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Experimental Legislation in China between Efficiency and Legality pp 185–225Cite as

Major Achievements in Experimenting with Novel Regulatory Approaches

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Abstract

上有政策、下有对策

(Policies from the top, counterstrategies at the bottom)

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Notes

  1. 1.

    This idiom reflects the “superficial compliance with top-down policies and the tension between the high- and low-level authorities” see in detail Hsing (1997), pp. 150–151.

  2. 2.

    Yang (2004), pp. 6–7. See also above, Sect. 3.3.5.1.1.

  3. 3.

    Wang (2002), p. 68.

  4. 4.

    Interview with Ding Mingfang (丁明方), Shenzhen Legal Affairs Institute, July 9, 2014. The scholar Feng Yang also takes account of the different periods of development of the Shenzhen SEZ and divides the legislation of Shenzhen SEZ into three stages, see Feng (2016), pp. 157–166. In this regard, however, he does not focus on the year of 2000 as the beginning of the twofold legislative power of Shenzhen.

  5. 5.

    Tan and Huang (2013), p. 53.

  6. 6.

    Yuan et al. (2010), p. 66.

  7. 7.

    Yuan et al. (2010), p. 68.

  8. 8.

    See more closely Gang (1994), pp. 102–103.

  9. 9.

    Yuan et al. (2010), pp. 63–67; von Senger (1994), p. 167.

  10. 10.

    Gu (2000), p. 225; Zhu (1994), pp. 1611–1612; Yuan et al. (2010), p. 57.

  11. 11.

    Yang and Chen (2014), p. 15.

  12. 12.

    See more closely Guo (2013), pp. 94–96.

  13. 13.

    The government intended to avoid the extra manpower and accountancy involved, see Zhu (1994), p. 1612.

  14. 14.

    Yu (2011), p. 119; Zou et al. (2014), p. 9115.

  15. 15.

    Article 10 (1), (2) of the 1982 Constitution.

  16. 16.

    Article 80 (3) of the General Principles of Civil Law from 1986; Article 2 (2) of the Land Administration Law (中华人民共和国土地管理法), adopted by the NPCSC on June 25, 1986.

  17. 17.

    Zhu (1994), p. 1612.

  18. 18.

    Formally, according to Article 12 of the Guangdong Regulations, foreign investors enjoyed the privilege of obtaining land use rights in the SEZs. This preferential measure was to be specified and complemented by further SEZ regulations.

  19. 19.

    深圳经济特区土地管理暂行法规.

  20. 20.

    Ye et al. (2014), p. 301.

  21. 21.

    Ng and Tang (2004), p. 187.

  22. 22.

    Xu (2008), http://theory.people.com.cn/GB/68294/136965/8244865.html, accessed 23 December 2017; Ng and Tang (2004), p. 187; Rithmire (2015), p. 42.

  23. 23.

    Xu (2008), http://theory.people.com.cn/GB/68294/136965/8244865.html, accessed 23 December 2017; Ye et al. (2014), p. 301.

  24. 24.

    深圳经济特区土地管理条例, adopted on December 29, 1987 by the Standing Committee of the Shenzhen Municipal People’s Congress, promulgated January 3, 1988 by the Guangdong People’s Congress, repealed in 1991.

  25. 25.

    Article 9 of the Shenzhen SEZ Regulations on Land Management.

  26. 26.

    Article 13 of the Shenzhen SEZ Regulations on Land Management.

  27. 27.

    Article 22 of the Shenzhen SEZ Regulations on Land Management.

  28. 28.

    Zhang (2007), p. 65. The land use rights were virtually identical to the long-term leases of capitalist economies, see Clarke (2017), https://www.foreignaffairs.com/articles/china/2017-05-16/has-china-restored-private-land-ownership, accessed 20 December 2017.

  29. 29.

    In accordance with the constitutional amendment, the Land Administration Law was also changed in 1988, allowing for a transfer of land-use right, implementing a system of compensated use of state-owned land.

  30. 30.

    Gu (2000), p. 225; Li (1996), p. 148.

  31. 31.

    Yang and Chen (2014), p. 15; Tang (1996), p. 6.

  32. 32.

    The “yong ren danwei” (用人单位), that is, an organization (zuzhi 组织), rather than an individual person, functioned as employer (guzhu 雇主), for example, an enterprise (qiye 企业), being the main form of the employing unit, but also a government department, a commune or a university. One might think that the danwei has become obsolete since it is characteristic of a command economy. However, the term “yong ren danwei” is still used in the Labor Contract Law (中华人民共和国劳动合同法), promulgated on June 29, 2007 and amended in 2012 denoting the employer as employing unit. According to Article 2 (1) of the Labor Contract Law natural persons are not qualified as an employer, instead, Article 2 (1) refers to any profit-making undertaking in any kind of organizational form; a business license or a certificate of registration are required (Article 4 of the Regulation on the Implementation of the Labor Contract Law), see more closely Brown (2010), pp. 25–29. The employment of workers without any lawful business operations is punishable (Article 93 of the Labor Contract Law).

