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China’s Experimentalist Approach to Reform

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Experimental Legislation in China between Efficiency and Legality

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Abstract

Some laws and statutes can be tried out in particular localities and later enacted nationally after the experience has been evaluated and improvements have been made.

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Notes

  1. 1.

    Deng (1984a), p. 158.

  2. 2.

    Zippelius (1991), p. 411; Ranchordás (2013), p. 415.

  3. 3.

    Greenwood (1951), p. 29; Kumar (2002), p. 215.

  4. 4.

    Lelas (2000), p. 211.

  5. 5.

    Greenwood (1951), p. 8.

  6. 6.

    Ranchordás (2014), pp. 37–38.

  7. 7.

    Ranchordás (2013), p. 415.

  8. 8.

    Stettner (1989), p. 806; Ranchordás (2015c), p. 135.

  9. 9.

    Ranchordás (2013), p. 435.

  10. 10.

    Ranchordás (2013), pp. 435–438.

  11. 11.

    Falcón Y Tella (2011), p. 49; Marmor (2011), p. 156.

  12. 12.

    Starck (1995), p. 71; Marmor (2011), p. 156.

  13. 13.

    Ranchordás (2014), p. 3; Stettner (1989), p. 806; Lindner (2007), p. 1004.

  14. 14.

    Jahrreiß (1953), p. 32.

  15. 15.

    Noll (1973), p. 76.

  16. 16.

    Maaß (2001), p. 29.

  17. 17.

    Stettner (1989), p. 808.

  18. 18.

    Ranchordás (2014), p. 5.

  19. 19.

    Dainow (1966–1967), pp. 424–425.

  20. 20.

    Knoop (2013), p. 50.

  21. 21.

    Zippelius (1991), p. 413.

  22. 22.

    Knoop (2013), p. 50.

  23. 23.

    Sofia Ranchordás warns that legal stability might “stiffen into a rigid legal paradigm impervious to changing social norms and practices”, see Ranchordás (2013), pp. 428–429.

  24. 24.

    Mader (1988), p. 219; Stettner (1989), p. 812. In Germany, the field of education was the first area to be susceptible for experiments which is reflected by one of the first and most well-known examples of experiments at state level, namely the “one-step” qualification of lawyers (einstufige Ausbildung nach § 5b DRiG). In recent decades, experiments can be found particularly in social and unemployment policies, but also in the areas of telecommunication, tax and road traffic. A list of examples is found in Maaß (2001), p. 35; Hoffmann-Riem (1993), p. 57.

  25. 25.

    Ranchordás (2014), p. 10.

  26. 26.

    Heilmann (2008a), p. 1; Bi (2015), p. 142.

  27. 27.

    Ye (2012), p. 323; Heilmann (2008a), p. 25. Deng Xiaoping said “practice is the sole criterion for testing truth” (实践是检验真理的唯一标准), believing that only by experimenting with alternative forms of production and entrepreneurial activity would China find the best way for rapid economic growth, see Deng (1984c), p. 229.

  28. 28.

    Chen (1999), p. 43.

  29. 29.

    Heilmann (2008a), p. 28.

  30. 30.

    Ranchordás (2013), pp. 435–438.

  31. 31.

    Chen (1999), pp. 40–41.

  32. 32.

    Wang (2008), pp. 111–112; Bi (2015), pp. 141–142.

  33. 33.

    Huang (2012b), p. 99; Yang (2004), p. 8.

  34. 34.

    Heilmann (2008a), p. 3.

  35. 35.

    Qian and Du (2015), p. 6; Liebman (2011), pp. 173–176.

  36. 36.

    Mao (1965), p. 117.

  37. 37.

    See in detail Heilmann (2008a), pp. 4–7; Qian and Du (2015), p. 6; Lubman (2014), http://blogs.wsj.com/chinarealtime/2014/07/10/power-shift-hopeful-signs-in-chinas-legal-reform-plan/, accessed 20 December 2017.

  38. 38.

    Philion (2009), p. 19.

  39. 39.

    With regard to Mao’s land redistribution policies, see Chang (1951), pp. 550–552.

  40. 40.

    Heilmann (2008a), p. 5; Bell (2015), p. 183.

  41. 41.

    Heilmann (2008a), p. 5.

  42. 42.

    Heilmann (2008a), p. 5; Wu and Wen (2012), p. 39.

  43. 43.

    Wu and Wen (2012), p. 38; Heilmann (2008a), p. 2.

  44. 44.

    Philion (2009), p. 20; Heilmann (2008a), p. 8.

  45. 45.

    See more closely Heilmann (2008a), p. 2; Wu and Wen (2012), p. 38. An Chenxi speaks of “adoption – dissemination” (采取-辐射) technique, see An (2015), p. 115.

  46. 46.

    Qian and Du (2015), p. 6.

  47. 47.

    Heilmann (2008a), p. 11.

  48. 48.

    Andreas (2009), p. 269.

  49. 49.

    The transformation of the rural society was part of the process of socialist revolution: Landlord ownership of farmland was replaced with collectivization in rural areas in favor of poor and landless peasants, see in detail Chang (1951), pp. 550–563.

  50. 50.

    The theoretical foundations for the equilibrium between centralism and the independence of local authorities were laid by Mao Zedong in 1956, elaborating on the “two initiatives” (两个积极性). In his opinion, a unified leadership of the central government was needed but not sufficient and efficient enough to attain a socialist modernization. Rather, local authorities were to be strengthened and had to be granted great discretion in regulating economic and commercial affairs, see more closely Mao (1977), pp. 284–307. The “two initiatives” have been incorporated into Article 3 of the Constitution of 1982, see in detail Jiang (2009), http://www.lishiyushehui.cn/modules/topic/detail.php?topic_id=282, accessed 20 December 2017.

  51. 51.

    The first wave of decentralization coincided with the Great Leap Forward (1958–1960). The second wave of decentralization began in 1970 during the Cultural Revolution, see Tang and Linowski (2011), p. 142.

  52. 52.

    Henders (2013), p. 376.

  53. 53.

    Lieberthal (2004), pp. 189–190; Bell (2015), p. 183.

  54. 54.

    Chen (1998), p. 1225.

  55. 55.

    Heilmann (2008a), p. 13.

  56. 56.

    Chen (1998), p. 1225.

  57. 57.

    Cf. Deng (1984b), pp. 55–60; Qian and Du (2015), p. 6.

  58. 58.

    Henders (2013), p. 377; Montinola et al. (1995), p. 62.

  59. 59.

    Chen (1998), p. 1224; Qian and Du (2015), pp. 6–7.

  60. 60.

    Guo (2013), p. 109.

  61. 61.

    Guo (2013), p. 155.

  62. 62.

    Lieberthal (2004), p. 190; Chen (1998), pp. 1226 and 1234.

  63. 63.

    Concerning the pragmatism and rationalism characterizing post-Mao leadership, see Guo (2013), pp. 109–111.

  64. 64.

    Zhang and Cai (2010), p. 31.

  65. 65.

    His economic reform in 1978 was not based on extremist ideology; it was the strong aim to revive the significance of the CCP by achieving economic success that would improve the living standards of the Chinese people. This mode of reform is also referred to as “decentralization of power and transfer of benefits” (fangquan rangli 放权让利), see more closely Tsang (1998), p. 1326.

  66. 66.

    Heilmann (2008a), pp. 25–26.

  67. 67.

    Heilmann et al. (2013), p. 900.

  68. 68.

