China considering to extend civil law protection to more small businesses, firms

World
Europe

China is making efforts to move towards a more comprehensive and unified legal system.

More small businesses and firms are to be covered under the country’s civil law according to new proposals, Zhang Rongshun, vice chairman of the Legislative Affairs Commission of the NPC Standing Committee, announced Thursday on the sidelines of the Two Sessions in Beijing.

Zhang Rongshun, vice chairman of the Legislative Affairs Commission of the NPC Standing Committee, speaks at a press conference in Beijing on March 9, 2017. /NPC.gov.cn Photo

If adopted, the draft Provisions of Civil Law under review in the National People’s Congress (NPC) will bring China one step closer to adopting a long-absent civil code.

Speaking to the press on the sidelines of the Fifth Session of the 12th NPC in Beijing, Zhang announced: “The draft stipulates that there are three categories of civil law subjects: natural persons, legal persons and unincorporated organizations.”

A press conference on the draft Provisions of Civil Law and legislative work in China is held in Beijing on March 9, 2017. /NPC.gov.cn Photo

“A lot of newly emerged social organizations and economic entities will gain the status of civil law subjects,” he added.

For the first time, unincorporated organizations will be protected under the civil law, and certain entities with Chinese characteristics, such as rural economic collectives, villagers' committees and individual businesses will also be guaranteed that status.

By the end of 2016, the number of individual businesses in China had increased to nearly 60 million.

An individual business owner in Wannian County, Jiangxi Province in east China. /CFP Photo

Among other provisions, the draft will also strengthen civil rights protection, including for fetuses, minors and elderly or disabled,

‍The draft also calls for the protection of online virtual assets and data, as personal information leaks have increased in recent years.

According to the draft Provisions of Civil Law, fetuses in China will enjoy inheritance rights. /CGTN Photo

The documents already went through three readings in the NPC Standing Committee, with a fourth reading planned during the Fifth Session of the 12th NPC.

After the adoption of the general provisions, lawmakers will step up work on compiling individual regulations on property, contracts and marriage, among others, to be then integrated into a unified code.

China is expected to form a complete civil code by 2020, NPC Standing Committee Chairman Zhang Dejiang said Wednesday.