China is moving towards a new revolution in private property rights.
Although China’s economic and social conditions have changed dramatically with its emergence as an economic force, its private property rights have remained untouched and so far looked out of context. But on Sunday, as its top legislators urged the passage of a new law to protect private property, the pieces of economic, social and private property rights now appear to be falling into place.
China, a dominating communist force of the 20th century, has altered its contours significantly and is poised for another swing. The new bill, which is likely to be cleared by the parliament next week states that “the property of the state, the collective, the individual and other obliges is protected by law, and no units or individuals may infringe upon it“. This will help protection of private assets and stop any illegal expropriation. Although it will not solve all the issues pertaining to the property rights in China, it would provide a good balance between private investment and state control.
As the amount of private investment in China’s economy substantially increases, it is very important for investors and individuals to protect their property rights. The 40 page bill states that “the lawful property of individual persons shall be protected by law“, which would provide a boost of confidence to investors in private property.
Other major beneficiaries will be farmers who would get protection against illegal land seizures. This could bring to rest the farmers’ movement initiated by farmers to protect their farmland against illegal land seizures and transfers to commercial developers, often without adequate compensation.
It took much longer than anticipated for the legislators to bring about the much-desired change in the property rights law in China; it is a leap towards democratisation of China. However, critics still believe that the bill has a tone that recognises the state owned sector as the most dominating and leading force.
Whatever it is, we would say a great move for another revolution. As you can see in the tabs on the top, we now have a new forum where we would be glad to hear your thoughts. It’s very easy to join, try it out.
Other China property law articles:
- China’s top legislator urges passage of landmark private property law [IHT]
- China’s next revolution [The Economist]
- China property law bolsters private rights [Reuters]
- Property Law Welcomed [China View]