    The power of provincial and municipal governments to regulate the SEZs under their jurisdiction is classified as delegated legislative power (shouquan lifaquan 授权立法权) conferred upon them via empowerment decisions (shouquan jueding 授权决定) by the NPCSC, see more closely Sects. 4.2.3 and 4.2.4.

  69. 69.

    Huang (2012a), p. 6; Huang (2012b), p. 99.

  70. 70.

    Ke (2012), p. 96.

  71. 71.

    Vogel (2011), p. 399.

  72. 72.

    Some Chinese scholars also speak of a trial-and-error-mechanism (shicuo jizhi 试错机制), see Qian and Du (2015), p. 6; An (2015), p. 113.

  73. 73.

    An (2015), p. 115.

  74. 74.

    This slogan symbolizing the trial and error approach was first put forth by Chen Yun (陈云), a CCP leader, at a Government Administration Council meeting on April 7, 1950, see more closely Ou (2014), p. 81.

  75. 75.

    Wu and Wen (2012), p. 38.

  76. 76.

    Wu and Wen (2012), pp. 38–39; Huang (2000), p. 67. With regard to policies that are adopted in SEZs and form the basis for learning and thus the broader adoption of the good policies in other territorial regions, Tom Ginsburg speaks of “spatial experimentation of policies”, see Ginsburg (2016), p. 125.

  77. 77.

    Ou (2014), pp. 81–82; Wu and Wen (2012), p. 39.

  78. 78.

    See Constitution of the CCP—General Program.

  79. 79.

    Heilmann (2009), pp. 454–457; Huang (2000), pp. 66–67.

  80. 80.

    Qian and Du (2015), pp. 6–7; Heilmann et al. (2013), p. 899.

  81. 81.

    Wu and Wen (2012), p. 38; Heilmann (2008a), p. 2. Huang Xiulan states that the small-scale experiments have to be continuously observed and reviewed and its results have then to be expanded, see Huang (2000), p. 67.

  82. 82.

    Heilmann (2009), pp. 456–457; Lubman (2006), p. 34. Tom Ginsburg notes that policy diffusion from SEZs depends very much on the decision of the center, see Ginsburg (2016), p. 120.

  83. 83.

    Heilmann (2008a), p. 29; Qian and Du (2015), p. 7.

  84. 84.

    See more closely Zhu (2013), pp. 98–101; Lubman (2006), p. 6.

  85. 85.

    Heilmann (2004), p. 41; Wu and Wen (2012), p. 39. Wu Hao and Wen Tianli emphasize that the central government still holds the leadership position (中央政府的作用仍然是主导性的) by summing up local experiences and deciding on their generalization.

  86. 86.

    Some scholars also speak of a combination of bottom-up (zi xia er shang 自下而上) and top-down (zi shang er xia 自上而下)-model, see Wu and Wen (2012), p. 39; Rawski (1995), p. 1155.

  87. 87.

    Wang (2008), pp. 112–113.

  88. 88.

    Qian and Du (2015), p. 10. Sebastian Heilmann and Barry Naughton emphasize that in case of failed experiments, “political entrepreneurship” may also generate a lot of wasted activities. However, these failed trials while implemented on a small scale do not cause great damage and may even be enriching insofar as they help policy makers understand the underlying socio-economic or financial exigencies, see Heilmann (2008a), p. 1; Naughton (2009), p. 14.

  89. 89.

    Hao (2001), p. 55.

  90. 90.

    Huang and Zheng (2010), pp. 33–34.

  91. 91.

    Huang and Zheng (2010), pp. 33–34. Concerning the range of preferential policies granted to FIEs registered in the SEZ, see for example Articles 12 et seq. of the Regulations on Special Economic Zones in Guangdong Province (广东省经济特区条例) from August 26, 1980.

  92. 92.

    Li (1996), p. 145.

  93. 93.

    See more closely Chen (2009), p. 103.

  94. 94.

    See Hu (2016), p. 141.

  95. 95.

    Kay and Bunnell (2004), pp. I.8.9–I.8.10; Wu (2007), p. 4.

  96. 96.

    Baissac and Farole (2011), p. 24.

  97. 97.

    Baissac and Farole (2011), p. 23; Zeng (2010), p. 4.

  98. 98.

    Baissac and Farole (2011), p. 23; Carter and Harding (2011), p. 3.

  99. 99.

    Carter and Harding (2011), p. 3.

  100. 100.

    Muchlinski (2011), p. 16.

  101. 101.

    Muchlinski (2011), p. 16.

  102. 102.

    FIAS – The World Bank (2008), p. 11.

  103. 103.

    Muchlinski (2007), p. 227.

  104. 104.

    Nallathiga (2008), pp. 1–2.

  105. 105.

    Nallathiga (2008), pp. 1–2.

  106. 106.

    Muchlinski (2011), p. 16.

  107. 107.

    Farole and Akinci (2011), p. 3.

  108. 108.

    Wassermann (1976), p. 479.

  109. 109.

    Wassermann (1976), p. 480.

  110. 110.

    With regard to policy objectives, see in detail Farole and Akinci (2011), pp. 3–4.

  111. 111.

    Wassermann (1976), p. 480; Muchlinski (2011), p. 16.

  112. 112.

    Green and Trebilcock (2007), p. 660.

  113. 113.

    Green and Trebilcock (2007), p. 661.

  114. 114.

    Green and Trebilcock (2007), p. 662.

  115. 115.

    Article 3 SCM Agreement.

  116. 116.

    Torres (2007), pp. 222–223; Muchlinski (2011), p. 30; Tan and Huang (2013), p. 50.

  117. 117.

    Creskoff and Walkenhorst (2009), p. 8.

  118. 118.

    Farole and Akinci (2011), p. 6; Gopalakrishnan (2011), p. 145; Muchlinski (2011), p. 29.

  119. 119.

    Farole and Akinci (2011), p. 6.

  120. 120.

    Wang (2011), p. 93.

  121. 121.

    Harding (2011), p. 164; Hu (2016), p. 139.

  122. 122.

    Likosky (2005), p. 81.

  123. 123.

    Likosky (2005), p. 81.

  124. 124.

    Likosky (2005), p. 81.

  125. 125.

    Carter and Harding (2011), p. 10; Likosky (2005), p. 95.

  126. 126.

    Harding (2011), p. 164.

  127. 127.

    Harding (2011), p. 165.

  128. 128.

    Harding (2011), p. 165.

  129. 129.

    Under the principle of national treatment, a foreign firm must be treated no less favorably than domestic firms. The preferential policies granted to foreign investors have been referred to as “super-national treatment”, a term that originates from the Chinese word chao guomin daiyu 超国民待遇, see in detail Wang (2010b), pp. 377–379.

  130. 130.

    Harding (2011), p. 166.

  131. 131.

    Chen (1999), pp. 321–322.

  132. 132.

    Muchlinski (2011), p. 20.

  133. 133.

    Muchlinski (2011), p. 20.

  134. 134.

    Muchlinski (2011), p. 29.

  135. 135.

    Zeng (2015), p. 3.

  136. 136.

    Deng (1994), p. 358.

  137. 137.

    Chan et al. (1986), pp. 88–89; Carter (2011), p. 59; Crane (1994), p. 77.

  138. 138.

    Chan et al. (1986), p. 91; Wong and Tang (2005), p. 306.

  139. 139.

    Chan et al. (1986), p. 89.

  140. 140.

