Property Law finally put to congress
After record seven readings, controversial bill to protect private ownership is expected to be passed
Lawmakers yesterday formally presented the long-awaited final draft of the controversial Property Law, a document that is for the first time expected to enshrine protection of private ownership in the nation's civil code.
The draft has been subject to a record seven readings and more than 100 National People's Congress Standing Committee meetings since it was first presented to legislators in 2002, because of strong opposition from leftists determined to stress the ideological primacy of socialism.
The bill is expected to be passed by the NPC when its annual session ends next Friday and come into effect from October.
NPC Standing Committee vice-chairman Wang Zhaoguo introduced the draft during the ongoing legislative session and addressed opposition to the bill.
Mr Wang said China's economic system made the law necessary, and the draft would be good for both the public and private sectors.
'Enactment of the property law ... will be conducive to consolidating and developing the publicly owned sector and ... will be conducive to encouraging, supporting and guiding the development of the non-publicly owned economic sector,' he said.
The major principle of the Property Law is equal protection of the property of the state, the collective and the individual.
'The property of the state, the collective, the individual and other owners is protected by law, and no units or individuals may infringe upon it,' the bill says.
More than 50 years ago, personal assets were seized and transferred to communal hands with the creation of a socialist system.
But now, Mr Wang insisted: 'Participants in the market, formed by economic sectors of different forms of ownership, operate and form mutual relationships in a unified market. They all have equal status in the market, enjoying the same rights, observing the same rules and ... responsibilities.'
The Property Law draft was released in 2005 for public feedback, but intense criticism forced revisions. Compared with the 2005 version, the 40-page, 247-clause draft unveiled this time contains changes to the main controversial areas such as the protection of state-owned assets, land acquisition and the transfer of rural land-use rights.
Drafters responded to concerns about the ransacking and cheap sell-offs of property from state-owned enterprises by making it illegal to 'conspire to take a share in such property or take unauthorised charges over it in the course of the restructure of enterprises'.
The bill rules out the transfer of rights over contracted rural land and land with existing homes, in contrast with the previous draft.
Mr Wang said: 'The right to manage contracted land and the rights to the land occupied by their houses provide a life-long foundation for farmers, and the conditions for lifting such restrictions are not yet ripe.'
In dealing with land expropriation, widespread in China's modernisation process, the draft details various compensation schemes for different types of landowners.
Key legal changes
Greater protection of state-owned assets, including clauses specifying that 'illegal possession, looting, illegal sharing, withholding or destruction of state property by any unit or individual is prohibited'.
Tightening up on conditions relating to the transfer of rights over contracted rural land and land with existing homes.
A clear statement specifying under what conditions homes and land can be acquired; and more details about the land acquisition compensation scheme.
Inserts the word 'legal' in a protection clause to specify that 'legal private ownership should be protected'.