  33. 33.

    Yang and Chen (2014), p. 19.

  34. 34.

    Yang and Chen (2014), pp. 19–20; Tang (1996), p. 6.

  35. 35.

    Tang (1996), p. 20.

  36. 36.

    深圳经济特区商品房产管理规定, adopted by the Standing Committee of the People’s Congress of Guangdong Province on November 15, 1983 and promulgated by the Guangdong Provincial People’s Government on January 23, 1984. These regulations were repealed by the Decision of the Standing Committee of the People’s Congress of Guangdong Province on Abolishing part of the Local Regulations Promulgated before October 1995, see Chap. 4, supra note 240.

  37. 37.

    Tang (1996), p. 17. These Regulations can be seen as a typical example of foresighted legislation, see Zhang (1988), p. 54.

  38. 38.

    This is to say, individuals may only obtain transferable land-use rights for a certain period of time for a land-use fee. They can, however, privately own residential houses and apartments on the land (home ownership).

  39. 39.

    The Housing Reform Plan of Shenzhen Special Economic Zone (深圳经济特区住房制度改革方案).

  40. 40.

    Point 4, 2-1 of the Housing Reform Plan.

  41. 41.

    Point 4, 2-1 of the Housing Reform Plan.

  42. 42.

    Ng and Tang (2004), p. 187.

  43. 43.

    The Decision on Deepening the Reform of Urban Housing System (国务院关于深化城镇住房制度改革的决定) was issued on July 18, 1994, see more closely China Real Estate (1994), pp. 4–6.

  44. 44.

    China Real Estate (1994), p. 5; Yu (2011), p. 121.

  45. 45.

    中华人民共和国城市房地产管理法, adopted by the NPCSC on July 5, 1994.

  46. 46.

    Cf. Tang (1996), pp. 23–24.

  47. 47.

    Gu (2000), pp. 225–226.

  48. 48.

    Leung (2012), p. 3.

  49. 49.

    Lo (1999), pp. 79–80.

  50. 50.

    Wu (1999), pp. 56–57; Sang (1993–1994), p. 147.

  51. 51.

    Sang (1993–1994), p. 147.

  52. 52.

    Zou (2009), http://www.ilera-directory.org/15thworldcongress/files/papers/Track_4/Wed_W2_ZOU.pdf, accessed 20 December 2017.

  53. 53.

    See Articles 7, 13, 15 and 16 of the Labor Insurance Regulations of the People’s Republic of China (中华人民共和国劳动保险条例), adopted on February 23, 1951; see also Weston (2004), p. 71.

  54. 54.

    Feng (2011), pp. 38–39.

  55. 55.

    Yuan et al. (2010), p. 67; Zhong (2011), p. 7; Li (1996), p. 148.

  56. 56.

    Articles 19–21 of the Guangdong Regulations.

  57. 57.

    广东省经济特区企业劳动工资管理暂行规定.

  58. 58.

    Tsui (2005), p. 162; Zhong (2011), pp. 7–8.

  59. 59.

    Article 2 clause 2 of the Provisions for Labor Management in Sino-Foreign Joint Ventures (中华人民共和国中外合资经营企业劳动管理规定), promulgated by the State Council on and effective as of July 26, 1980.

  60. 60.

    Leung (2012), pp. 2–3. Article 6 of the EJV Law from 1979 already stipulated that the employment and discharge of workers shall be specified in contracts. However, this provision was not applied in practice, since experience in the SEZs had to be gathered first. In 1988, the CJV Law also incorporated a labor contract system (Article 13).

  61. 61.

    国营企业实行劳动合同制暂行规定.

  62. 62.

    The Labor Law of the People’s Republic of China (中华人民共和国劳动法) has been adopted by the NPCSC on July 5, 1994, has entered into force as of January 1, 1995 and was amended in 2009.

  63. 63.

    Yuan et al. (2010), p. 67.

  64. 64.

    Pow and Moser (1987), p. 217; Tsui (2005), p. 294; Feng (2016), p. 159.

  65. 65.

    Weston (2004), p. 71.

  66. 66.

    The insurance system provides financial protection against major life risks, such as illness, old age or invalidity. Germany is a prototype of a so-called “welfare state” or “social state” which is characterized by state interventions ensuring social insurance that covers health and social care and which is managed by system of independent funds. This form of an obligatory social insurance arose from reforms initiated by Otto von Bismarck.

  67. 67.

    For details, see Tsui (2005), pp. 325–326.

  68. 68.

    Tsui (2005), p. 326.

  69. 69.

    Wu and Ip (1985), p. 226.

  70. 70.

    Article 11 of the Provisions for Labor Management in Sino-Foreign Joint Ventures (supra note 59).

  71. 71.

    中华人民共和国社会保险法.

  72. 72.

    深圳经济特区企业工资管理暂行规定.

  73. 73.

    深圳经济特区劳动合同条例.

  74. 74.