    The Ministry of Foreign Economic Relations and Trade (dui wai jingji maoyi bu 对外经济贸易部) was renamed Ministry of Commerce (MOFCOM, shangwu bu 商务部) in 2003, see more closely Ministry of Commerce of the People’s Republic of China (2005), http://www.mofcom.gov.cn/article/zt_pingxuan/subjectd/200612/20061204031248.shtml, accessed 20 December 2017.

  141. 141.

    Fenwick (1984), p. 378.

  142. 142.

    Fenwick (1984), p. 378.

  143. 143.

    Fenwick (1984), p. 378.

  144. 144.

    Regulations on Special Economic Zones in Guangdong Province (Guangdong Regulations) from 1980 (广东省经济特区条例).

  145. 145.

    See more closely Wu (1999), p. 14; Zeng (2010), p. 4.

  146. 146.

    Chinese Communist Party News (2008), http://cpc.people.com.cn/GB/68742/69118/69658/7433454.html, accessed 20 December 2017; Coase and Wang (2012), p. 61.

  147. 147.

    The decision to designate part of Shenzhen, Zhuhai and Shantou cities in Guangdong Province and of Xiamen city in Fujian Province was contained in the July 15, 1979 Approval by the Central Committee of the Chinese Communist Party and the State Council for Distribution of the Two Respective Reports of the Guangdong and Fujian Provincial Party Committees concerning the Adoption of Special Policies and Flexible Measures in External Economic Activities, (中共中央、国务院批转广东省委、福建省委《关于对外经济活动实行特殊政策和灵活措施的两个报告》), see Su (2008), p. 23; Fenwick (1984), p. 376.

  148. 148.

    Yang (1988), http://www.bjreview.com.cn/Cover_Story_Series_2010/2010-02/03/content_244683.htm, accessed 20 December 2017.

  149. 149.

    With regard to Special Administrative Regions, see above, Sect. 2.2.1.

  150. 150.

    van der Hum (1995), p. 55.

  151. 151.

    Chan et al. (1986), p. 92.

  152. 152.

    广东省经济特区条例.

  153. 153.

    Zeng (2015), p. 13. A similar set of regulations was adopted for Xiamen SEZ: On July 14, 1984, at the Eighth Session of the Standing Committee of the Sixth Fujian Provincial People’s Congress, five laws for Xiamen SEZ governing the registration of enterprises, land use, labor management, the import of technology, and the economic association between Xiamen SEZ and inland areas of China were adopted, see also Pow and Moser (1987), p. 205.

  154. 154.

    Yeung et al. (2009), p. 223; Di Tommaso et al. (2013), p. 13; Shen and Xu (2012), p. 98. Shenzhen also shares borders with Macao. Thus, Shenzhen, being itself a long-established port city, benefits from the urban markets of the two trading ports.

  155. 155.

    See also Zhong (2011), p. 6.

  156. 156.

    Article 12 of the Guangdong Regulations.

  157. 157.

    Article 14 of the Guangdong Regulations.

  158. 158.

    Article 1 of the Guangdong Regulations.

  159. 159.

    Resolution of Standing Committee of the National People’s Congress Authorizing the People’s Congresses of Guangdong and Fujian Provinces and Their Standing Committees to Formulate Separate Economic Regulations for their Respective Economic Zones (全国人民代表大会常务委员会关于授权广东省、福建省人民代表大会及其常务委员会制定所属经济特区的各项单行经济法规的决议), issued in the 21st meeting of the Standing Committee of the Fifth National People’s Congress on November 26, 1981.

  160. 160.

    Decision of the Standing Committee of the National People’s Congress on Authorizing the People’s Congress of Shenzhen City and its Standing Committee and the People’s Government of Shenzhen City to Formulate Regulations and Rules Respectively for Implementation in the Shenzhen Special Economic Zone (全国人民代表大会常务委员会关于授权深圳市人民代表大会及其常务委员会和深圳市人民政府分别制定法规和规章在深圳经济特区实施的决定), issued in the 26th meeting of the Standing Committee of the Seventh National People’s Congress on July 1, 1992. The legislative authorities of Xiamen municipality (March 22, 1994), Shantou municipality and Zhuhai municipality (March 17, 1996) were also given the right to formulate regulations and rules for the respective zones, see more closely Kay and Bunnell (2004), p. I-8.12.

  161. 161.

    See also Zimmerman (2010), p. 65.

  162. 162.

    Wang (2011), p. 96.

  163. 163.

    Pow and Moser (1987), pp. 211–212.

  164. 164.

    Huang (2012a), p. 6; Huang (2012b), p. 99. Examples of successful regulations in Shenzhen SEZ will be dealt with in Chap. 5.

  165. 165.

    Chen (1999), p. 321; Zeng (2010), pp. 4–5; Gao and Long (1996), p. 135.

  166. 166.

    Luo and Yin (2012), p. 75.

  167. 167.

    Eger and Schueller (2007), p. 19; Crane (1994), p. 85. See also below, Sect. 3.2.2.5.

  168. 168.

    Luo and Yin (2012), p. 75.

  169. 169.

    Yeung et al. (2009), p. 224.

  170. 170.

    Mah (2008), p. 326; Crane (1994), p. 88.

  171. 171.

    Shang (2008), p. 86.

  172. 172.

    See Article 1 of the Guangdong Regulations; see also Crane (1994), p. 80; Zhang and Cai (2010), pp. 31–32.

  173. 173.

    Enterprise Income Tax Law of the People’s Republic of China (中华人民共和国企业所得税法), adopted on March 16, 2007, effective as of January 1, 2008, amended in 2017.

  174. 174.

    Wu (2007), p. 4.

  175. 175.

    For a definition of “national treatment”, see Herdegen (2013), p. 55.

  176. 176.

    See in general Muchlinski (2011), p. 21.

  177. 177.

    Xu and Schiwow (2006), p. 331.

  178. 178.

    Wu (2007), p. 4.

  179. 179.

    Tan and Huang (2013), p. 51; interview with Ding Mingfang (丁明方), Shenzhen Legal Affairs Institute, July 9, 2014.

  180. 180.

    Wuttke (2012), pp. 107–108; Huang and Zheng (2010), p. 33.

  181. 181.

    Huang and Zheng (2010), pp. 34–35; Martinek (2014), p. 47.

  182. 182.

    Interview with Ye Haibo (叶海波) and Xiao Youxian (肖又贤), Faculty of Law, Shenzhen University, July 10, 2014.

  183. 183.

    Wei and Vanhullebusch (2015), p. 334.

  184. 184.

    Eger and Schueller (2007), p. 19; Wuttke (2012), p. 110.

  185. 185.

    Wuttke (2012), p. 121; Huang and Zheng (2010), p. 35; Tan and Huang (2013), p. 50.

  186. 186.

    Tan and Huang (2013), p. 50.

  187. 187.

    See also No VII 1 of The Outline of the Plan for the Reform and Development of the Pearl River Delta (2008–2020) (珠江三角洲地区改革发展规划纲要), adopted by the National Development and Reform Commission in December 2008. Under No VII 1 the Plan states that “Shenzhen will continue to play its role as the window of the special economic zones, as experimental field and as demonstration area (…)”.

  188. 188.

    Wuttke (2012), pp. 109–110.

  189. 189.

    Chan et al. (1986), pp. 92–95; Carter (2011), p. 59.

  190. 190.

    Teets and Hurst (2015), p. 8.

  191. 191.

    Zhang and Cai (2010), p. 33.

