an independent judiciary in stronger language than is used in the latest document. In an interview at the World Economic Forum in Geneva in September of this year, Premier Wen said: “We need to uphold judicial justice. Procuratorial and judicial authorities should keep their due independence and be free from interference by any administrative organ, social group or individual.” In a speech at the same conference, Wen elaborated further on the point. “The most important mission of a ruling party is to abide by and act in strict accordance with the Constitution and the laws,” he said. “The Party should not replace the government in governance, and problems of absolute power and overconcentration of power should be redressed.” This last statement was interpreted by one knowledgeable foreign observer, Elizabeth Economy, as meaning that “the Party does not act according to the Constitution; and the Party abuses its power.” The white paper also underemphasizes the endemic instances of poor law enforcement or nonenforcement of the very laws whose existence it celebrates, though it does acknowledge the issue: The vitality of laws lies in their enforcement. …Now, the problem of ensuring that laws are observed and strictly enforced and that lawbreakers are prosecuted has become more pronounced and pressing. Therefore, China will take active and effective steps to guarantee the effective enforcement of the Constitution and laws, and accelerate the advance of the rule of law and the building of a socialist country under the rule of law. One example of this problem appeared in a report on food safety in the China Daily the day before the white paper was published. The State Council cited the Food Safety Law as an example of laws enacted “to protect the people’s health and safety,” but the China Daily article, consistent with other reports of poor product safety that appear almost daily in the Chinese media, told of farmers adding a harmful chemical to food given to sheep. The report went on to quote a researcher at the China Animal Agricultural Association as saying that local officials “always try to conceal their malpractice when such food safety issues are exposed because it is their dereliction that partly caused such problems.” Conspicuously absent from the white paper is any discussion of conflicts between laws and the policies that force local governments to chose between them. For example, on the day the white paper was published, the China Daily carried a story about pressures on to “drive up” local GDP. It said that local governments may “gobble up land for economic development” resulting in “illegal land use” that “may become rampant.” Examples included “illegally permitting projects like golf courses, railways and industrial parks to attract investment.” (In 2004, the State Council issued a notice to suspend construction of new golf courses, but since then more than 400 golf courses have been constructed across the country.) The white paper is not completely devoid of comments on the relation between law and society, acknowledging in a passage near the bottom that law must evolve: Social practice is the foundation of laws, and laws encapsulate practical experience. Social practice is endless, and legislative work should also constantly move forward with the times. Building socialism with Chinese characteristics is a long-term historic task. Improving the socialist system of laws with Chinese characteristics is also a long-term and arduous historic task, and it must advance in tandem with the practice of socialism with Chinese characteristics. By preceding the change of leadership next year, this document could mark a pause in legislative activity. Since the next leaders have not yet been officially chosen, their agenda is unknown. Given the problems unmentioned in the white paper that have been noted here, more attention should be placed on how laws are implemented as on what they say. What is necessary – someday– is a shift from using law as a political tool to promoting it as a force in Chinese society more distinct from Party policy. That, however, depends on the leadership’s willingness to endow laws with greater significance than they have today. The task is challenging, but vital for China’s governance.
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Laws on Paper vs. Law in Practice
China
Foreign Tourist Groups on Cruise Ships Fully Permitted Visa-Free Entry in China
China will allow visa-free entry for foreign tourist groups arriving by cruise ship at 13 ports along the coast, starting May 15, 2024. Visitors must stay with the same ship and in permitted areas for up to 15 days. This policy aims to boost tourism and facilitate high-quality development in the cruise industry.
China’s immigration agency announced that it will grant a visa-free policy for foreign tourist groups to enter China by cruise at all cruise ports along the coast of China, starting May 15, 2024. The tourist group must remain with the same cruise ship until its next port of call and stay within permitted areas for no more than 15 days.
Effective May 15, 2024, the National Immigration Administration (NIA) has officially implemented a visa-free policy for foreign tourist groups entering China via cruise ships. This progressive move aims to enhance personnel exchanges and foster cooperation between China and other nations, furthering the country’s commitment to high-level openness.
Under this policy, foreign tourist groups, comprising two or more individuals, who travel by cruise ship and are organized by Chinese domestic travel agencies, can now enjoy visa-free entry as a cohesive group at cruise ports in 13 cities along the Chinese coast.
The tourist group must remain with the same cruise ship until its next port of call and stay within China for no more than 15 days. The eligible areas for this policy are coastal provinces (autonomous regions and municipalities) and Beijing.
Furthermore, to support cruise tourism development, seven additional cruise ports—Dalian, Lianyungang, Wenzhou, Zhoushan, Guangzhou, Shenzhen, and Beihai—have been included as applicable ports for visa-free transit.
The recent implementation of the visa-free policy for foreign tourist groups entering China via cruise ships is poised to have several significant effects. The policy will provide crucial support for the cruise economy and the overall cruise industry. By facilitating smoother travel for foreign tourist groups, it acts as a catalyst for high-quality development in this sector.