    深圳经济特区企业员工社会养老保险条例. These provisions provided valuable experience and inspiration for the national security system, see more closely Yuan et al. (2010), p. 71; Yang (2004), p. 6.

  75. 75.

    Martinek (2014), p. 44.

  76. 76.

    深圳经济特区涉外经济合同规定. The Shenzhen FECR were repealed by the Decision of the Standing Committee of the People’s Congress of Guangdong Province on Abolishing part of the Local Regulations Promulgated before October 1995, see Chap. 4, supra note 240.

  77. 77.

    See Wang (2002), pp. 67–68.

  78. 78.

    Regulations of the Dalian Economic and Technological Development Zone on Economic Contracts with Foreign Elements (大连经济技术开发区涉外经济合同管理办法).

  79. 79.

    The Law of the People’s Republic of China on Economic Contracts Involving Foreign Interests (中华人民共和国涉外经济合同法) was adopted by the NPCSC and promulgated on March 21, 1985. As opposed to the Chinese domestic contract law, namely the Economic Contract Law from 1981, the FECL applies to contracts concluded between Chinese enterprises and foreign companies. With the enactment of the unified Contract Law of the People’s Republic of China in 1999, the three former contract laws, namely the Economic Contract Law, the FECL and the Law on Technology Contracts from 1987 were abrogated.

  80. 80.

    See in detail Zheng (1985), p. 40; Delisle (1986), p. 281.

  81. 81.

    Article 2 of the Shenzhen FECR.

  82. 82.

    Article 2 of the FECL. The FECL was not applicable to contractual relations between FIEs (EJV, CJV), since these enterprises, being Chinese juristic persons, had to be governed by the domestic Economic Contract Law, see also Zheng (1985), pp. 40–41.

  83. 83.

    Article 5 of the FECL.

  84. 84.

    Article 9 of the Shenzhen FECR.

  85. 85.

    Zhang (1988), p. 55; Zhang and McLean (1987), pp. 126–127.

  86. 86.

    Zhang and McLean (1987), pp. 126–127.

  87. 87.

    Articles 3, 6 of the FECL; Zhang and McLean (1987), pp. 127–128.

  88. 88.

    See in detail Zheng (1985), p. 40; Delisle (1986), p. 281.

  89. 89.

    Yuan et al. (2010), pp. 70–71.

  90. 90.

    Whereas the 1986 national Enterprise Bankruptcy Law for Trial Implementation (中华人民共和国企业破产法(试行)) only applies to SOEs (Article 1), the Regulations of Shenzhen Special Economic Zone on Corporate Enterprise Bankruptcy (深圳经济特区企业破产条例) from 1993 concern all enterprise legal persons registered in the SEZ or whose domicile locate in the SEZ (Article 2), thus providing a uniform framework for all kinds of enterprises. Furthermore, the Shenzhen Regulations when defining insolvency as the inability to repay the debt that are due, adhere to the insolvency cause used in international practice, e.g. 11 U.S. Code § 101 (32) A, whereas the national Enterprise Bankruptcy Law requires criteria such as “poor operation and management that result in serious losses” (Article 3). Otherwise, the Shenzhen regulations contain detailed provisions on the authority of the court: In specific cases, the court may ex officio declare a company bankrupt without a prior application required by the national bankruptcy law. This accounts for a far more progressive content than that of its national counterpart. For more details, see more closely Li and Otto (2002), p. 24; Zhong (2012), p. 6.

  91. 91.

    The Shenzhen Municipal People’s Congress introduced a legislation that protects intellectual property rights, namely, the Regulations of Shenzhen Special Economic Zone on the Protection of Technical Secrets of Enterprises (深圳经济特区企业技术秘密保护条例) adopted in 1995 and revised in 2009, see more closely Chen (2001), p. 113.

  92. 92.

    The Regulations of Shenzhen Special Economic Zone on Informatization Construction (深圳经济特区信息化建设条例) were adopted in 1999 and amended in 2004, still effective. According to these Regulations, information on certain matters of public concern had to be provided to the public in order to guarantee government transparency. They constituted the basis for the national Regulation of the People’s Republic of China on the Disclosure of Government Information (中华人民共和国政府信息公开条例), enacted in 2007, see Huang (2012), p. 6.

  93. 93.

    In 1998, the Shenzhen SEZ adopted the nationwide first regulations on government procurement (深圳经济特区政府采购条例) which legalised the government’s purchase of goods and services from enterprises based on competitive biddings practiced in the West, see Chen and Cheng (2014), p. 98; You and Hui (2013), http://www.rmdbw.gov.cn/htmls/2013-11/04/content_193420.htm, accessed 20 December 2017. Only in 2002, the first national Government Procurement Law (中华人民共和国政府采购法) was promulgated.

  94. 94.

    Heuser and Sprick (2013), p. 129.

  95. 95.

    Heuser and Sprick (2013), p. 135.

  96. 96.

    Article 5 of the 1978 Constitution stipulated that the means of production were to be owned by the state and collectives, see also Wang (2014b), p. 45.

  97. 97.