  192. 192.

    van der Hum (1995), p. 55; Pearson (1991), p. 53; Wu (1999), p. 13; Chan et al. (1986), pp. 93–95; Kung (1985), p. 203.

  193. 193.

    Lenin (1973), pp. 300–301; Sit (1985), pp. 73–74; van der Hum (1995), p. 55.

  194. 194.

    Pearson (1991), p. 53; Chan et al. (1986), pp. 93–95.

  195. 195.

    Pearson (1991), p. 53.

  196. 196.

    Pearson (1991), p. 53.

  197. 197.

    Fenwick (1984), p. 381; Kung (1985), pp. 201–202.

  198. 198.

    Fenwick (1984), p. 381.

  199. 199.

    Brown (2004), pp. 1–2.

  200. 200.

    For a more detailed list of major types of experimental zones, see Heilmann (2008b), p. 8.

  201. 201.

    国家级经济技术开发区 (state-level ETDZ). Development zones approved by the State Council are referred to as “state-level” zones. As of 2015, the total of state-level ETDZs has added up to 219, see Ministry of Commerce of the People’s Republic of China (2015), http://www.mofcom.gov.cn/xglj/kaifaqu.shtml, accessed 20 December 2017. However, it is remarkable, that in addition to state-level or national zones, also provincial governments have approved development zones, so-called provincial-level zones. In fact, there are about thousands of industrial parks sponsored by provincial and municipal governments, see Sahling (2008), p. 8.

  202. 202.

    技术产业开发区.

  203. 203.

    保税区. Bonded zones provide for duty-free entry of goods that can be stored, manufactured, re-packaged, merchandised or displayed and re-exported without customs duty and import value-added tax (VAT) payment, see Paling et al. (2012), p. 32.

  204. 204.

    Cf. Kay and Bunnell (2004), p. I-8.2.

  205. 205.

    国务院关于支持深圳前海香港现代服务业合作区开发开放有关政策的批复.

  206. 206.

    In June 27, 2012, the official Reply of the State Council on the Relevant Policies Supporting the Development and Opening-up of the Qianhai Shenzhen-Hong Kong Modern Service Cooperation Zone of Shenzhen was released in order to achieve a collaborative relationship between the two adjacent cities of Shenzhen and Hong Kong, see more closely Yeung (2015), p. 17.

  207. 207.

    Central People’s Government (2017), http://www.gov.cn/xinwen/2017-04/01/content_5182824.htm, accessed 19 December 2017.

  208. 208.

    Yeung (2015), p. 19. It allows Hong Kong banks to lend RMB directly to companies in Qianhai. For this, the People’s Bank of China published the Provisional Rules for Cross-border RMB lending in Qianhai (前海跨境人民币贷款管理暂行办法) in December 2012.

  209. 209.

    Interview with Xie Tian (谢天), Qianhai, July 11, 2014; Chen (2013), http://www.scmp.com/business/banking-finance/article/1321674/qianhai-bypassed-firms-head-shanghai-free-trade-zone, accessed 20 December 2017.

  210. 210.

    Central People’s Government (2017), http://www.gov.cn/xinwen/2017-04/01/content_5182824.htm, accessed 19 December 2017.

  211. 211.

    Xiong’an will primarily host non-capital functions from Beijing, and some administrative and public institutions, higher education institutions and financial institutions will be transferred to the new area, see Beijing Review (2017), http://www.bjreview.com/Nation/201704/t20170425_800094640.html, accessed 20 December 2017.

  212. 212.

    Beijing Review (2017), http://www.bjreview.com/Nation/201704/t20170425_800094640.html, accessed 20 December 2017.

  213. 213.

    Sometimes, the term ‘SEZ’ wrongly includes Export Processing Zones (chukou jiagong qu 出口加工区) and other variants of zones, see Ahrens and Meyer-Baudeck (1995), pp. 89–90. It should also be noted that China’s typology of development zones differs from that of ILO.

  214. 214.

    中国(上海)自由贸易试验区.

  215. 215.

    See above, Sects. 3.1.1, 3.1.2 and 3.2.2.2; see also Wei and Vanhullebusch (2015), pp. 324–325.

  216. 216.

    For more details, see Riccardi (2016), p. 63.

  217. 217.

    Wu (2015), http://europe.chinadaily.com.cn/business/2015-04/21/content_20492742.htm, accessed 20 December 2017.

  218. 218.

    Yan and Wang (2016), p. 194; Hu (2016), p. 137.

  219. 219.

    With regard to the general objectives of Shanghai FTZ, see more closely section I (2) of the Framework Plan for China (Shanghai) Pilot Free Trade Zone (中国(上海)自由贸易试验区总体方案), approved by the State Council on September 18, 2013; Yan and Wang (2016), p. 193.

  220. 220.

    Collins (2014), p. 171.

  221. 221.

    The Decision was adopted at the Fourth Session of the Standing Committee of the Twelfth National People’s Congress on August 30, 2013 (全国人民代表大会常务委员会关于授权国务院在中国(上海)自由贸易试验区暂时调整有关法律规定的行政审批的决定).

  222. 222.

    Zhou (2014), p. 15; Riccardi (2016), p. 71.

  223. 223.

    Hu (2016), p. 145.

  224. 224.

    Hu (2016), pp. 129–140.

  225. 225.

    Interview with Xiao Jun (肖军), School of Law, Wuhan University, July 7, 2014.

  226. 226.

    Decision of the NPCSC on Amending Four Laws including the Law of the People’s Republic of China on Wholly Foreign-Owned Enterprises (全国人大常委会高票通过了关于修 改《外资企业法》 等 4 部法律的决定). According to the Decision, certain provisions of the EJV Law, the CJV Law, the WFOE Law and the Law on Protection of the Taiwanese Investment in Mainland China are amended with effect from October 1, 2016, see more closely People’s Daily Online (2016), http://paper.people.com.cn/rmrb/html/2016-09/05/nw.D110000renmrb_20160905_5-04.htm, accessed 20 December 2017.

  227. 227.

    The revised Catalogue of Industries for Guiding Foreign Investment (外商投资产业指导目录(2017年修订)) came into force on July 28, 2017.

  228. 228.

    See more closely Wu and Luo (2017), https://www.chinalawinsight.com/2017/08/articles/corporate/what-will-become-of-foreign-investment-in-china-under-the-new-record-filing-system/, accessed 20 December 2017. Generally, the Catalogue of Industries for Guiding Foreign Investment is divided into three categories consisting of (1) “encouraged”, (2) “restricted” and (3) “prohibited” industry sectors. The revised Catalogue from 2017, for the first time, has only two categories, referring to the restricted and prohibited categories collectively as a negative list.

  229. 229.

    Wu and Luo (2017), https://www.chinalawinsight.com/2017/08/articles/corporate/what-will-become-of-foreign-investment-in-china-under-the-new-record-filing-system/, accessed 20 December 2017.

  230. 230.

    Deng (1984a), p. 158.

  231. 231.

    Heilmann (2008a), p. 1; Wu and Wen (2012), p. 38.

  232. 232.

    Wang (2008), pp. 113–114; Wu and Wen (2012), pp. 38–39; Qian and Du (2015), pp. 6–7. Qian Hongdao and Du Weichao speak of a “trial and error- and mutual learning-system” (shicuo yu huxiang xuexi de tixi 试错与互相学习的体系); similar An (2015), p. 113.

  233. 233.

