On July 18, the Communist Party’s 20th Central Committee at its Third Plenum adopted the Decision on Further Deepening Reform Comprehensively to Advance Chinese-Style Modernization (Decision)1 [关于进一步全面深化改革 推进中国式现代化的决定], which was made public on Sunday, July 21. (Here is a bilingual version of the Decision in PDF and HTML.) The day after the Plenum, the Party Group of the NPC Standing Committee (NPCSC) met to study the Decision and other documents from the Plenum. The meeting hailed the Decision as a “programmatic document” [纲领性文件] for further reforms and called on the NPC apparatus to, consistent with the NPC’s functions and responsibilities, “take solid steps to advance the legislative, oversight, and other tasks and initiatives ordered by the Plenum.” Such tasks and initiatives fall into three slightly overlapping categories: (1) reforms of the NPC itself and local people’s congresses; (2) explicit legislative tasks for the NPC; and (3) other reforms that would require NPC action to implement. Although Xi Jinping has reportedly instructed that the Decision not include any “general reform measures, developmental measures, or reform measures that central authorities had already deployed and were being implemented,” that has not always been the case—at least for those NPC-related reforms. And finally, the Decision notably sets 2029, when the PRC celebrates its 80th anniversary, as the deadline for completing its myriad reform tasks. Below we take a brief look at each of the three categories of NPC-related reforms by excerpting from the Decision and supplementing with our commentaries.
Reforms of the NPC
Reforms of the people’s congresses appear in two consecutive sections of the Decisions on, respectively, “whole-process people’s democracy” and “socialist rule of law with Chinese characteristics.” Reforms in the first section focus on the people’s congresses’ representative and oversight functions, whereas those in the latter center on their legislative role and the NPC’s unique role in enforcing the Constitution.
| 八、健全全过程人民民主制度体系 …… （29）加强人民当家作主制度建设。坚持好、完善好、运行好人民代表大会制度。健全人大对行政机关、监察机关、审判机关、检察机关监督制度，完善监督法及其实施机制，强化人大预算决算审查监督和国有资产管理、政府债务管理监督。健全人大议事规则和论证、评估、评议、听证制度。丰富人大代表联系人民群众的内容和形式。健全吸纳民意、汇集民智工作机制。…… | VIII. Advancing Whole-Process People’s Democracy . . . . (29) Strengthening the institutions through which the people run the country. We must uphold, improve, and implement the system of people’s congresses to good effect. We will [1] improve the systems under which the people’s congresses conduct oversight of the administrative, supervision, adjudicatory, and procuratorial organs, refine the Law on Oversight by the Standing Committees of People’s Congresses [Oversight Law] and the mechanisms for its implementation, and [2] strengthen the examination and oversight of government budgets and final accounts by people’s congresses as well as their oversight of state-owned asset and government debt management. [3] We will improve the rules of procedure for people’s congresses and their debate, assessment, discussion, and hearing systems. We will see that deputies to people’s congresses reach out to the public on a greater variety of issues and in more diverse ways and enhance the working mechanisms for drawing on public opinion and pooling the wisdom of the people. . . . |
The following new reform measures in this paragraph deserve some attention.
[1] The Decision calls for “refining” the Oversight Law, a landmark 2006 statute governing the ways in which the standing committees of the people’s congresses conduct oversight, such as hearing specialized work reports and inspecting the enforcement of their legislation. Draft amendments to the Oversight Law are in fact pending before the NPCSC and have been scheduled for a second review in October. [2] Over the years, the NPCSC has supplemented the Oversight Law with separate instruments setting forth more detailed rules for its oversight of the central budget, national economic policy, and management of state-owned assets. The rules on state-owned assets oversight were enacted in 2020 and those on budgetary oversight were overhauled a few months thereafter, so it is interesting that the Decision again calls for “strengthening” those two areas of oversight. The document also lists government debt, an issue that has so far been subsumed under budgetary oversight but will likely receive special attention going forward. Next month, in fact, the NPCSC will hear the State Council’s inaugural report on the management of government debt. We expect local people’s congresses to follow suit, and the NPCSC might eventually adopt separate rules on the oversight of government debt as well. [3] Both the NPC (in 2021) and the NPCSC (in 2022) have recently amended their rules of procedure. The amendments to the latter’s rules, in particular, codified important reforms to “enhance the NPCSC’s capacity as a lawmaking and oversight body.” Based on a cursory search of the pkulaw.com database, local people’s congresses soon updated their procedural rules as well. It is thus interesting that the Decision again calls for “improving the rules of procedure for people’s congresses.” The document also focuses on the role of people’s congresses as fora for stakeholders (including the public at large) to voice their views and to build consensus in the legislative process through debates, assessments, discussions, and hearings. This could potentially revitalize legislative hearings at the NPC—first and last held in 2005—and may lead to further standardization and institutionalization of those consultative methods.| 九、完善中国特色社会主义法治体系 …… （33）深化立法领域改革。完善以宪法为核心的中国特色社会主义法律体系，健全保证宪法全面实施制度体系，建立宪法实施情况报告制度。完善党委领导、人大主导、政府依托、各方参与的立法工作格局。统筹立改废释纂，加强重点领域、新兴领域、涉外领域立法，完善合宪性审查、备案审查制度，提高立法质量。……建设全国统一的法律法规和规范性文件信息平台。 | IX. Promoting Socialist Rule of Law with Chinese Characteristics . . . . (33) Deepening reforms in legislation. The socialist legal system with Chinese characteristics centered on the Constitution will be improved. [1] We will refine the systems for ensuring full enforcement of the Constitution and establish a system for reporting on its enforcement. We will improve the legislative framework under which Party committees exercise leadership, people’s congresses play a principal role, government departments provide support, and various sectors of society get involved. We will make sure that steps to enact, revise, abolish, interpret, and codify laws are well-coordinated and work to bolster legislation in key, emerging, and foreign-related areas. [2] We will improve both the constitutional review system and the system of recording and review for normative documents. These efforts will ensure that the quality of legislation further improves. . . . [3] A unified national information platform for laws, regulations, and other normative documents will be created. |
Explicit Legislative Tasks for the NPC
The Decision expressly names seven laws that will be enacted or amended by 2029 (or at least enter legislative deliberations by then). We have already mentioned the Oversight Law amendments; for the other six projects, we will reproduce the relevant text of the Decision and briefly note any public information on each project.
