Why rule of law in China matters to Australian business
Economy |
China
Should Australian business be interested in The fourth plenum of the 18th Central Committee of the Chinese Communist Party (CCP)? Why does business care that the rule of law was a central theme at a gathering of the most important members of the CCP? For Australian business the rule of law, ie the idea that government and leaders, as well as all private and public entities, are equally accountable under the law in the same way as ordinary citizens, is like oxygen – taken for granted as the way things are.
But, for many of our clients the rule of law is more than an abstract issue. Like local Chinese businesses they are concerned about whether they will get a fair hearing before an unbiased arbitrator. This explains what President Xi Jinping meant when he said that “strong and effective law enforcement builds a strong nation, but slack law enforcement weakens a nation” and “in the whole process of reforms, a mindset and governance method under the rule of law must be prioritised and the guiding and driving role of the rule of law should be fully tapped.” Clearly President Xi sees the rule of law as a part of his ambition to deliver the Chinese dream. Is there a place for the rule of law in the wider ambition of “rejuvenating” China?
At a practical level it means many things. But for those looking to do business in China this programme for advancing the rule of law means that the Chinese are developing the rule of law with “Chinese characteristics”. This is important for business because it means a system where increasingly you can expect a law-abiding government. A system that wants to enhance judicial credibility.
There is real evidence that the Chinese government wants to root out judicial corruption. Indeed, these failures of the Chinese judicial system have led authorities to take an institutional approach to addressing the problem by amending the system. According to the Central Commission for Discipline Investigation, a total of 182,038 Chinese government officials have been punished for corruption in the last year. This anti-corruption drive aims to strengthen the framework of the judicial system so there is greater accountability and transparency.
Similarly better transparency in the legislative design process (policy will always be a CCP matter) will in the long run mean better legislation. Better legislation that is the product of wider exposure based on informed opinions and comments. This might also mean a legislative process that includes some participation for the general public.
President Xi’s reform of the judicial system is the first comprehensive and probably the most committed reform we have ever seen in contemporary China. The reform goes hand in hand with President Xi’s anti-corruption agenda. The plenum proposed 11 legal innovations, but the most important for business are: to examine the legitimacy of major decision-making in governments; to improve the system for independent and impartial execution of judicial powers according to the law; to set up a protection mechanism for judicial personnel in performing their statutory duties and responsibilities; and to set up a system to recruit judges and prosecutors from qualified lawyers and law experts.
Ultimately these steps if successfully enacted will give Chinese law a predictability that business needs. The plenary session may have laid out a new path for promoting the rule of law, but there are many turns in the path before the destination can be reached. Although there are difficulties, most experts agree that China has embarked on the fast track towards a rule of law, albeit with Chinese characteristics.
The language of the fourth plenum spoke of a socialist system of rule of law with Chinese characteristics. This means building a socialist state of rule of law. There seems to be an explicit and implicit recognition of the need to try to create a system that is fair. This is significant and is a genuine attempt to build on the third plenum goal of developing a socialist system with Chinese characteristics and a modern “national governance system and governance capabilities”.
In some ways it's a good opportunity to reflect on what we mean when we say that a system is fair. Implicit in “fairness” is the assurance of a stable system with mechanics and policies that are bound to a rule of law. In behavioural economics it is called “inequity aversion.” Like any English word, “fair” has multiple meanings. The Macquarie Dictionary defines fair as “free from bias, dishonesty, or injustice.” Interestingly it seems even Capuchin monkeys get what fairness is. For the business community that means a belief that the rules of the game are transparent and are applied equally (including to government). Judicial equity should promote and guarantees fairness, if it is free from corruption and influence. But none of this gets very far unless there is a real desire to implement the plenum’s lofty ideas.
For Australian businesses, fairness means all business are treated equally before the law and there are reasonable safeguards that exist to ensure people are not treated arbitrarily or unfairly by governments or officials. The fourth plenum seems to be going some way towards a similar understanding of what people dealing with the Chinese system are entitled to expect.
For business in China we hope that the plenum will lead to an end to complaints that they can’t get a fair hearing in court because judges answer to local governments and CCP organs, that may have their own interests to protect. We do not expect that China is about to set up a fully independent judiciary. In this sense the “Chinese characteristics” are more likely to mean that, for sensitive cases such as high-level corruption, the CCP will remain firmly in charge.
There is a growing awareness that for sustainable economic growth the rule of law has an important role in China's market economy. That is why we expect that the path mapped out by this plenum will be one that leads to a destination where for example, companies could challenge the rulings of regulators in court. One where judges operated professionally, independently and with transparency (in at least commercial matters) providing high quality written judgements and decisions largely free from judicial corruption and political influence.