    For a thorough analysis of experimental legislation from a comparative perspective, see Ranchordás (2014).

  234. 234.

    Ranchordás (2013), p. 419.

  235. 235.

    See introduction to this chapter.

  236. 236.

    Ranchordás (2015c), p. 135.

  237. 237.

    Deng (1984a), p. 158.

  238. 238.

    Bi (2015), p. 151.

  239. 239.

    Huang and Zheng (2010), p. 33; Qin (2005), p. 42. Qin Qianhong speaks of “transformational legislation” (变革性立法).

  240. 240.

    Yang (2004), pp. 6–7. See more closely Chap. 5.

  241. 241.

    An (2015), p. 113.

  242. 242.

    Yang (2004), p. 6; Wang (2010a), p. 67.

  243. 243.

    Wang (2010a), p. 67.

  244. 244.

    Bi (2015), p. 142.

  245. 245.

    Bi (2015), p. 149.

  246. 246.

    Bi (2015), p. 142; An (2015), p. 114.

  247. 247.

    Wu and Wen (2012), p. 42.

  248. 248.

    See, for example, the Regulation of Shenzhen Special Economic Zone on the Promotion of Gender Equity (深圳经济特区性别平等促进条例), passed by the Standing Committee of Shenzhen Municipality on June 28, 2012, effective as of January 1, 2013. This law is the first of its kind to ensure gender equality and yet, there are no enforcement mechanisms, see Sohu (2015), http://roll.sohu.com/20150327/n410385618.shtml, accessed 21 December 2017; Bi (2015), p. 142.

  249. 249.

    van Rooij (2006), p. 48.

  250. 250.

    The World Bank (2016), http://www.worldbank.org/en/country/china/overview, accessed 20 December 2017.

  251. 251.

    Cheng (2015), http://www.shekebao.com.cn/shekebao/n440/n441/u1ai8731.html, accessed 20 December 2017.

  252. 252.

    Wu’s statement can be found in China Daily Europe (2011), http://europe.chinadaily.com.cn/china/2011-03/10/content_12149185.htm, accessed 20 December 2017.

  253. 253.

    Xinhuanet (2017), http://news.xinhuanet.com/politics/19cpcnc/2017-10/27/c_1121867529.htm, accessed 20 December 2017.

  254. 254.

    Xi Jinping aims at fulfilling the “China Dream”, that is, achieving a prosperous and strong country. Yet, as Xi Jinping pointed out at the 19th National Congress of the CCP, the “China Dream” would be “no walk in the park”: “It will take more than drum beating and gong clanging to get there”. He also said, China now embraces the brilliant prospects of rejuvenation, moving closer to centre stage and making greater contributions to mankind, see Phillips (2017), https://www.theguardian.com/world/2017/oct/18/xi-jinping-speech-new-era-chinese-power-party-congress, accessed 20 December 2017.

  255. 255.

    Huang (2012a), p. 7; Wang (2015b), p. 5.

  256. 256.

    Schulz (2012), http://www.spiegel.de/international/world/putting-the-plan-into-action-how-china-s-leaders-steer-a-massive-nation-a-843593-3.html, accessed 20 December 2017.

  257. 257.

    With regard to the multilevel legislative system, see above, Sect. 2.2.1.2.

  258. 258.

    Wang (2011), p. 99; Bi (2015), p. 155; Tan and Huang (2013), p. 50.

  259. 259.

    See above, Sects. 3.1–3.1.3.

  260. 260.

    Heilmann (2008c), p. 3.

  261. 261.

    Schulz (2012), http://www.spiegel.de/international/world/putting-the-plan-into-action-how-china-s-leaders-steer-a-massive-nation-a-843593-3.html, accessed 20 December 2017; Heilmann (2008b), p. 4.

  262. 262.

    Heilmann (2008c), p. 3.

  263. 263.

    Gröpl (2015), pp. 114–115.

  264. 264.

    Heilmann (2008c), p. 3. In German law, legal certainty is described as one of the pillars of a rule-of-law-state (Rechtsstaat). Continuity of legislation refers to the citizens’ legitimate expectation that law endures and does not change spontaneously and arbitrarily. Furthermore, law has to be predictable, that is, the citizens have to be able to foresee the consequences resulting from their conduct, see Ranchordás (2015b), pp. 36–37.

  265. 265.

    Ranchordás (2013), p. 439.

  266. 266.

    Heilmann (2008c), pp. 3–4.

  267. 267.

    Wang (2015a), p. 7.

  268. 268.

    Bi (2015), p. 153; Yang (2014), p. 48.

  269. 269.

    Heilmann (2008c), pp. 3–4.

  270. 270.

    Wang (2015b), pp. 7–8.

  271. 271.

    Keller (1994), p. 730; Zhang (1995b), p. 44.

  272. 272.

    Epstein (1993), p. 222.

  273. 273.

    Wang (2015b), p. 9.

  274. 274.

    James (2000), p. 28.

  275. 275.

    Yu (1989), p. 49.

  276. 276.

    Yu (1989), pp. 39–40.

  277. 277.

    Delisle (2011), p. 150.

  278. 278.

    Delisle (2011), p. 150; Bi (2015), p. 142.

  279. 279.

    Hu Shih (1891–1962) has played a leading role in introducing pragmatism into the Chinese intellectual arena. He was highly influential in the New Culture Movement (新文化运动) of the mid 1910s and 1920s that was directed against the bondage of classic culture of Confucianism. Hu Shih advocated a pragmatic evolutionary change arguing that the Chinese should shift from abstract theories to experimenting with new ideas to find solutions to problems. Hu Shih invited John Dewey, his former teacher, to China in 1919. Dewey’s pragmatist philosophy sparked great enthusiasm for the pragmatic approach in China’s political debate. In the 1950s, Chinese Marxists denounced Hu Shih as a promoter of bourgeois pragmatism. For more details, see Chan (1956), pp. 3–12; Yu (1989), pp. 34–35. With regard to Dewey’s lectures in China, see Feinberg (1975), pp. 365–369; Huang (2014), p. 21. It was during the Reform and Opening Up Policy that the pragmatic, experimentalist approach has again come to the forefront.

  280. 280.

    James (2000), p. 27.

  281. 281.

    Kunzmann et al. (2001), p. 173.

  282. 282.

    According to James, only the pragmatist tells the story of the truth process: By evaluating one’s own experiences, one is able to determine what is “true”, see Cormier (2001), p. 40.

  283. 283.

    See more closely James (2000), p. 25; Posner (1990), p. 1663. Posner argues that pragmatism constitutes an antidote of formalism: In contrast to pragmatism which seeks to examine the relation of concepts to the world of fact, formalism remains anti-empirical; see also Sullivan and Solove (2003), pp. 688–689.

  284. 284.

    James (2000), p. 27; Fogarty (2012), p. 2.

  285. 285.

    Fogarty (2012), p. 1.

  286. 286.

    Fogarty (2012), p. 2.

  287. 287.

    For a discussion on legal pragmatism, see Patterson (1940), pp. 172–204; Butler (2002), https://commons.pacificu.edu/cgi/viewcontent.cgi?article=1050&context=eip, accessed 20 December 2017.

  288. 288.

    Falcón Y Tella (2011), p. 49.

  289. 289.

    Butler (2002), https://commons.pacificu.edu/cgi/viewcontent.cgi?article=1050&context=eip, accessed 20 December 2017.

  290. 290.

    Patterson (1940), pp. 186–187; Wigdor (1974), pp. 178–179.