Additionally, under this policy, international cruise companies can strategically plan their global routes by designating Chinese port cities, such as Shanghai, Xiamen, and Shenzhen, as docking destinations. This move is expected to attract more cruise ships to Chinese ports, ultimately bringing in a larger number of international visitors to the Chinese market.
This article is republished from China Briefing. Read the rest of the original article.
China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.
China
China’s New Tariff Law: Streamlining and Standardizing Current Tariff Regulations
China’s new Tariff Law consolidates import and export duties, clarifies rules for imposing counter-tariffs, and sets a December 1, 2024 effective date. It codifies existing practices on cross-border e-commerce and rules on the origin of goods into law, impacting trade relations.
China’s new Tariff Law consolidates rules on import and export duties that were previously implemented via several legal documents and makes important clarifications and additions to prior regulations. Among other changes, it stipulates provisions for the Chinese government to impose counter-tariffs on imported goods, codifying these powers into law for the first time. We outline all the notable updates to the China Tariff Law and discuss the implications for the country’ current trade relations.
On April 26, 2024, the National People’s Congress (NPC), China’s legislature, adopted the Tariff Law of the People’s Republic of China (the “Tariff Law”) after several rounds of revisions.
The new Tariff Law will replace the Import and Export Tariff Regulations of the People’s Republic of China, which fall under the purview of the State Council, and adopts many of its provisions.
Previously, Chinese law had not stipulated legislative powers to implement countervailing tariffs, although China was nonetheless able to impose counter-tariffs on trade partners through other means.
China’s new Tariff Law comes into effect on December 1, 2024.
China’s Tariff Law elevates several existing provisions and practices to the level of law. For instance, Article 3 of the Tariff Law clarifies the obligations of cross-border e-commerce platforms for tariff withholding and implementing consolidated taxation.
The Tariff Law also solidifies the rules and regulations on the origin of goods, stipulating that the application of tariff rates shall comply with the corresponding rules of origin. Although this has been previously implemented in practice, it is the first time this has been codified into law.
This article is republished from China Briefing. Read the rest of the original article.
China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.
China
Outlook on Bilateral Trade and Investment between China and United Arab Emirates (UAE)
The UAE and China have a strong partnership, with the UAE being China’s top trade partner in the Arab world. Both countries collaborate on various sectors like logistics and technology, showcasing mutual commitment to economic growth and global cooperation. High-level trade and investments continue to drive their relationship.
The UAE and China share a robust partnership integral to both countries’ development and foreign policy goals, exemplifying a model of collaboration. Bilateral trade thrives, with the UAE as China’s top trade partner in the Arab world, while investments span key sectors like logistics and technology. This comprehensive strategic partnership continues to evolve, showcasing mutual commitment to economic growth and global cooperation.
The United Arab Emirates (UAE) holds a significant position in China’s trade and commercial connections within the Middle East, particularly in the Arab Gulf region. This partnership is integral to China’s broader strategic initiatives, including the Belt and Road Initiative (BRI), which the UAE actively supports.
Additionally, the UAE plays a crucial role in advancing China’s foreign policy objectives, such as enhancing South-South cooperation, particularly in technical collaboration among developing nations and the Global South in areas like resources and technology.
In this article, we delve into the dynamics of bilateral trade and investment between the UAE and China, exploring the key factors driving their economic relationship and the opportunities it presents for mutual growth and prosperity.
China and the UAE first established their diplomatic relations in 1984. While China has an embassy in Abu Dhabi and a consulate general in Dubai, the UAE has a consulate general in Hong Kong and an embassy in Beijing. China and the UAE have long been close partners, collaborating extensively on economic, political, and cultural fronts.
In 2018, Chinese President Xi Jinping went on a state visit to the UAE, making history as the first Chinese head of state to visit the country in the previous 29 years. The visit was instrumental in lifting bilateral relations to a ‘comprehensive strategic partnership’.
High-level trade has always been the foundation of bilateral ties. Bilateral commerce between China and the UAE reached new heights in 2021, surpassing US$75.6 billion. Additionally, as of 2022, about 6,000 Chinese businesses operate in the UAE, with a sizable Chinese population working primarily in the infrastructure and energy sectors. The UAE is also China’s second-largest economic partner in the Middle East, after Saudi Arabia.
This article is republished from China Briefing. Read the rest of the original article.
China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.
- Foreign Tourist Groups on Cruise Ships Fully Permitted Visa-Free Entry in China
- China’s New Tariff Law: Streamlining and Standardizing Current Tariff Regulations
- Outlook on Bilateral Trade and Investment between China and United Arab Emirates (UAE)
- 2024 Tax Incentives for Manufacturing Companies in China
- Exploring the Revamped China Certified Emission Reduction (CCER) Program: Potential Benefits for International Businesses
- China Implements New Policies to Boost Foreign Investment in Science and Technology Companies