Chinese leaders Xi Jinping, Li Keqiang, Zhang Dejiang, Yu Zhengsheng, Liu Yunshan, Wang Qishan and Zhang Gaoli attend the Fourth Plenary Session of the 18th Central Committee of the Communist Party of China (CPC) in Beijing, capital of China. The session was held here from Oct. 20 to 23. (Xinhua/Lan Hongguang)
BEIJING, Oct. 23 (Xinhua) -- The fourth plenary session of the 18th Communist Party of China (CPC) Central Committee announced a communique after its closing on Thursday.
Following are the highlights of the document, which focuses on "comprehensively advancing the rule of law" in China.
-- The general target is to form a system serving "the socialist rule of law with Chinese characteristics" and build a country under "the socialist rule of law".
-- China will ensure the leadership of CPC in "the socialist rule of law with Chinese characteristics".
-- The major tasks are to improve a socialist system of laws with Chinese characteristics, in which the Constitution is taken as the core, to strengthen the implementation of the Constitution, to promote administration by law, to speed up building a law-abiding government, to safeguard judicial justice, to improve judicial credibility, to promote the public awareness of rule of law, to enhance the building of a law-based society, to improve team building and to sharpen the CPC's leadership in pushing forward rule of law.
-- To realize the rule of law, the country should be ruled in line with the Constitution.
-- The system to ensure the implementation of the Constitution and to supervise the implementation should be improved.
-- The National People's Congress and its Standing Committee should play a better role in supervising the Constitution's implementation.
-- China will work to build a law-abiding government.
-- A mechanism to examine the legitimacy of major decision-making in governments should be set up, with a lifelong liability accounting system for major decisions and a retrospective mechanism to hold people accountable for wrong decisions.
-- China will promote transparency of government affairs.
-- A mechanism will be set up to record officials who interfere in judicial cases and name them publicly to hold them accountable.
-- The Supreme People's Court will set up circuit courts, and the country will explore establishing cross-administrative region courts and procuratorates, and seek to allow prosecutors to file public interest litigation cases.
-- The country will enhance the protection of human rights in judicial procedures.
-- China will try to recruit lawmakers, judges and prosecutors from qualified lawyers and law experts.
-- The CPC will improve its internal rules and mechanisms.
-- The effectiveness of implementing rule of law will be a significant index in judging the work of officials at various levels and will be added to their performance appraisal system.
-- The People's Liberation Army will promote the rule of law and enforce strict discipline.
-- China will guarantee the practice of "one country, two systems" and promote national reunification in line with laws.
Related:
CPC should lead China to promote rule of law
BEIJING, Oct. 23 (Xinhua) -- The Communist Party of China (CPC) should lead the country's drive to advance the rule of law, said a key document here Thursday.
The general target is to form a system serving "the socialist rule of law with Chinese characteristics" and build a country under "the socialist rule of law", said the communique issued after the fourth plenary session of the 18th CPC Central Committee, which focused on "comprehensively advancing the rule of law" in China. Full story
CPC sets blueprint for rule of law at key meeting
BEIJING, Oct. 23 (Xinhua) -- The Communist Party of China (CPC) set the blueprint for rule of law in the world's second largest economy during a key meeting this week, which also highlighted the Party's leadership and the overarching role of the Constitution in the country's legal system.
The Fourth Plenary Session of the 18th CPC Central Committee was held in Beijing from Oct. 20 to 23. Full story
Three officials fill vacancy of CPC Central Committee membership
BEIJING, Oct. 23 (Xinhua) -- Three new members filled vacancies of the Central Committee of the Communist Party of China (CPC) on Thursday after former members were expelled from the Party.
The three new members are Ma Jiantang, Wang Zuo'an and Mao Wanchun, according to a communique released after the fourth plenary session of the 18th CPC Central Committee. Full story
Key CPC meeting confirms dismissal of 6 former officials' membership
BEIJING, Oct. 23 (Xinhua) -- The fourth plenary session of the 18th Communist Party of China (CPC) Central Committee on Thursday endorsed prior decisions to revoke the membership of six former officials.
They are Li Dongsheng, Jiang Jiemin, Yang Jinshan, Wang Yongchun, Li Chuncheng and Wan Qingliang. Full story
Spotlight: China's pursuit of rule of law wins world recognition
BEIJING, Oct. 22 (Xinhua) -- The latest gravity assigned by the Communist Party of China (CPC) to advance the rule of law in China in an all-round manner has been hailed by political and academic figures in the West.
