Legal reforms in China needed to help service sector, improve social stability
Winston Mok says centralising mainland courts would reduce meddling by local governments
In the upcoming third plenum of the current Central Committee, a comprehensive set of legal reforms proposed by the Supreme People's Court will be considered.
The foundation of such reforms is the financial independence of the judiciary from local governments. At the root of the problem is the fact that mainland courts, being locally funded, are subject to local influence. The head of China's Supreme People's Court Zhou Qiang admitted that some local courts might have been subjected to significant interference.
In the overall reform programme proposed by the State Council's Development Research Centre, responsibilities between the central and regional government will be redrawn. Among the areas to be centralised may be the judiciary. Central financing of the judiciary will partly shield it from local meddling.
In the recent arrest of reporter Chen Yongzhou , it was the manner of the "cross-provincial" arrest by Changsha police that caused the initial uproar. The Mercedes-Benz van that took Chen away was allegedly provided by Zoomlion, the subject of Chen's series of unfavourable articles. The chairman of Zoomlion is the son of a retired senior Hunan court official.
In the proposed judiciary reforms to improve judicial independence, trials may be less localised, with some conducted at third-party "neutral" or higher-level jurisdictions. Given the circumstances, the trial of Chen will have higher credibility if done in locations such as Shanghai or Beijing.
The rule of law is the basis for lasting stability in China. Much of the social unrest today is caused by exploitive local governments acting outside the law. Lacking trust in the local courts, farmers often find confrontation as the only known means to defend their rights. Without a credible and impartial judicial process to resolve disputes, particularly between the people and the state, social stability is undermined.
The proposed reforms will strictly prohibit courts from involvement in the planning and administration of land appropriation and demolition. The rule of law would reduce social unrest and lead to significant savings in internal security. Part of such savings may be redirected to better pay for judges to lower the temptation of corruption, as advocated in the proposal.
With strong rule of law, the dissatisfied populace no longer needs to appeal to higher-level executive authorities for their grievances. With a credible judicial process, disputes may be resolved legally - a more dependable justice than the benevolence of men. To that end, the Development Research Centre has proposed encouraging public interest lawsuits and allowing class action lawsuits.
Meng Jianzhu , the secretary of the central political-legal commission, who also heads the Central Comprehensive Social Management Commission, said: "From practice we know that, for promoting development, maintaining stability, managing innovation, upgrading services, the rule of law is the most reliable method."
Many foreign investors see the rule of law as a top issue for China's continued economic development. A key problem is the mainland's poor civil justice.
Premier Li Keqiang has promised to provide "a level playing field and better legal environment for foreign investors". The proposed legal reforms hinted that the trial of cases may be allocated by type rather than by region. The Supreme People's Court may consider setting up a special circuit to deal with commercial cases involving foreign parties - thus providing them with greater confidence.
The service sector, including financial services, is the next frontier of economic development for the mainland, for which the rule of law is particularly important. In contrast to Hong Kong, which is ranked 3rd and 7th for investor protection and minority protection in the World Economic Forum's Global Competitiveness Report, the mainland is ranked 84th and 75th in these areas.
Thus, it would be an uphill battle for China to make Shanghai a global financial centre. For Shanghai's free trade zone and Shenzhen's Qianhai to be competitive in international financial services, they may need to be "special legal zones" - with much better rule of law.
The proposed judicial "independence" will be from the local administration, not from the party - at least not yet. Senior officials righting local wrongs is an evergreen theme among Chinese dramas. The Taiwanese television series Judge Bao, an incorruptible magistrate dispensing even-handed justice, was popular on the mainland. If China's reformed judiciary under Zhou's leadership can establish a Bao-like reputation, the standing of Beijing will be much enhanced.