    Wang (2014c), p. 5; Peng and Yan (2011), p. 72; Mei (2013), p. 63.

  98. 98.

    Article 4 of the EJV Law.

  99. 99.

    Article 2 of the CJV Law.

  100. 100.

    Xu and Schiwow (2006), p. 333; Lo and Tian (2005), pp. 70–71.

  101. 101.

    Potter (1993), p. 13.

  102. 102.

    The corporate system as it emerged in the SEZs also discloses that the development of the domestic corporate legal system occurred “backwards” with the foreign system being designed before the enactment of the domestic corporate framework culminating in the Company Law of 1993, see more closely Xu and Schiwow (2006), p. 331.

  103. 103.

    深圳经济特区有限责任公司条例, revised in 1997, invalidated by the Decision of the Standing Committee of the Municipal People’s Congress of Shenzhen on Abolishing the Regulations on Limited Liability Companies of Shenzhen SEZ and the Regulations of Shenzhen SEZ on Joint Stock Limited Companies (深圳市常委会关于废止<深圳经济特区股份有限公司条例>和<深圳经济特区有限责任公司条例>的决定), enacted in 2006.

  104. 104.

    Howson (1997), p. 136.

  105. 105.

    Concerning transplanting the experiences in Hong Kong to Shenzhen, see above, Sect. 3.3.5.1.1.

  106. 106.

    The immense number of joint-stock companies contributed to the trade of stocks and finally led to the official opening of the Shenzhen stock exchange in 1990.

  107. 107.

    深圳经济特区股份有限公司条例, revised in 2004, invalidated by the Decision mentioned in supra note 103.

  108. 108.

    Chen (2015), p. 628.

  109. 109.

    See also Peng and Yan (2011), p. 72; Huang (2012), p. 6; Wang (2014c), p. 5; Tan and Huang (2013), p. 52.

  110. 110.

    深圳经济特区合伙条例, invalidated by the Decision of the Standing Committee of the Municipal People’s Congress of Shenzhen on Repealing Three Special Zone Regulations including the Regulation on Enterprise Bankruptcy in the Shenzhen Special Economic Zone, see Chap. 4, supra note 321.

  111. 111.

    See also Peng and Yan (2011), p. 73; Wang (2014c), p. 8; Heuser and Sprick (2013), p. 145.

  112. 112.

    Articles 9, 10 of the Shenzhen Partnership Regulations.

  113. 113.

    Articles 9, 10 of the Shenzhen Partnership Regulations.

  114. 114.

    Article 16 of the Shenzhen Partnership Regulations.

  115. 115.

    Article 54 of the Shenzhen Partnership Regulations.

  116. 116.

    Article 57 of the Shenzhen Partnership Regulations.

  117. 117.

    The limited partnership 有限合伙 can be compared to the German Kommanditgesellschaft, see Heuser and Sprick (2013), p. 145.

  118. 118.

    The Partnership Enterprise Law of the People’s Republic of China (中华人民共和国合伙企业法) was adopted by the NPCSC on February 23, 1997.

  119. 119.

    For an overview on partnership law, see Chen (2015), pp. 653–655.

  120. 120.

    Wang (2014b), p. 44.

  121. 121.

    The Partnership Enterprise Law (中华人民共和国合伙企业法) was amended on August 27, 2006. Wang (2014c), p. 8; Heuser and Sprick (2013), pp. 145–146; Zhong (2012), pp. 5–6.

  122. 122.

    Article 2 of the 2006 Partnership Enterprise Law.

  123. 123.

    深圳经济特区律师条例.

  124. 124.

    Yang (2004), p. 8; Peng and Yan (2011), p. 73. The scholar Feng Yang emphasizes that the Shenzhen Regulations on Lawyers also aimed at privatizing the legal profession, see Feng (2016), p. 165.

  125. 125.

    Wang (2014c), p. 12; Li and Otto (2002), p. 24; Yang (2004), p. 8.

  126. 126.

    Li (2014), p. 203.

  127. 127.

    Li (2014), p. 203.

  128. 128.

    The Interim Regulations of the PRC on Lawyers (中华人民共和国律师暂行条例) were adopted and promulgated on August 26, 1980.

  129. 129.

    Article 1 of the PRC Interim Regulations on Lawyers.

  130. 130.

    Philipsen (2007), p. 130; Ning (2013), http://www.ibanet.org/Article/Detail.aspx?ArticleUid=cefd56f7-0788-47d1-851c-781f532bf54c, accessed 20 December 2017.

  131. 131.

    Komaiko and Que (2009), p. 41.

  132. 132.

    Komaiko and Que (2009), p. 41.

  133. 133.

    Article 2 of the Shenzhen Lawyers Regulations.

  134. 134.

    Wang (2014c), p. 12.

  135. 135.

    In contrast to the national provisions, Article 32 (11) of the Shenzhen Lawyers Regulations allows lawyers to record testimonies involving foreign affairs.

  136. 136.

    Conner (2010), p. 289.

  137. 137.

    For more details, see Conner (2010), p. 289.