  291. 291.

    Posner (1990), p. 1657.

  292. 292.

    Posner (1990), p. 1657.

  293. 293.

    Butler (2002), https://commons.pacificu.edu/cgi/viewcontent.cgi?article=1050&context=eip, accessed 20 December 2017; Sullivan and Solove (2003), p. 693.

  294. 294.

    Ranchordás (2013), p. 428.

  295. 295.

    Posner (1990), p. 1664; Ranchordás (2015a), p. 203; Marchant (2011), pp. 199–200.

  296. 296.

    Ranchordás (2015a), p. 201.

  297. 297.

    Hu and Mao (2013), http://english.qstheory.cn/magazine/201301/201302/t20130219_211853.htm, accessed 26 December 2017.

  298. 298.

    The Chinese word for “pragmatism” is shiyong zhuyi 实用主义. However, Chinese scholars when analyzing the core themes of the lectures delivered by the American philosopher John Dewey, translated “pragmatism” into shiyan zhuyi 实验主义, a term that in a literal translation means “experimentalism”, see Gu (2000), p. 105; Heilmann (2008a), p. 18.

  299. 299.

    Chen (1999), p. 43.

  300. 300.

    With regard to the ‘piecemeal’ approach towards law-making advocated by Deng Xioaping, see Chen (1999), pp. 42–43.

  301. 301.

    See Hu and Mao (2013), http://english.qstheory.cn/magazine/201301/201302/t20130219_211853.htm, accessed 28 December 2017; Yu (1989), pp. 38–39.

  302. 302.

    Yu (1989), p. 39; Qian and Du (2015), p. 4.

  303. 303.

    Qin (2005), pp. 42–43; Bi (2015), p. 142.

  304. 304.

    Keller (1994), p. 730; Chen (1988), p. 189; Epstein (1993), p. 214.

  305. 305.

    Yu (1989), p. 40.

  306. 306.

    Guo (2013), pp. 101–102.

  307. 307.

    Blasek (2015), p. 13.

  308. 308.

    Yu (1989), p. 41.

  309. 309.

    Yu (1989), p. 41.

  310. 310.

    Yu (1989), p. 41.

  311. 311.

    Guo (2013), p. 185.

  312. 312.

    Shen (2000), p. 25.

  313. 313.

    Guo (2013), p. 185; Qin (2005), p. 43.

  314. 314.

    Blasek (2015), p. 13; He (2014), p. 47.

  315. 315.

    Shen (2000), p. 25.

  316. 316.

    Immanuel Kant was even willing to sacrifice the world for the sake of law: “fiat iustitia, pereat mundus” (Let justice reign even if all the rascals should perish from it), see more closely Depenheuer (2014), p. 561. Ernst-Wolfgang Böckenförde states that law—from the perspective of the historical school developed by Friedrich Carl von Savigny—is understood as an independent construction of the intellectual-cultural world (“ein selbständiges Gebilde der geistig-kulturellen Welt”), see Böckenförde (1976), p. 16.

  317. 317.

    Shen (2000), p. 28; He (2014), p. 88.

  318. 318.

    Chen (1999), p. 42; Yu (1989), pp. 46–47; Keller (1994), p. 730; Chen (1988), p. 196.

  319. 319.

    See above, Sect. 2.2.2.3.

  320. 320.

    Liebman (2011), pp. 169–170.

  321. 321.

    Liebman (2011), p. 167.

  322. 322.

    Bi (2015), p. 162.

  323. 323.

    Shen (2000), pp. 27–28.

  324. 324.

    Delisle (2011), p. 150; Yang (2014), p. 50; Bi (2015), p. 143.

  325. 325.

    Peng (1992), pp. 295–296. It is reprinted in Chen (1996), p. 18.

  326. 326.

    Yu (1989), p. 42.

  327. 327.

    Yu (1989), p. 42.

  328. 328.

    Hu Angang and Mao Jie explain how Mao Zedong defined the approach of seeking truth from facts: ““facts” refer to all things that exist objectively in the world, “truth” refers to the intrinsic links that exist between objective things, or in other words, objective laws; and “seeking” refers to the act of identifying these laws through the process of study.”, see Hu and Mao (2013), http://english.qstheory.cn/magazine/201301/201302/t20130219_211853.htm, accessed 27 December 2017.

  329. 329.

    See Deng (1984b), p. 58; Rodrik (2009), p. 43.

  330. 330.

    Hu and Mao (2013), http://english.qstheory.cn/magazine/201301/201302/t20130219_211853.htm, accessed 27 December 2017.

  331. 331.

    Yu (1989), p. 44; Chen (2015b), p. 922.

  332. 332.

    Yu (1989), p. 45.

  333. 333.

    Rui (1983–1984), p. 61.

  334. 334.

    Chen (1999), p. 42.

  335. 335.

    Qin (2005), pp. 44–45.

  336. 336.

    Chen Jianfu speaks of law being a “mature form of policy”, see Chen (1999), p. 43. Zhang Zhisheng states that this ripening process of lawmaking has led to an unsystematic, fragmented legislation, see Zhang (1995b), p. 44.

  337. 337.

    Hu and Mao (2013), http://english.qstheory.cn/magazine/201301/201302/t20130219_211853.htm, accessed 27 December 2017.

  338. 338.

    As indicated above in this chapter under Sect. 3.3.2.

  339. 339.

    深圳经济特区改革创新促进条例.

  340. 340.

    See more closely Creemers (2014), https://chinacopyrightandmedia.wordpress.com/2014/10/23/official-central-committee-communique-on-4th-plenum/, accessed 20 December 2017.

  341. 341.

    See above, Sect. 3.3.2; see also Ahl (2015), p. 242.

  342. 342.

    Article 6 of the Legislation Law 2000 only states that the law “shall be made by proceeding from reality”.

  343. 343.

    Heilmann (2009), p. 455.

  344. 344.

    Qin (2005), p. 43; Bi (2015), p. 162.

  345. 345.

    Yu (1989), p. 42.

  346. 346.

    This alludes to the phenomenon of the so-called “benign unconstitutionality” (liangxing weixian良性违宪) as discussed in Sect. 6.3.1.

  347. 347.

    Chen (2015a), p. 231.

  348. 348.

    The statistics can be found in Bi (2015), p. 147. The statistics Bi Yanying produced in the chart in her essay derive from Peking University Law School’s Chinalawinfo database, at: http://www.pkulaw.cn/. It includes all laws, regulations and rules ranging from 1949 to 2015, April 1, including effective, expired and invalid ones. The statistics only comprise legislative norms that include an explicit sign of experimental legislation in their names, such as “temporary”, “for trial implementation” or “pilot implementation”.

  349. 349.

    For example, on September 13, 1979, the Environmental Protection Law of the People’s Republic of China, For Trial Implementation (中华人民共和国环境保护法 (试行)) was enacted which was in effect for 10 years. The Enterprise Bankruptcy Law of the People’s Republic of China from 1986 (中华人民共和国企业破产法 (试行)) was also enacted on a trial basis and has become ineffective only in 2006 when “the time was ripe” to enact the Enterprise Bankruptcy Law (企业破产法).

  350. 350.

    See above, Sect. 2.2.3.3.

  351. 351.

    Bi (2015), p. 146.

  352. 352.

    Bi (2015), p. 146.

  353. 353.

    See also An (2015), p. 113.

  354. 354.

    Bi (2015), p. 146.

  355. 355.

    Heilmann (2008b), p. 5.