(5) Upholding and fulfilling the commitments to the public and non-public sectors. . . .
We will continue to implement principles and policies that help foster a favorable environment and create more opportunities for the development of the non-public sector. We will formulate a Private Sector Promotion Law. We will do more to remove barriers to market access, work to see that the competitive areas of infrastructure are open to market entities in a fair manner, and improve the long-term mechanism by which private enterprises participate in major national projects. We will support capable private enterprises in leading national initiatives to make breakthroughs in major technologies and provide private enterprises with greater access to major national scientific research infrastructure. We will refine financing support policies and systems for private enterprises to resolve the difficulties they face in accessing affordable financing. We will improve the legal framework for the long-term regulation of charges levied on enterprises and for clearing overdue payments owed to them. We will move faster to set up a system for comprehensively evaluating private enterprises’ credit status and refine the credit enhancement system for small and medium private enterprises. We will support and guide private enterprises in improving their governance structures and management systems, building up compliance capacity, and better preventing corruption-related risks. We will strengthen ongoing and ex post oversight and regulate administrative inspections on private enterprises.
（5）坚持和落实“两个毫不动摇”。
……
坚持致力于为非公有制经济发展营造良好环境和提供更多机会的方针政策。制定民营经济促进法。深入破除市场准入壁垒，推进基础设施竞争性领域向经营主体公平开放，完善民营企业参与国家重大项目建设长效机制。支持有能力的民营企业牵头承担国家重大技术攻关任务，向民营企业进一步开放国家重大科研基础设施。完善民营企业融资支持政策制度，破解融资难、融资贵问题。健全涉企收费长效监管和拖欠企业账款清偿法律法规体系。加快建立民营企业信用状况综合评价体系，健全民营中小企业增信制度。支持引导民营企业完善治理结构和管理制度，加强企业合规建设和廉洁风险防控。加强事中事后监管，规范涉民营企业行政检查。
The drafting of a Private Sector Promotion Law had begun by February 2024 and, as of July 2024, a draft has been produced, Caixin reports. The NPCSC has scheduled the bill for an initial review in 2024. The project was not included in the 14th NPCSC’s five-year legislative plan, but has been fast-tracked in part because of several NPC delegate bills and a proposal by the All-China Federation of Industry and Commerce submitted during the 2023 “Two Sessions.”
(18) Deepening reform of the financial system. . . .
A Finance Law will be formulated. We will improve the financial regulatory system to ensure that all financial activities are placed under regulation in accordance with the law, strengthen regulatory responsibility and accountability systems, and improve regulatory coordination between the central and local levels. . . .
（18）深化金融体制改革。
……
制定金融法。完善金融监管体系，依法将所有金融活动纳入监管，强化监管责任和问责制度，加强中央和地方监管协同。……
The proposed Finance Law has been hinted at by the NPCSC’s 2024 legislative plan, which includes a back-up project to research “a comprehensive law on finance covering matters including financial regulatory schemes” without settling on a title. China has enacted laws regulating specific industries in the financial sector, such as the Commercial Banks Law [商业银行法] and Insurance Law [保险法], and there is a consensus that the Finance Law will function as a “basic law” for the sector.
(32) Building a broad united front. . . . A Law on Promoting Ethnic Solidarity and Progress will be formulated, and we will take steps to improve the institutions and mechanisms for forging a strong sense of community for the Chinese nation so as to further strengthen our national cohesion. . . .