  138. 138.

    Wang (2014c), p. 12.

  139. 139.

    The Lawyers’ Law of the People’s Republic of China (中华人民共和国律师法) was adopted in 1996 and entered into force in 1997. Article 2 replicates the definition of a lawyer used in the Shenzhen Lawyers Regulations. Concerning the improvement of the situation of defense lawyers who always had to fear criminal prosecution, it was only in the 2007 amendment to the Lawyers’ Law that—modelled after Article 4 (2) of the Shenzhen Regulations—lawyers cannot be prosecuted for opinions presented in court, see Conner (2010), p. 289.

  140. 140.

    Cf. Song (2004), p. 66; Wang (2014c), p. 5.

  141. 141.

    Article 4 (2) of the 2001 Regulations on the Enactment of Statutes.

  142. 142.

    Article 6 (1) of the 2001 Regulations on the Enactment of Statutes.

  143. 143.

    See above, Sect. 4.2.2.3.3.

  144. 144.

    See above, Sect. 2.2.3.3.5.

  145. 145.

    In 2001, the People’s Government of Shenzhen City enacted the far-reaching Administrative Rules of Shenzhen Municipality on Land Transaction Market (深圳市土地交易市场管理规定) which draw upon the experiences made in Shenzhen SEZ with regard to the system of compensatory usage of land. The Administrative Rules which apply to the whole city constitute a further step in the establishment of a land trading market: All transactions in land use rights must take place publicly in the land market, see more closely Xie (2007), p. 60. Furthermore, in 2007 the Decision of the Standing Committee of the Shenzhen Municipal People’s Congress on Several Issues of Strengthening of the Civil Execution of the People’s Court was enacted (深圳市人大常委会关于加强人民法院民事执行工作若干问题的决定). This decision, being adopted on the basis of general local legislative power is a precedent in exploring new ways for executing civil judgments: Citizens, legal entities and other organizations shall execute “on their own initiative” civil judgments which already had legal effects. Yet, the decision clearly touches upon a matter that falls under the exclusive jurisdiction of national law instead of local law, namely the litigation process in the sense of Article 8 No 9 of the Legislation Law 2000.

  146. 146.

    See above, Sect. 3.2.2.3.

  147. 147.

    Zhang (2015), pp. 302–317.

  148. 148.

    Chen (2001), pp. 112–113.

  149. 149.

    Yuan et al. (2010), p. 58.

  150. 150.

    深圳经济特区高新技术产业园区条例, revised in 2006.

  151. 151.

    Zhong (2012), p. 8.

  152. 152.

    Zhong Xiaoyu states that Shenzhen SEZ has, by enacting numerous regulations on managing construction projects such as Regulations on Energy Saving for Buildings (深圳经济特区建筑节能条例) or the Regulations on the Environmental Protection of Construction Projects (深圳经济特区建设项目环境保护条例), set an example for nationwide reform and opening up of the construction market, see Zhong (2012), p. 8.

  153. 153.

    深圳经济特区人体器官捐献移植条例.

  154. 154.

    You and Hui (2013), http://www.rmdbw.gov.cn/htmls/2013-11/04/content_193420.htm, accessed 20 December 2017.

  155. 155.

    人体器官移植条例. These Regulations were adopted by the State Council on March 21, 2007.

  156. 156.

    深圳经济特区改革创新促进条例.

  157. 157.

    珠江三角洲地区改革发展规划纲要; see also Chen and Huang (2010), p. 6.

  158. 158.

    Qin (2010), http://cpc.people.com.cn/GB/64093/82429/83083/12663705.html, accessed 20 December 2017; Chen (2014), p. 141.

  159. 159.

    Chen (2014), p. 141.

  160. 160.

    Qin (2010), http://cpc.people.com.cn/GB/64093/82429/83083/12663705.html, accessed 20 December 2017.

  161. 161.

    See supra note 93.

  162. 162.

    The Regulations of Shenzhen Special Economic Zone on Auditing Supervision (深圳经济特区审计监督条例), adopted in 2001 and amended in 2014, required the government to carry out performance audits to improve administrative efficiency, see Yuan et al. (2010), p. 72.

  163. 163.

    Qin (2010), http://cpc.people.com.cn/GB/64093/82429/83083/12663705.html, accessed 20 December 2017.

  164. 164.

    深圳经济特区档案与文件收集利用条例.

  165. 165.

    The Archives Law of the PRC (中华人民共和国档案法) has been issued by the NPCSC in 1987 and has been amended in 1996 and 2016.

  166. 166.

    Article 22 of the Shenzhen Archives Regulations from 2002/Article 21 of the Shenzhen Archives Regulations from 2017.

  167. 167.

    Article 25 of the Shenzhen Archives Regulations from 2002/Article 24 of the Shenzhen Archives Regulations from 2017.

  168. 168.

    Wang (2014c), p. 11.

  169. 169.