  356. 356.

    Articles 9, 56 (3) of the Legislation Law 2000/Articles 9, 65 (3) of the Legislation Law 2015, see above, Sect. 2.2.3.2.

  357. 357.

    Bi (2015), pp. 145–146; Qin (2005), p. 43. The “legislation in advance” is enshrined in Article 64 (2) of the Legislation Law 2000/Article 73 (2) of the Legislation Law 2015.

  358. 358.

    An (2015), p. 117.

  359. 359.

    Li (1996), p. 145.

  360. 360.

    An (2015), pp. 117–118.

  361. 361.

    Qin (2005), p. 43; Corne (2002), p. 373; An (2015), p. 117.

  362. 362.

    Qin Qianhong describes the “legislation in advance” (先行立法) as a typical case of experimental legislation, see Qin (2005), p. 43.

  363. 363.

    See Sect. 2.2.3.3.4.

  364. 364.

    Zou (2006), p. 92.

  365. 365.

    Zou (2006), p. 91.

  366. 366.

    Cf. Heilmann (2009), p. 455; Rodrik (2009), pp. 43–45.

  367. 367.

    See above, Sect. 3.2.2.2.

  368. 368.

    Wu (2007), p. 2; Sun (2007), p. 88.

  369. 369.

    Yang (2004), p. 6; Mei (2013), p. 63; Wu (2004), p. 30.

  370. 370.

    Yuan et al. (2010), pp. 66–72.

  371. 371.

    Xinhua (2017), http://news.xinhuanet.com/english/2017-01/23/c_136007205.htm, accessed 27 December 2017. Shenzhen is on the verge of surpassing Hong Kong’s economy that has averaged an annual growth rate of only about 3%, see Lam (2017), https://www.bloomberg.com/news/articles/2017-09-05/as-shenzhen-overshadows-hong-kong-the-ex-colony-keeps-its-jewel, accessed 20 December 2017.

  372. 372.

    Zhong (2001), p. 19; Yang (2004), p. 6.

  373. 373.

    Zhang (1998), p. 121; Zhang (2011), p. 5. With regard to the bifurcated economic system, see above, under Sect. 2.1.3.

  374. 374.

    Huang (2012a), p. 7; An (2015), p. 112.

  375. 375.

    Yang (2004), pp. 6–7; Huang (2012a), p. 6.

  376. 376.

    Yang (2004), p. 6.

  377. 377.

    The Regulations of the Shenzhen Special Economic Zone on Land Management (深圳经济特区土地管理条例), adopted by the Standing Committee of Guangdong Provincial People’s Congress on December 29, 1987 and promulgated on January 3, 1988 by the Guangdong Provincial People’s Congress, recognized land as an economic asset and set a first example of land commercialization. Concerning their conflict with the Constitution, see Sects. 5.1.1.1 and 6.3.1.1; see also Yu (2011), p. 120.

  378. 378.

    The sole proprietorship investment pattern represented a challenge to the planned economy that was still hesitant to allow foreign influence. Yet, the WFOE was a permissible form of investment in the zones (manifest in Article 1 of the Guangdong Regulations). It was not until 1986 that the Law on Foreign-Capital Enterprises (中华人民共和国外资企业法) (WFOE Law) became effective.

  379. 379.

    Heilmann (2008b), p. 8.

  380. 380.

    Heilmann (2008b), pp. 3–4.

  381. 381.

    Li and Otto (2002), p. 24.

  382. 382.

    Chen (2009), pp. 102–103.

  383. 383.

    Corne (2008), p. I-5.72; Chen (2009), p. 103.

  384. 384.

    Zhang (1995a), p. 13.

  385. 385.

    Zhang (1995a), p. 13. These “legal transplants” provoked harsh criticism and disputes on the success of such transplants with regard to the different legal cultures in Hong Kong and Shenzhen, see Zhang (1998), p. 134; Shen (1999), p. 856.

  386. 386.

    Zhang (1998), p. 125; Heilmann (2008b), p. 8. Shenzhen legislation in the fields of company law, real estate and city planning drew upon legislative precedents from Hong Kong, Singapore and Japan, see Yang (2004), p. 7.

  387. 387.

    See above, Sect. 3.2.2.3.

  388. 388.

    Huang (2012a), pp. 6–7; Zhong (2012), p. 5; Chen and Huang (2010), p. 13.

  389. 389.

    China Daily Europe (2013), http://europe.chinadaily.com.cn/business/2013-08/24/content_16918183.htm, accessed 20 December 2017. During the 19th National Congress of the CCP in October 2017, Xi Jinping defended China’s practice of creating more experimental FTZs, see Xinhuanet (2017), http://news.xinhuanet.com/politics/19cpcnc/2017-10/27/c_1121867529.htm, accessed 20 December 2017.

  390. 390.

    See supra note 221.

  391. 391.

    According to the Decision, the approval items as provided in Articles 6, 10, 20 of the WFOE Law, in Articles 2, 13, 14 of the EJV-Law and in Articles 5, 7, 10, 12 (2), 24 of the CJV-Law have been suspended.

  392. 392.

    See above in this chapter under Sect. 3.2.2.6.

  393. 393.

    Xinhuanet (2015), http://news.xinhuanet.com/english/2015-03/24/c_134093934.htm, accessed 20 December 2017.

  394. 394.

    This Decision was adopted by the NPCSC on December 28, 2014 (全国人大常委会关于授权国务院在中国(广东)自由贸易试验区、中国(天津)自由贸易试验区、中国(福建)自由贸易试验区以及中国(上海)自由贸易试验区扩展区域暂时调整有关法律规定的行政审批的决定).

  395. 395.

    Smeenk et al. (2017), http://www.mondaq.com/china/x/613578/Inward+Foreign+Investment/ Chinas+Free+Trade+Zones+Overview+Of+2017+Developments, accessed 10 December 2017.

  396. 396.

    Xinhuanet (2015), http://news.xinhuanet.com/english/2015-03/24/c_134093934.htm, accessed 20 December 2017.

  397. 397.

    Wu and Li (2015), pp. 77–78; Qian (2015), pp. 56–57; Li (2017), p. 85.

  398. 398.

    See Chap. 2, supra note 182.

  399. 399.

    This is manifest in Article 11 of the Legislation Law. See also Li (2017), p. 90.

  400. 400.

    According to Article 4 clause 2 of the Ordinance concerning the Procedures for the Formulation of Administrative Regulations (行政法规制定程序条例), issued by the State Council and in force since January 1, 2002, the administrative regulations made through authorization of the NPC and its Standing Committee shall be named “interim regulations” (暂行条例) or “interim provisions” (暂行规定). Article 9 of the Legislation Law 2000 as well as Legislation Law 2015 allows the NPC and the NPCSC to authorize the State Council to pass administrative regulations on the matters exclusively falling under the jurisdiction of the NPC and the NPCSC (specified in Article 8).

  401. 401.

    For instance, the Provisional Regulations on the Administrative Punishment for Speculation and Profiteering (投机倒把行政处罚暂行条例) issued in 1987 by the State Council have become invalid in 2008. The provisions were incompatible with social practices and reality, see more closely Decision of the State Council on Abolishing some Administrative Regulations (国务院关于废止部分行政法规的决定), issued in 2008. The Provisional Regulations of the People’s Republic of China on Private Enterprises (中华人民共和国私营企业暂行条例) have been promulgated by the State Council on June 25, 1988 and were in effect until recently.

