The China Venture

natural, is involved, or even where no foreign person is involved if the case has to do with
international economic activities. The China International Economic and Trade Arbitration
Com mission is prominent in China’s legal system because of its recognised independence
from political control, its adherence to transparent and internationally endorsed arbitration
procedures, and its reputation for fairness. 11
2.2.5 Current problems of the operating legal system
Despite the fact that the Chinese government has made tremendous efforts to built up a legal
system meeting international standards, many problems still need to be solved.
In contemporary China a big gap exists between the law on paper and the law in practice.
Notwithstanding the large number of laws and regulations enacted since 1979, the
implementation of law remains a major challenge to the nascent legal system. Official China
starts to realise that the implementation of law shall be the major task for the next stage of the
legal development in the PRC. In addition to this, the concepts of supremacy of law and the
rule of law are still not entirely accepted by governmental officials. The crucial issue here is
whether the government and the CPC are subject to law, or whether law is merely an
instrument in governing the country.
Another big issue in discussion is the transparency and accessibility of laws and regulations in
China. Lawyers working with foreign clients often point out that it is difficult to get access to
the content of laws and regulations that apply to business operations. The dissemination of
legal information in China is so underdeveloped, so unsystematic that it is often difficult
simply to find the applicable law. Even when the relevant rule can be found, provisions are
often so broad and sketchy that it is difficult to be certain of a correct interpretation. There is
also no systematic compilation of court decisions that would aid in the interpretation of
statutes and regulations. In addition to that, there is the vexing problem of the internal agency
rules. These rules are not published and therefore inaccessible to outsiders. This is even more
irritating because the internal rules are frequently the real rules under which the respective
state organs operate.
Law enforcement not only requires the formal establishment of courts and procuratorates. The
four levels of courts explained above, the Supreme People’s Court, twenty-nine high courts,
11 In contrast, Chinese domestic arbitration cases are handled by the Industrial and Commercial
Arbitration Commission, under the Bureau of Industry and Commerce, which is itself under the
14