    The WTO principle of transparency was enunciated in Article 2 (C) (1) of China’s Accession Protocol. Since a WTO member has to adjust its domestic legislation in order to comply with WTO requirements, the WTO principle of transparency also plays a role in the reform of China’s administrative law. A comprehensive compliance with WTO obligation requires openness of government informatization, see Liu (2011), p. 990; Chen (2008), p. 13.

  170. 170.

    “Shenzhen’s own work in carrying out the local work surrounding WTO accession” accelerated the transformation of government function and the whole process of opening up to the outside world in general, see Zhang (2015), p. 302.

  171. 171.

    China Daily (2009), http://www.chinadaily.com.cn/business/2010-09/01/content_11240345.htm, accessed 20 December 2017.

  172. 172.

    Zhong (2012), p. 8.

  173. 173.

    China Daily (2009), http://www.chinadaily.com.cn/business/2010-09/01/content_11240345.htm, accessed 20 December 2017.

  174. 174.

    深圳经济特区和谐劳动关系促进条例.

  175. 175.

    China Labour Bulletin (2008), http://www.clb.org.hk/en/content/new-shenzhen-labour-regulations-offer-hope-future, accessed 20 December 2017.

  176. 176.

    Zhong (2012), p. 8; Liu et al. (2011), p. 287; Tan and Huang (2013), pp. 52–53.

  177. 177.

    The Trade Union Law of the PRC (中华人民共和国工会法) was adopted on April 3, 1992 and amended in 2001 and 2009.

  178. 178.

    Brown (2012), p. 483.

  179. 179.

    Liu et al. (2011), p. 287; China Labour Bulletin (2008), http://www.clb.org.hk/en/content/new-shenzhen-labour-regulations-offer-hope-future, accessed 20 December 2017.

  180. 180.

    This again shows Shenzhen’s openness for foreign legal models, see also Tan and Huang (2013), p. 53.

  181. 181.

    Brown (2012), p. 483. Even though strikes frequently occur in China—in Guangdong, for example, there were 412 strikes in 2015—there is no legal right to strike in China. The 1975 and 1978 Constitutions granted workers the right to strike but the 1982 Constitution, however, while ensuring the right to work (Article 42), the right to rest (Article 43) and freedom of assembly (Article 35), deletes the right to strike, see Lo (1999), p. 91.

  182. 182.

    Liu et al. (2011), p. 287; Wang (2014c), p. 11.

  183. 183.

    Wang (2014c), p. 11.

  184. 184.

    See also China Labour Bulletin (2008), http://www.clb.org.hk/en/content/new-shenzhen-labour-regulations-offer-hope-future, accessed 20 December 2017; Liu et al. (2011), p. 287.

  185. 185.

    China Labour Bulletin (2008), http://www.clb.org.hk/en/content/new-shenzhen-labour-regulations-offer-hope-future, accessed 20 December 2017.

  186. 186.

    Tan and Huang (2013), p. 52.

  187. 187.

    Zhong (2012), p. 8; Tan and Huang (2013), pp. 52–53.

  188. 188.

    Yuan et al. (2010), p. 58.

  189. 189.

    Yeung (2015), pp. 9–10; Chen (2001), pp. 112–113. Zhang Jinsheng notes that Shenzhen’s investment in research and development, from all sectors of the economy, now (2015) constitutes 3.4% of its GDP, see Zhang (2015), p. 303. According to Feng Yang, legislating for hi-tech industry has become one of the main concerns of Shenzhen SEZ lawmakers, see Feng (2017), p. 599.

  190. 190.

    深圳经济特区企业技术秘密保护条例, supra note 91.

  191. 191.

    You (2008), http://www.sd-law.gov.cn/xzlfggdt/11053.jhtml, accessed 20 December 2017; Zhang (2015), p. 303. According to Zhang Jinsheng, the value of high-tech products holding proprietary intellectual property rights amounts to over 60% of Shenzhen’s GDP.

  192. 192.

    深圳经济特区加强知识产权保护工作若干规定. These Provisions are being slightly revised, since the existing level of intellectual property protection can no longer match the current strength of innovation in Shenzhen. For example, the penalties for infringement of intellectual property have been drastically increased, see more closely Standard Patent & Trademark Agent Ltd. (2016), http://www.szstd.com/cn/news/view.asp?id=1660, accessed 26 December 2017.

  193. 193.

    According to section 3 of the General Principles of Civil Law, intellectual property rights (知识产权) include the copyrights (Article 94), patent rights (Article 95), rights to exclusive use of trademarks (Article 96) and the rights of discovery (Article 97), all regulated in separate provisions. In the recently adopted General Provisions of Civil Law from October 2017, only Article 123 concerns intellectual property right. He Hua and Xiao Zhiyuan argue that despite the progress in the content (individuals now enjoy new privacy and data protection with regard to online activities) the legislator should consider the need for a separate codification of intellectual property rights, see He and Xiao (2017), p. 23.

  194. 194.

    zhishi chanquan baohu xinxi gongxiang xiansuo tongbao zhidu 知识产权保护信息共享和线索通报制度.

  195. 195.

    zhishi chanquan chengxin dangan 知识产权诚信档案.