"I am glad that China is giving prominence to the discussion of the rule of law," said Charles Powell, former private secretary to late British Prime Minister Margaret Thatcher during the 1980s. Full story
PLA general expelled from CPC
BEIJING, Oct. 23 (Xinhua) -- Yang Jinshan, deputy commander of the Chengdu Military Area Command of the Chinese People's Liberation Army (PLA), was expelled from the Communist Party of China (CPC) for serious disciplinary violations, it was announced after a key CPC meeting on Thursday.
Yang was also one of the 205 members of the 18th CPC Central Committee. Full story
CPC move toward rule of law significant step for China: experts
BEIJING, Oct. 19 (Xinhua) -- The fourth plenum of the 18th Communist Party of China (CPC) Central Committee is set to open on Monday to discuss the rule of law, aiming to speed up the construction of governance by law from the top level and by improving the system to promote social justice of the country.
Experts note that this will be the first time for a CPC session to center on the rule of law, which will be the key to realizing the party's goal to promote the modernization of China's governing system and capabilities. Full story
China Voice: China should make law the rule, not tool
BEIJING, Oct. 21 (Xinhua) -- As China's ruling party pledges to advance the rule of law at a key meeting on this theme, government agencies and officials should be reminded that the law should regulate the entire society, rather than simply be a tool to justify their administration.
The fourth plenary session of the 18th Communist Party of China (CPC) Central Committee -- slated for Oct. 20-23 -- is billed as a milestone in China's political reforms and progress, as it will be devoted to the central theme of "rule of law" for the first time in the Party's history. Full story
Xinhua Insight: CPC convenes first plenum on "rule of law" in reform, anti-graft drive
BEIJING, Oct. 20 (Xinhua) -- When elite members of the Communist Party of China (CPC) gather this week for a key annual policy-setting meeting, their presence alone will be enough to make history.
The fourth plenary session of the 18th CPC Central Committee - slated for Oct. 20-23 - is billed as a milestone in China's political reforms and progress, as it will be devoted to the central theme of "rule of law" for the first time in the Party's history. Full story
China Voice: CPC "rule of law" meeting key to reform, fairness
BEIJING, Oct. 19 (Xinhua) -- Seeking greater social fairness and justice is high on the agenda in China as the central committee of the ruling party is set to discuss rule of law issues.
Arrangements to promote rule of law are expected to be unveiled at the fourth plenary session of the 18th Central Committee of the Communist Party of China in Beijing from Monday to Thursday. Full story
Chinese leaders Xi Jinping, Li Keqiang, Zhang Dejiang, Yu Zhengsheng, Liu Yunshan, Wang Qishan and Zhang Gaoli attend the Fourth Plenary Session of the 18th Central Committee of the Communist Party of China (CPC) in Beijing, capital of China. The session was held here from Oct. 20 to 23. (Xinhua/Lan Hongguang)
BEIJING, Oct. 23 (Xinhua) -- The fourth plenary session of the 18th Communist Party of China (CPC) Central Committee announced a communique after its closing on Thursday.
Following are the highlights of the document, which focuses on "comprehensively advancing the rule of law" in China.
-- The general target is to form a system serving "the socialist rule of law with Chinese characteristics" and build a country under "the socialist rule of law".
-- China will ensure the leadership of CPC in "the socialist rule of law with Chinese characteristics".
-- The major tasks are to improve a socialist system of laws with Chinese characteristics, in which the Constitution is taken as the core, to strengthen the implementation of the Constitution, to promote administration by law, to speed up building a law-abiding government, to safeguard judicial justice, to improve judicial credibility, to promote the public awareness of rule of law, to enhance the building of a law-based society, to improve team building and to sharpen the CPC's leadership in pushing forward rule of law.
-- To realize the rule of law, the country should be ruled in line with the Constitution.
-- The system to ensure the implementation of the Constitution and to supervise the implementation should be improved.
-- The National People's Congress and its Standing Committee should play a better role in supervising the Constitution's implementation.
-- China will work to build a law-abiding government.
-- A mechanism to examine the legitimacy of major decision-making in governments should be set up, with a lifelong liability accounting system for major decisions and a retrospective mechanism to hold people accountable for wrong decisions.
-- China will promote transparency of government affairs.
-- A mechanism will be set up to record officials who interfere in judicial cases and name them publicly to hold them accountable.
-- The Supreme People's Court will set up circuit courts, and the country will explore establishing cross-administrative region courts and procuratorates, and seek to allow prosecutors to file public interest litigation cases.
-- The country will enhance the protection of human rights in judicial procedures.
-- China will try to recruit lawmakers, judges and prosecutors from qualified lawyers and law experts.
-- The CPC will improve its internal rules and mechanisms.
-- The effectiveness of implementing rule of law will be a significant index in judging the work of officials at various levels and will be added to their performance appraisal system.