  402. 402.

    The clear indication of an expiration date in advance is an essential requirement for ensuring the constitutionality of experimental legislation, see more closely Ranchordás (2014), p. 87.

  403. 403.

    Keller (1994), p. 735.

  404. 404.

    Zhou (1992), p. 116; Chen (1999), p. 117.

  405. 405.

    Chen (1999), p. 117; Huang and Zhu (1986), p. 8.

  406. 406.

    Zhou (1992), p. 116; Corne (2002), p. 382.

  407. 407.

    Article 10 (2) of the Legislation Law 2015. The deadline restriction cannot apply to existing experimental legislation due to the doctrine of non-retroactivity, see Bi (2015), p. 151.

  408. 408.

    Article 10 (3) of the Legislation Law 2015.

  409. 409.

    E.g. Decision of the Standing Committee of the National People’s Congress on Authorizing the State Council to Temporarily Adjust Certain Administrative Approval Items Prescribed in Laws in Guangdong Province (全国人民代表大会常务委员会关于授权国务院在广东省暂时调整部分法律规定的行政审批的决定), adopted on December 28, 2012; Decision of the Standing Committee of the National People’s Congress on Authorizing the State Council to Temporarily Adjust the Relevant Administrative Approval Items Prescribed in Laws in China (Shanghai) Pilot Free Trade Zone, adopted on August 30, 2013 (see supra note 221); Decision of the Standing Committee of the National People’s Congress on Authorizing the State Council to Temporarily Adjust the Relevant Administrative Approval Items Prescribed in Laws in China (Guangdong) Pilot Free Trade Zone, China (Tianjin) Pilot Free Trade Zone, China (Fujian) Pilot Free Trade Zone, and the Extensions of China (Shanghai) Pilot Free Trade Zone, adopted on December 28, 2014 (see supra note 394); Decision of the Standing Committee of the National People’s Congress on Authorizing the State Council to Temporarily Adjust the Implementation of the Provisions of Relevant Laws in the Administrative Regions of Daxing District of Beijing Municipality and Other 33 Pilot Counties (全国人民代表大会常务委员会关于授权国务院在北京市大兴区等三十三个试点县(市、区)行政区域暂时调整实施有关法律规定的决定), adopted on February 27, 2015; Decision of the Standing Committee of the National People’s Congress to Temporarily Adjust the Implementation of the Provisions of Relevant Laws in the Administrative Regions of Daxing District of Beijing Municipality and other 232 Pilot Counties (Cities and Districts) and Jixian County of Tianjin Municipality and other 59 Pilot Counties (Cities and Districts), adopted on December 27, 2015 (全国人民代表大会常务委员会关于授权国务院在北京市大兴区等 232 个试点县 (市、区)、天津市蓟县等59个试点县(市、区)行政区域分别暂时调整实施有关法律规定的决定); see in detail Wu and Li (2015), pp. 77–78.

  410. 410.

    Qian Ningfeng differentiates this new design of empowerment decision that has come to the fore since 2006 from the general, broadly worded, rather unstructured empowerment decisions prevailing in the 1980s and 1990s, see Qian (2015), p. 56.

  411. 411.

    An (2015), pp. 117–118; Bi (2015), p. 146.

  412. 412.

    Kischel (2015), pp. 756–757.

  413. 413.

    Keith and Lin (2009), p. 224.

  414. 414.

    Article 67 No 4 of the Constitution.

  415. 415.

    Resolution of the Standing Committee of the National People’s Congress Providing an Improved Interpretation of the Law (全国人民代表大会常务委员会关于加强法律解释工作的决议), adopted on June 10, 1981.

  416. 416.

    Keith et al. (2014), p. 59; An (2015), p. 118.

  417. 417.

    Wang (2006), p. 528. For instance, despite the lack of laws and regulations governing stock exchanges in 1992, Shenzhen courts accepted the cases on disputes over stock exchanges occurring in Shenzhen and adjudicated according to the principles of seeking truth from facts, equality and reasonableness which national legislation later could draw upon, see Wang (2006), p. 546. Wang also quotes News report by People’s Daily, Dec. 22, 1992.

  418. 418.

    Wang (2006), p. 528.

  419. 419.

    Wang (2006), p. 541.

  420. 420.

    Wang (2006), p. 524; Keith et al. (2014), p. 65.

  421. 421.

    Keith and Lin (2009), pp. 229–230. They emphasize that the expanding role of judicial interpretation has become highly controversial since it encroaches upon legislative powers.

  422. 422.

    全国人大常委会关于授权最高人民法院,最高人民检察院在部分地区开展刑事案件速裁程序试点工作的决定, adopted on June 27, 2014. Article 13 of the Legislation Law 2015 serves as a legal basis for this kind of empowerment decision, see Wu and Li (2015), pp. 77–78.

  423. 423.

    全国人大常委会关于授权最高人民法院、最高人民检察院在部分地区开展刑事案件认罪认罚从宽制度试点工作的决定, adopted on September 3, 2016; see also Xinhua (2016), http://news.xinhuanet.com/english/2016-09/03/c_135656720.htm, accessed 20 December 2017.

  424. 424.

    Heilmann (2008b), p. 7.

  425. 425.

    An (2015), p. 117.

  426. 426.

    In general Heilmann (2008b), p. 7; Lubman (2014), http://blogs.wsj.com/chinarealtime/2014/07/10/power-shift-hopeful-signs-in-chinas-legal-reform-plan/, accessed 20 December 2017; Li (2015), p. 118. Li Ben Sen also states that by means of these pilot programs which constitute the framework of experimental legislation in criminal procedure, domestic as well as international experiences should be incorporated in the testing process.

  427. 427.

    After the modification of the Legislation Law 2015: Article 73 (2).

  428. 428.

    With regard to the functions of “local legislation in advance” see above, Sect. 2.2.3.3.4.

  429. 429.

    Li and Otto (2002), p. 23; Li (2000), p. 128.

  430. 430.

    Li and Otto (2002), p. 23; Xia (2008), pp. 4–5.

  431. 431.

    Paler (2005), p. 307; Li (2000), p. 128.

  432. 432.

    Tian (2011), p. 18; Zhou (2004), p. 220.

  433. 433.

    Ke (2012), p. 96.

  434. 434.

    Ke (2012), p. 96.

  435. 435.

    Xia (2008), p. 5; Fan (2015), p. 2.

  436. 436.

    With regard to general local legislative power see above, Sects. 2.2.3.3–2.2.3.3.5.

  437. 437.

    Article 73 (2) of the Legislation Law 2015.

  438. 438.

    Heilmann (2008a), p. 2.

  439. 439.

    This has already been mentioned in Sect. 3.1.3. For details on the characteristics of the central-local relationship, see Zhang (2015), pp. 17–18; Heilmann (2008a), p. 2; Wu and Wen (2012), p. 39.

  440. 440.

    See above, Sect. 2.2.3.3.2.

  441. 441.

    Yin (2015), http://www.bjreview.com.cn/quotes/txt/2015-06/04/content_680341_3.htm, accessed 22 December 2017.

  442. 442.

    Yang and Yang (2016), p. 120; Zhou (2015), p. 140.

  443. 443.

    Heilmann (2009), p. 453.

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    Madeleine Martinek

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Martinek, M. (2018). China’s Experimentalist Approach to Reform. In: Experimental Legislation in China between Efficiency and Legality. Springer, Cham. https://doi.org/10.1007/978-3-319-77616-3_3

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