  196. 196.

    See more closely Ministry of Commerce of the People’s Republic of China (2013), http://english.mofcom.gov.cn/article/newsrelease/press/201312/20131200428920.shtml, accessed 22 December 2017. This report on “Combating IPR Infringement and Counterfeits” refers to the successful methods of intellectual property protection that have been used in Guangzhou and Shenzhen.

  197. 197.

    Ministry of Commerce of the People’s Republic of China (2013), http://english.mofcom.gov.cn/article/newsrelease/press/201312/20131200428920.shtml, accessed 22 December 2017.

  198. 198.

    中华人民共和国民事诉讼法.

  199. 199.

    You (2008), http://www.sd-law.gov.cn/xzlfggdt/11053.jhtml, accessed 20 December 2017; Wang (2014c), p. 10.

  200. 200.

    You (2008), http://www.sd-law.gov.cn/xzlfggdt/11053.jhtml, accessed 20 December 2017; Wang (2014c), p. 10.

  201. 201.

    It is not unlikely that the Shenzhen Regulations in this regard draw upon and experiment with the discovery-process used in US procedure law, see Capowski (2012), pp. 462–504.

  202. 202.

    Ma (2014), p. 74.

  203. 203.

    South China Morning Post (2010), http://www.scmp.com/article/715866/shenzhen-allowed-turn-entire-city-special-zone, accessed 20 December 2017.

  204. 204.

    With regard to the “zone fever”, see above, Sects. 3.2.2.5 and 3.2.2.6.

  205. 205.

    Yang (2010), http://www.eeo.com.cn/ens/Politics/2010/08/11/177964.shtml, accessed 20 December 2017; Tan and Huang (2013), p. 51.

  206. 206.

    This is particularly exemplified by Shenzhen’s Good Samaritan Law elaborated upon in Sect. 6.2.2.2.1. Despite the designation “Shenzhen jingji tequ” and its overriding of mandatory provisions of the Legislation Law, it is based on general local legislative power.

  207. 207.

    The Commercial Ordinance of Shenzhen Special Economic Zone (深圳经济特区商事条例) was adopted by the Standing Committee of the People’s Congress of Shenzhen Municipality on June 30, 1999 and was amended in 2004. It was annulled on December 25, 2013.

  208. 208.

    深圳经济特区商事登记若干规定; see also Sect. 4.2.5.3.1.

  209. 209.

    Kim (2014), p. 68.

  210. 210.

    The German Commercial Code is also based on the key concept of a merchant.

  211. 211.

    Kim (2014), pp. 68–69.

  212. 212.

    Kim (2014), p. 69.

  213. 213.

    Articles 16–19 of the Commercial Ordinance only concern unlimited liability business persons. Only Article 20 explicitly refers to limited liability companies.

  214. 214.

    E.g. for submitting false registration certification documents (Article 13) or for concealing debts (Article 18 clause 3), fines will be imposed.

  215. 215.

    See above, Sect. 4.2.5.3.1.

  216. 216.

    See more closely Notice of the Shanghai Administration for Industry and Commerce on Issuing the Provisions on the Administration of Enterprise Registration in China (Shanghai) Pilot Free Trade Zone (上海市工商行政管理局关于印发《关于中国(上海)自由贸易试验区内企业登记管理的规定》的通知), issued on September 30, 2013.

  217. 217.

    Article 4 of the Shanghai Provisions.

  218. 218.

    Article 7, Article 32 of the revised Company Law. Based on Article 8 of the Shenzhen Provisions on Commercial Registration and according to Article 32 of the revised Company Law, the registry no longer records information on the company’s registered capital.

  219. 219.

    Article 77 No 2, Article 81 of the 2005 Company Law.

  220. 220.

    Article 6 of the Shanghai Provisions; Article 23 No 2, Article 26 of the 2013 Company Law.

  221. 221.

    Article 6 of the Shanghai Provisions stipulates that the provisions on the amount and the proportion of initial contributions from all shareholders in the formation of a company shall be cancelled. Article 27 clause 3 of the 2005 Company Law stating that the amount of capital contributions paid by all the shareholders shall be no less than 30% of the registered capital of the limited liability has been eradicated by the amended version of the Company Law.

  222. 222.

    Zou et al. (2014), pp. 9114–9115; Liao (2013), http://www.eeo.com.cn/2013/0128/239416.shtml, accessed 20 December 2017.

  223. 223.

    Article 8 of the Land Administration Law from 2004; Article 10 (1), (2) of the Constitution; concerning the dual-track system of land ownership, see Liu and Liang (2015), pp. 24–25.

  224. 224.

    The term “collective economic organization” mentioned, for example, in Article 8 of the Constitution, is not defined in Chinese law. One could draw a parallel to an agricultural production cooperative used in former East Germany and the USSR. With regard to the collective’s ownership in general, see Qiao (2015b), p. 292.

  225. 225.