-- The People's Liberation Army will promote the rule of law and enforce strict discipline.
-- China will guarantee the practice of "one country, two systems" and promote national reunification in line with laws.
Related:
CPC should lead China to promote rule of law
BEIJING, Oct. 23 (Xinhua) -- The Communist Party of China (CPC) should lead the country's drive to advance the rule of law, said a key document here Thursday.
The general target is to form a system serving "the socialist rule of law with Chinese characteristics" and build a country under "the socialist rule of law", said the communique issued after the fourth plenary session of the 18th CPC Central Committee, which focused on "comprehensively advancing the rule of law" in China. Full story
CPC sets blueprint for rule of law at key meeting
BEIJING, Oct. 23 (Xinhua) -- The Communist Party of China (CPC) set the blueprint for rule of law in the world's second largest economy during a key meeting this week, which also highlighted the Party's leadership and the overarching role of the Constitution in the country's legal system.
The Fourth Plenary Session of the 18th CPC Central Committee was held in Beijing from Oct. 20 to 23. Full story
Three officials fill vacancy of CPC Central Committee membership
BEIJING, Oct. 23 (Xinhua) -- Three new members filled vacancies of the Central Committee of the Communist Party of China (CPC) on Thursday after former members were expelled from the Party.
The three new members are Ma Jiantang, Wang Zuo'an and Mao Wanchun, according to a communique released after the fourth plenary session of the 18th CPC Central Committee. Full story
Key CPC meeting confirms dismissal of 6 former officials' membership
BEIJING, Oct. 23 (Xinhua) -- The fourth plenary session of the 18th Communist Party of China (CPC) Central Committee on Thursday endorsed prior decisions to revoke the membership of six former officials.
They are Li Dongsheng, Jiang Jiemin, Yang Jinshan, Wang Yongchun, Li Chuncheng and Wan Qingliang. Full story
Spotlight: China's pursuit of rule of law wins world recognition
BEIJING, Oct. 22 (Xinhua) -- The latest gravity assigned by the Communist Party of China (CPC) to advance the rule of law in China in an all-round manner has been hailed by political and academic figures in the West.
"I am glad that China is giving prominence to the discussion of the rule of law," said Charles Powell, former private secretary to late British Prime Minister Margaret Thatcher during the 1980s. Full story
PLA general expelled from CPC
BEIJING, Oct. 23 (Xinhua) -- Yang Jinshan, deputy commander of the Chengdu Military Area Command of the Chinese People's Liberation Army (PLA), was expelled from the Communist Party of China (CPC) for serious disciplinary violations, it was announced after a key CPC meeting on Thursday.
Yang was also one of the 205 members of the 18th CPC Central Committee. Full story
CPC move toward rule of law significant step for China: experts
BEIJING, Oct. 19 (Xinhua) -- The fourth plenum of the 18th Communist Party of China (CPC) Central Committee is set to open on Monday to discuss the rule of law, aiming to speed up the construction of governance by law from the top level and by improving the system to promote social justice of the country.
Experts note that this will be the first time for a CPC session to center on the rule of law, which will be the key to realizing the party's goal to promote the modernization of China's governing system and capabilities. Full story
China Voice: China should make law the rule, not tool
BEIJING, Oct. 21 (Xinhua) -- As China's ruling party pledges to advance the rule of law at a key meeting on this theme, government agencies and officials should be reminded that the law should regulate the entire society, rather than simply be a tool to justify their administration.
The fourth plenary session of the 18th Communist Party of China (CPC) Central Committee -- slated for Oct. 20-23 -- is billed as a milestone in China's political reforms and progress, as it will be devoted to the central theme of "rule of law" for the first time in the Party's history. Full story
Xinhua Insight: CPC convenes first plenum on "rule of law" in reform, anti-graft drive
BEIJING, Oct. 20 (Xinhua) -- When elite members of the Communist Party of China (CPC) gather this week for a key annual policy-setting meeting, their presence alone will be enough to make history.
The fourth plenary session of the 18th CPC Central Committee - slated for Oct. 20-23 - is billed as a milestone in China's political reforms and progress, as it will be devoted to the central theme of "rule of law" for the first time in the Party's history. Full story
China Voice: CPC "rule of law" meeting key to reform, fairness
BEIJING, Oct. 19 (Xinhua) -- Seeking greater social fairness and justice is high on the agenda in China as the central committee of the ruling party is set to discuss rule of law issues.
Arrangements to promote rule of law are expected to be unveiled at the fourth plenary session of the 18th Central Committee of the Communist Party of China in Beijing from Monday to Thursday. Full story
No comments:
Post a Comment