The NPC Standing Committee (NPCSC) concluded another busy session on Thursday, June 10 with the adoption of eight bills. Two of themāthe AntiāForeign Sanctions Law [åå¤å½å¶č£ę³] and the Data Security Law [ę°ę®å®å Øę³]āhave already received worldwide attention and are sure to generate additional commentary in the days and weeks to come. Rather than adding duplicative coverage (beyond our Twitter thread on the sanctions law), we will try something new in this post-session recap. We will steer clear of the two blockbuster bills and will instead focus on two themes found in last weekās other legislation that may have escaped your attention.
Broader Legislative Authority for Shanghai & Hainan
The types of Chinese legislation grew by two on Thursday as the NPCSC granted broader legislative power to Shanghai and Hainan Province.
First, the NPCSC adopted a decision authorizing the Shanghai legislature to enact āPudong New Area regulationsā [굦äøę°åŗę³č§] for the megacityās sprawling Pudong New Area, home to one of Chinaās financial hubs. Such regulations must be based on āthe practical needs for reform and innovation in Pudongā and follow constitutional provisions as well as the ābasic principlesā of statutes and the State Councilās administrative regulations. So long as they meet those requirements, Pudong New Area regulations may āadaptā [åé] the provisions of statutes, administrative regulations, and departmental rules (issued by State Council agencies). In other words, they may conflict with national legislation as long as they follow the ābasic principlesā of statutes and administrative regulations. And such āadaptive provisionsā will trump conflicting national legislation within Pudong.
The NPCSCās decision broadens the Shanghai legislatureās authority because ordinary local legislation must not contradict statutes or administrative regulations. This greater legislative authority is said to have been modeled on the authority of localities encompassing Special Economic Zones (SEZs)āthe four cities of Shenzhen, Zhuhai, Shantou, and Xiamen, and Hainan Provinceāto enact āSEZ regulationsā [ē»ęµē¹åŗę³č§]. SEZ regulations, too, can āadaptā (i.e., contradict) statutes and administrative regulations as long as they follow their ābasic principles.ā
To illustrate, consider Shenzhen SEZās food safety regulations. A provision permits the cityās food-safety and consumer-protection agencies to stop investigating a food-safety complaint if they discover that the complainant is a so-called āprofessional fraud-fighterāāsomeone who knowingly buys products with food-safety violations, files complaints, and relies on the resulting compensation or rewards as the main source of income. (The agencies must still consider such complaints in monitoring food-safety risks.) The national Food Safety Law [é£åå®å Øę³] requires, however, that food-safety agencies investigate all complaints without exception. Yet Shenzhenās regulations were ruled as a permissible exercise of the cityās legislative power as an SEZ.
Second, the new Hainan Free Trade Port Law [ęµ·åčŖē±č“øęęøÆę³] authorizes the Hainan legislature to enact āHainan Free Trade Port regulationsā [ęµ·åčŖē±č“øęęøÆę³č§] for the Hainan Free Trade Port (FTP), which covers the entire Hainan Island. This grant is both narrower and broader than the NPCSCās grant of authority to Shanghai. It is narrower because the Law imposes subject-matter limitations on Hainan FTP regulations. They must concern ātrade, investments, and related regulatory activitiesā and be based on the āactual circumstances and practical needs of building the Hainan FTP.ā (Like Pudong New Area regulations, they may also āadaptā the provisions of statutes and administrative regulations so long as they do not contravene their basic principles.)
The grant to Hainan is at the same time more expansive, because for the first time a local legislature is allowed to legislate on matters within the NPC(SC)ās or State Councilās exclusive authority (subject to the latterās approval). The NPC and the NPCSC, for instance, have the exclusive authority to enact new taxes or create new crimes. Now, with the NPCSCās approval, Hainan may do so as well. The NPCSCās and the State Councilās veto may appear a significant limitation on Hainanās new power, but there is a reason to believe their approval would be no more than a formality, given the central leadershipās strong support for Hainan FTP to experiment with new policies and “open up at the highest level.”