    Article 8 clause 3 of the Constitution. According to Qiao Shitong, the property regime in rural China is a tri-party model: the village collective exercises ownership, individual households enjoy use rights, and the right to develop rural land belongs to the state, see Qiao (2015b), p. 291.

  226. 226.

    According its usage, rural land is classified into land for farm use, land for construction use and unused land, see Article 4 of the Land Administration Law.

  227. 227.

    Article 44 (1), Article 63 of the Land Administration Law.

  228. 228.

    Cf. Qiao (2014), p. 255.

  229. 229.

    Zou et al. (2014), p. 9117.

  230. 230.

    Zou et al. (2014), p. 9117.

  231. 231.

    Qiao (2015b), p. 293; Zou et al. (2014), p. 9117.

  232. 232.

    Qiao (2014), p. 258; Huang et al. (2017), pp. 123–124.

  233. 233.

    With regard to the phenomenon of “urban villages”, see Hao (2012), p. 2; Ai et al. (2015), p. 92.

  234. 234.

    Liao (2013), http://www.eeo.com.cn/2013/0128/239416.shtml, accessed 20 December 2017.

  235. 235.

    Qiao (2014), p. 255.

  236. 236.

    See Qiao (2014), p. 255.

  237. 237.

    Qiao (2015a), p. 2; Kan (2012), p. 77.

  238. 238.

    Kan (2012), p. 77.

  239. 239.

    Ai et al. (2015), p. 91; The World Bank and Development Research Center of the State Council, People’s Republic of China (2014), pp. 300–302.

  240. 240.

    See Management Measures on Urbanized Land in Bao’an and Longgan Districts of Shenzhen City from June 26, 2004 (深圳市宝安龙岗两区城市化土地管理办法); The World Bank and Development Research Center of the State Council, People’s Republic of China (2014), p. 300; Ai et al. (2015), p. 91.

  241. 241.

    China Daily (2004), http://www.chinadaily.com.cn/english/doc/2004-07/02/content_345068.htm, accessed 20 December 2017; Wang (2012), p. 12.

  242. 242.

    The World Bank and Development Research Center of the State Council, People’s Republic of China (2014), p. 300.

  243. 243.

    Kan (2012), p. 78; Qiao (2015b), p. 295.

  244. 244.

    中共中央关于推进农村改革发展若干重大问题的决定, still effective.

  245. 245.

    Zou et al. (2014), p. 9119.

  246. 246.

    On February 29, 2012, the Comprehensive Plan to Reform the Land Management of Shenzhen City (深圳市土地管理制度改革总体方案) was approved and backed by the Ministry of Land and Resources and the Guangdong provincial government, and on May 25, 2012, the Plan was officially announced.

  247. 247.

    See also The World Bank and Development Research Center of the State Council, People’s Republic of China (2014), p. 301.

  248. 248.

    Yang and Jiang (2012), p. 18.

  249. 249.

    Yang and Jiang (2012), p. 18.

  250. 250.

    深圳市人民政府优化空间资源配置促进产业转型升级的意见.

  251. 251.

    The World Bank and Development Research Center of the State Council, People’s Republic of China (2014), p. 301.

  252. 252.

    The World Bank and Development Research Center of the State Council, People’s Republic of China (2014), p. 301.

  253. 253.

    Wang (2014a), http://english.caijing.com.cn/2014-01-21/113844646.html, accessed 20 December 2017.

  254. 254.

    The World Bank and Development Research Center of the State Council, People’s Republic of China (2014), p. 301.

  255. 255.

    Sito (2013), http://www.scmp.com/property/hong-kong-china/article/1371996/first-parcel-chinas-collective-rural-land-shenzhen-auction, accessed 20 December 2017; Liu (2014), pp. 72–73.

  256. 256.

    Liao (2013), http://www.eeo.com.cn/2013/0128/239416.shtml, accessed 20 December 2017.

  257. 257.

    Sito (2013), http://www.scmp.com/property/hong-kong-china/article/1371996/first-parcel-chinas-collective-rural-land-shenzhen-auction, accessed 20 December 2017.

  258. 258.

    Wang (2012), p. 12.

  259. 259.

    Wang (2012), p. 12.

  260. 260.

    Liao (2013), http://www.eeo.com.cn/2013/0128/239416.shtml, accessed 20 December 2017. Qu Weidong emphasizes that along with China’s urbanisation developing at an annual rate of 1% in the next 20 years, rural land management must participate in economic reform, see Qu (2017), p. 117.

  261. 261.

    Wang (2014a), http://english.caijing.com.cn/2014-01-21/113844646.html, accessed 20 December 2017; Min (2016), http://www.szdaily.com/content/2016-02/01/content_12790818.htm, accessed 20 December 2017.

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    Liao (2013), http://www.eeo.com.cn/2013/0128/239416.shtml, accessed 20 December 2017.

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    Madeleine Martinek

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Martinek, M. (2018). Major Achievements in Experimenting with Novel Regulatory Approaches. In: Experimental Legislation in China between Efficiency and Legality. Springer, Cham. https://doi.org/10.1007/978-3-319-77616-3_5

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