China's Uniform Contract Law: Progress and Problems

Abstract

ARTICLES CHINA'S UNIFORM CONTRACT LAW: PROGRESS AND PROBLEMS Zhong Jianhua* Yu Guanghua** I. INTRODUCTION Although China decided to adopt a market-oriented econ- omy in the early 1990s, its contract law system remained unsatis- factory. The numerous provisions on governmental intervention in the 1993 aendments to the Economic Contract Law of the 2 PRC (ECL)l indicate that the reforms were incomplete. Problems still exist in numerous areas. 3 First, party autonomy is quite limited. The law of contracts is quite paternalistic and the room for intervention is unnecessarily large. Second, the con- tract laws do not cover a wide sector of economic activities be- tween individuals or between individuals and legal persons. Third, the provisions in the various contract laws are insuffi- ciently detailed. This creates difficulties not only for contractual parties in guiding their transactions but also for courts in han- dling cases. Fourth, the differential treatment of civil contracts * LL.M. candidate, College of Law, University of Arizona; Ph. D. candidate, Faculty of Law, University of Hong Kong; Master of Laws, Peking University; Asso- ciate Professor of Law, Law School, Yantai University, China. ** Assistant Professor, Faculty of Law, University of Hong Kong. 1. See REVISIONS TO THE ECONOMIC CONTRACT LAW, Fagui Huibian [Collection of the Laws of the PRC](1993). 2. For instance, the revised ECL still allowed the state to impose mandatory plans on enterprises. See id. art. 11. Also, product quantity shall be measured in accordance with state regulations if State-imposed standards exist. See id. art. 17(1). Stipulated product quality requirements and packaging quality requirements may not be less stringent than mandatory state or industry standards if such standards exist. See id. art. 17(2). The parties shall only set prices of products in the absence of state prices. See id. art. 17(3)). 3. Zhang Guangxing, Zhonghua Renmin Gongheguo Hetongfa de Qicao, FA XUE YAN JIU, at 3, 4 (1995).