（32）完善大统战工作格局。……制定民族团结进步促进法，健全铸牢中华民族共同体意识制度机制，增强中华民族凝聚力。……
A Law on Promoting Ethnic Solidarity and Progress is a Category II project in the 14th NPCSC’s five-year legislative plan. Over the past months, legislative leaders have led high-profile inspection tours across China on issues including “legal safeguards for promoting ethnic solidarity and progress,” likely to prepare for the drafting and review of this law.
(47) Improving the basic systems for ecological conservation. . . . An Ecological and Environmental Code will be compiled.
（47）完善生态文明基础体制。……编纂生态环境法典。
An Ecological and Environmental Code is the only codification project explicitly named in the 14th NPCSC’s five-year legislative plan. According to sources cited by Caixin, authorities have produced a draft with over a thousand articles in late June and have distributed it to State Council agencies, local legislatures, and universities for comment. A draft is expected to be submitted to the NPCSC for review by end of 2024, with final approval by the NPC expected in 2026, according to Caixin. Like the Civil Code [民法典], the Ecological and Environmental Code is expected to restate existing law while making the necessary amendments and additions to resolve inconsistencies and fill in statutory gaps.
(59) Intensifying efforts to improve conduct, build integrity, and combat corruption. . . .
Party and state oversight systems will be improved. . . . Steps will be taken to advance national anti-corruption legislation, revise the Supervision Law, and formulate a Law on Countering Transnational Corruption.
（59）深入推进党风廉政建设和反腐败斗争。
……
完善党和国家监督体系。……推进反腐败国家立法，修改监察法，出台反跨境腐败法。
The Supervision Law, enacted 2018, is the organic statute of supervision commissions, China’s state anti-corruption bodies, which are one and the same as the Party’s disciplinary inspection commissions at the corresponding levels. The Law prescribes the organizational structure of supervision commissions and outlines the scope of their authority and the procedures they ought to follow. A bill to update the Law has been scheduled for review in 2024, and a draft was reportedly circulated among the disciplinary apparatus for comment in late 2023. So far, there has been little public information on the proposed changes, however.
A Law on Countering Transnational Corruption is a Category I (i.e., top priority) project in the current NPCSC’s five-year legislative plan. An official with the Hunan provincial supervision commission disclosed at a forum in October 2023 that the State Supervision Commission had begun drafting the law in 2022. Caixin reports that the law will primarily regulate the corrupt practices of domestic Chinese companies and individuals in the course of investing or conducting business abroad.
Other Reforms Requiring NPC Action
The NPC’s role in implementing the Decision is not limited to the foregoing reform measures. As Shen Chunyao [沈春耀], director of the NPCSC Legislative Affairs Commission, noted at a post-Plenum press conference, “many of the important initiatives and tasks outlined in the Decision require formulating, amending, repealing, interpreting, or codifying laws, as well as [granting] the relevant authorizations or approvals.”
Yet it is no easy task to discern the precise level of the NPC’s involvement in implementing each reform measure just based on the Decision’s text. For some initiatives—such as the Decision’s extensive tax reforms (¶ 17) as well as its calls for establishing a personal-bankruptcy system (¶ 7) and regulating the setup of special courts (¶ 35)—the national legislature can be expected to play a big part in carrying them out because of its exclusive legislative authority over those matters. For most other initiatives, however, it is more likely either that the NPC would only enact general statutory provisions or grant reform authorizations and leave substantial room for other state organs to fill in the details, or that implementation would fall on the shoulders of other organs alone.
In short, the NPC’s role in carrying out the Decision will be varied. Director Shen offered a detailed preview:
Laws . . . that are necessary to deepen reform should be promptly formulated; for matters in which practical experience is not yet sufficient and for which trials and experimentation are necessary to accumulate experience, [the NPC] may issue authorizing decisions according to law; for existing statutory provisions that do not meet the requirements of reform and development, they should be promptly revised and improved, or repealed according to law; matters for which the relevant reform decisions have been made and which require corresponding amendments to multiple laws can be dealt with together through “packaged amendments”; and for institutional innovations that need to be advanced step by step, methods such as “decision + legislation” or “decision + amendments”2 can be adopted—[that is,] to first adopt the relevant decisions and then timely plan for and advance efforts to formulate or amend the relevant laws.
While it is highly unlikely that the national legislature would ever publish a list of the legislative projects necessary to implement the Decision, its current five-year legislative plan (adopted in fall 2023) already includes many projects pertinent to the Decision’s reform measures. But we do not expect the NPCSC to update the legislative plan in accordance with the Decision, as the plan includes a contingency provision leaving room for additional legislative projects to “advance the comprehensive deepening of reforms.” Instead, the NPCSC will use annual legislative plans to lay out the projects it aims to complete each year.
- While the document’s official English translation renders “决定” as “resolution,” we opt for the more commonly used term, “decision.” (“Resolution” is typically reserved for “决议”.) ↩︎
- These two methods have so far only been used to, respectively, enact the Hong Kong National Security Law in 2020 and amend rules for electing Hong Kong’s Chief Executive and Legislative Council under the Hong Kong Basic Law in 2021. ↩︎
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