The New Chinese Property Rights Law: An Evaluation from a Continental Perspective

Abstract

On October 1, 2007 – the 48th anniversary of the founding of the People’s Republic of China (PRC) – the Property Rights Law of the PRC (hereinafter “PRL” or “Property Rights Law”) entered into force. The symbolic date clearly expresses the importance of this law, which was fourteen years in the making and of much interest both within China and internationally. The central thrust of the law is the protection of private property through the “socialist market economy” of the People’s Republic of China, which has been widely commented upon and is the law’s major political essence. Due to the law’s orientation towards German Law – in its basic structure and many individual provisions – this article uses Continental and especially German law to explain its major features and peculiarities. Registration requirements for real property rights and real rights for security will in the future be unified – the registration system, at least in the cities, leans on a German system, but does not copy it. The Regulations on residential property developed elements of different legal systems as the basis of a future Chinese solution. A reform of land use rights includes gestures towards the creation of private property in land (at least from an economic viewpoint) – altogether a major step forward not only towards the enactment of a comprehensive Chinese Civil Code but also on the long road of shaping a Chinese rule of law.