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Public Law of China’s State-Directed Economy

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Abstract

This chapter focuses on public law, explaining how the Chinese state relies on public legal arrangements to perform its triple role, especially its roles as a competitor and a regulator. As for its role as a competitor, relevant legal instruments grant SOEs and the competent authorities a series of privileges or public functions, such as entitlement over land and natural resources, in order to ensure their inherent strength in market competition. Regarding its role as a regulator, public law ensures the oversight by relevant authorities of the market and a certain degree of flexibility for those authorities to intervene in the market. However, this chapter points out that, in performing the roles of both a competitor and a regulator, the public functions and privileges of the state carry increasingly less weight because the economy is relying more on the market, rather than the administrative power of the state, in parallel with the gradually deepening economic reform.

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Notes

  1. 1.

    Estrin and Holmes (1982), pp. 1–10.

  2. 2.

    Constitution of the Fifth Republic (Adopted on 4 October 1958), Article 69.

  3. 3.

    Constitution (2004), Article 62(9).

  4. 4.

    Ibid, Article 89(5).

  5. 5.

    Hsu (1999), pp. 139–142.

  6. 6.

    For example, Article 99 of the Constitution (2004) stipulates that Local people’s congresses at various levels have the authority to approve the general plans within the scopes of their respective administrative areas.

  7. 7.

    Wang (2005), pp. 51–52.

  8. 8.

    Provisional Measures on National Economic Planning (Draft) (Adopted on 5 August 1953).

  9. 9.

    Law of the People’s Republic of China of Industrial Enterprises Owned by the Whole People (Adopted on 13 April 1988), Article 35.

  10. 10.

    Chapter 2, Sect. 2.1 of this book.

  11. 11.

    Decision (2013).

  12. 12.

    Liu (2014).

  13. 13.

    Howe et al. (2002), pp. 91–92.

  14. 14.

    Ibid.

  15. 15.

    Constitution (2004), Article 6 (1).

  16. 16.

    Ibid.

  17. 17.

    Ibid, Articles 7–8.

  18. 18.

    General Principles of the Civil Law of the People’s Republic of China (Adopted on 4 December 1986), Articles 73–74.

  19. 19.

    Property Law of the People’s Republic of China (Adopted on 16 March 2007), Article 45–69.

  20. 20.

    Sullivan and Sheffrin (2003), p. 272.

  21. 21.

    Gu et al. (2010), pp. 6–7.

  22. 22.

    Chen (2008).

  23. 23.

    Gu et al. (2010), pp. 343–350.

  24. 24.

    Ibid, p. 349.

  25. 25.

    Law of the People’s Republic of China on the State-Owned Assets of Enterprises (Adopted on 5 July 1994 and amended on 28 October 2008).

  26. 26.

    Qiye Guoyou Chanquan Jiaoyi Caozuo Guize (企业国有产权交易操作规则) [Rules on the Transaction and Operation of State-Owned Properties] (Adopted on 15 June 2009).

  27. 27.

    Interim Measures for the Administration of Overseas State-owned Property Rights of Central Enterprises (Adopted on 14 June 2011).

  28. 28.

    Decision (2013), para. II (6).

  29. 29.

    Scott and Marshall (2009).

  30. 30.

    Bishop (2009).

  31. 31.

    Decision (2013), para. II (6).

  32. 32.

    Wang (2001a), p. 89

  33. 33.

    Company Law (2014), Articles 23–31 and Articles 76–98.

  34. 34.

    Law of Industrial Enterprises Owned by the Whole People (1988), Articles 16–21.

  35. 35.

    Zanxing Guiding (1988).

  36. 36.

    Yu et al. (2014) pp. 60–61.

  37. 37.

    Company Law (2014), Article 67.

  38. 38.

    Ibid, Article 70.

  39. 39.

    Ibid, Article 66.

  40. 40.

    Ibid, Articles 67 and 70.

  41. 41.

    Ibid, Article 67.

  42. 42.

    Ran (2008), pp. 44–48.

  43. 43.

    State-Owned Assets Law (2008), Article 45.

  44. 44.

    Land Administrative Law of the People’s Republic of China (Adopted on 25 June 1986 and amended on 28 August 2004), Articles 43–58.

  45. 45.

    Enterprise Bankruptcy Law of the People’s Republic of China (Trial) (Adopted on 2 December 1986), Article 2.

  46. 46.

    Zhang (2006).

  47. 47.

    Enterprise Bankruptcy Law of the People’s Republic of China (Adopted on 27 August 2006).

  48. 48.

    Ibid, Article 1.

  49. 49.

    Ibid, Article 2.

  50. 50.

    Ibid, Articles 133–134.

  51. 51.

    State-Owned Assets Law (2008), Article 53.

  52. 52.

    Guanyu Jinxing Guoyou Qiye Zhengce Xing Guanbi Pochan Gongzuo Zongjie de Tongzhi (关于进行国有企业政策性关闭破产工作总结的通知) [Notice on the Work Summary for State-Owned Enterprise Policy of Closure and Bankruptcy] (Adopted on 29 December 2009).

  53. 53.

    Chapter 4, Sect. 4.2 of this book.

  54. 54.

    Regulation on the Administration of Publications (Adopte on 25 December 2001 and amended on 6 February 2016), Article 41.

  55. 55.

    Foreign Trade Law of the People’s Republic of China (Adopted on 12 May 1994 and amended on 6 April 2004), Article 19.

  56. 56.

    Publications Regulation (2016).

  57. 57.

    Regulation on the Administration of Publications (Adopted on 25 December 2001).