Thus, since the Hainan FTP Law came into effect last Thursday, the Hainan peopleās congress and its standing committee have become the only local legislature in China that wields three kinds of legislative power: Like all other local legislatures, it may enact local regulations [å°ę¹ę§ę³č§], but as the legislature with jurisdiction over the (overlapping) Hainan SEZ and Hainan FTP, it may adopt SEZ regulations and Hainan FTP regulations as well.
New Areas for Procuratorial Public Interest Litigation
In two other bills adopted on Thursday, the NPCSC authorized the procuratorates to file public interest lawsuits in two new areas: workplace safety and military personnel protection.
Public interest litigation by the procuratorates is a relatively new practice originating in late 2014, when the Communist Party decided to explore the establishment of such a system. In July 2015, the NPCSC authorized the Supreme Peopleās Procuratorate to pilot this type of litigation in a few provinces for two years. Then on July 1, 2017, the pilot’s expiration date, amendments to the Civil Procedure Law [ę°äŗčÆč®¼ę³] and the Administrative Litigation Law [č”ęæčÆč®¼ę³] took effect, codifying the procuratoratesā new authority.
Chinese law differentiates between two types of public interest litigation: civil lawsuits against private entities for conduct harming the public interest; and administrative lawsuits against administrative agencies for unlawful action or inaction that harms the public interest. Civil public interest litigation initially covered only environmental protection and resource conservation as well as food and drug safety. Administrative public interest litigation was first limited to the same two areas, plus state-owned assets protection and transfer of state-owned land use rights. The 2017 amendments did also leave room for introducing new areas in the future.
The NPCSC did so last week. The new Law on the Protection of the Status, Rights, and Interests of Military Personnel [åäŗŗå°ä½åęēäæéę³] (effective Aug. 1, 2021) allows the procuratorates to bring public interest lawsuits against those who āinfringe on military personnelās honor, reputation, and other relevant lawful rights and interests,ā thereby āseriously affecting the effective fulfillment of their obligations and mission and harming the societal public interestā (art. 61). The new amendment to the Workplace Safety Law [å®å Øēäŗ§ę³] (effective Sept. 1, 2021) extends public interest litigation to workplace safety violations that āresult in risks of major accidents or in major accidents,ā thus harming āthe Stateās interest or the societal public interestā (art. 74, para. 2 as amended).
These two provisions came after the Party had decided in late 2019 to widen the scope of public interest litigation. Before last week, the NPCSC had already twice broadened the procuratoratesā mandate. The 2018 Heroes and Martyrs Protection Law [č±éē士äæę¤ę³] authorizes them to sue over conduct infringing on āthe heroes and martyrsā name, likeness, reputation, or honor that harms the societal public interest.ā More recently, the revised Minors Protection Law [ęŖę幓äŗŗäæę¤ę³] that took effect on June 1 permits the procuratorates to file public interest lawsuits when āthe lawful rights and interest of minors are infringed uponā and āthe public interest is implicated.ā
The procuratoratesā power to initiate public interest litigation will likely continue to grow in the near future. The pending Personal Information Protection Law [äøŖäŗŗäæ”ęÆäæę¤ę³] (likely to pass within the year) includes a provision allowing them to sue personal information handlers who unlawfully handle personal information, thereby āinfringing on the rights and interest of a large number of individuals.ā Procuratorates nationwide, moreover, are experimenting with public interest lawsuits in new non-statutory areas, such as disability rights, womenās rights, public health, and poverty alleviation. Some of them could soon be codified as well.
On Thursday, the NPCSC also approved the Stamp Tax Law [å°č±ēØę³], effective July 1, 2022; and a revised Military Facilities Protection Law [åäŗč®¾ę½äæę¤ę³], effective August 1, 2021. We unfortunately are not able to provide summaries of them for lack of time and expertise.
Taige Hu contributed research
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