  58. 58.

    Ibid, Article 42(2).

  59. 59.

    Publications Regulation (2016), Article 2.

  60. 60.

    Ibid, Article 41.

  61. 61.

    Measures for the Administration of Import of Audio and Video Recordings (Adopted on 17 March 2011).

  62. 62.

    Ibid, Article 8.

  63. 63.

    Publications Regulation (2016), Articles 42–43. See also Measures (2011), Articles 9–10.

  64. 64.

    Publications Regulation (2016), Article 42(3).

  65. 65.

    Ibid, Article 45.

  66. 66.

    Ibid, Article 6.

  67. 67.

    See Peerenboom (2002). Se3 also Pauwelyn (2010), pp. 139–140.

  68. 68.

    Footer and Forbes (2012), pp. 314–315.

  69. 69.

    China—Measures Affecting Trading Rights and Distribution Services for Certain Publications and Audiovisual Entertainment Products—Report of the Appellate Body (21 December 2009) WT/DS363/AB/R, para. 2.3, Section II (B)(1).

  70. 70.

    Ibid, Section VI (C). also General Agreement on Tariffs and Trade (15 April 1994).

  71. 71.

    Footer and Forbes (2012).

  72. 72.

    Publications Regulation (2016), Article 4.

  73. 73.

    Yu (2010), pp. 20–27.

  74. 74.

    See, e.g., Integrated Reform Plan for Promoting Ecological Progress (Adopted on 21 September 2015) Section 1.

  75. 75.

    Administrative License Law of the People’s Republic of China (Adopted on 27 August 2003), Article 12(2).

  76. 76.

    Mineral Resources Law of the People’s Republic of China (Adopted on 03-19-1986 and amended on 29 August 1996), Articles 16–18.

  77. 77.

    Foreign Trade Law (2004), Article 14.

  78. 78.

    Ibid, Articles 16(1)–16(2).

  79. 79.

    Ibid, Article 18.

  80. 80.

    China—Measures Related to the Exportation of Rare Earths, Tungsten and Molybdenum—Report of the Appellate Body (7 August 2014) WT/DS431/ABR; WT/DS432/AB/R; WT/DS433/AB/R.

  81. 81.

    Ibid.

  82. 82.

    Foster (2011).

  83. 83.

    China—Measures Related to the Exportation of Various Raw Materials—Report of the Appellate Body (30 January 2012) WT/DS394/AB/R; WT/DS395/AB/R; WT/DS398/AB/R.

  84. 84.

    China—Rare Earths—AB Report.

  85. 85.

    Ibid, paras. 5.62 and 5.63.

  86. 86.

    Ibid, para. 5.252.

  87. 87.

    Wang (2014).

  88. 88.

    Fox, Eric, Introduction to The Chinese Banking System. Investopedia. http://www.investopedia.com/articles/economics/11/chinese-banking-system.asp. Accessed 1 September 2018.

  89. 89.

    Ibid.

  90. 90.

    Martin (2012), p. 5.

  91. 91.

    Ibid, p. 2.

  92. 92.

    Ibid, p. 3.

  93. 93.

    CBRC (2015) Zhongguo YInhangye Jiangdu Guanli Weiyuanhui 2015 Nianbao (中国银行业监督管理委员会2015年报) [China Banking Regulatory Commission Annual Report 2015], Part 1, Section 2(1).

  94. 94.

    UnionPay Overview. UnionPay. http://en.unionpay.com/comInstr/aboutUs/file_4912292.html. Accessed 1 September 2018.

  95. 95.

    Ibid.

  96. 96.

    UnionPay Introduction to Membership Scheme. UnionPay International. http://www.unionpayintl.com/en/enaboutUpi/enpartners/index.shtml. Accessed 1 September 2018.

  97. 97.

    Anti-Monopoly Law of the People’s Republic of China (Adopted on 30 August 2007).

  98. 98.

    Ibid, Article 7.

  99. 99.

    Opinions on Implementation of the Work in Bank Card Interoperability (Yin Fa [2001] No 37), Article 2(1)(1).

  100. 100.

    Ibid, Article 1(2).

  101. 101.

    Guiding Opinions of the People’s Bank of China on Regulating and Promoting the Development of Bank Card Acceptance Market (Yin Fa [2005] 153), Article 2(2).

  102. 102.

    China—Certain Measures Affecting Electronic Payment Services—Report of the Panel (16 July 2012) WT/DS413/R.

  103. 103.

    Ibid, para. 8.1. also General Agreement on Trade in Services (15 April 1994), Article XVII.

  104. 104.

    Zhongguo Fangqi jiu WTO Yinlian An Shangsu, Huo Zhubu Kaifang Zhuanjie Qingsuan (2012) (中国放弃就WTO银联案上诉,或逐步开放转接清算) [China Gave up to Appeal and May Gradually Open up the Market of Payment and Clearance]. China.com.cn. http://finance.china.com.cn/money/bank/yhyw/20120904/996428.shtml. Accessed 1 September 2018.

  105. 105.

    See, e.g., Announcement of the People’s Bank of China (No. 7 [2013]).

  106. 106.

    See, e.g., Liu (2012).

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  1. China University of Political Science and Law, Beijing, China

    Luyao Che

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Che, L. (2019). Public Law of China’s State-Directed Economy. In: China’s State-Directed Economy and the International Order. Springer, Singapore. https://doi.org/10.1007/978-981-13-5838-8_3

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  • DOI: https://doi.org/10.1007/978-981-13-5838-8_3

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