China

18
Country starter pack
Introduction to China
hierarchy of legislation in which national laws take priority
over sometimes inconsistent lower-level regulations, in
practice different interpretations of the same regulations
are often applied. Uncertainty is often influenced by
local protectionism, variable enforcement and a lack of
transparency, particularly in less developed areas. It is
therefore essential for anyone looking to establish or
operate a business in China to secure impartial and wellinformed
legal advice before taking the plunge.
The Chinese legal system has two overarching elements
– the Supreme People’s Court and the Supreme People’s
Procuratorate (the highest legal supervisory body). In
addition, the National People’s Congress and its Standing
Committee exercise national legislative power, and
the State Council is authorised to adopt administrative
regulations and measures in accordance with the
Constitution and national laws. China also has a system of
provincial and municipal governments, each with a People’s
Congress that may make local regulations, provided they
do not contravene the Constitution or national laws. All
citizens are equal regarding application of the law.
Supreme People's Court: The Supreme People's Court
is the highest judicial body in China. It oversees the
administration of justice by local people’s courts, military
courts and other special courts. The people’s courts try
all cases publicly, except cases involving state secrets,
individual privacy or minors.
Under China’s constitutional structure, courts are subject
to the supervision of the People’s Congresses (e.g.
provincial, municipal, county) and do not exercise the
power to determine the validity of laws and regulations.
The Supreme Court also supervises the local people’s
courts with special courts existing to handle such matters
as maritime and military issues.
Supreme People's Procuratorate: The highest legal
supervisory organ in China, reporting to the National
People's Congress and Standing Committee. It supervises
the activities of the other State departments and officials
as well as the power to ensure official and agencies are
in line with government rulings. This includes authority
overseeing treason, attempts to divide the country and
other important criminal cases. It examines the cases
after investigation by public security organs, and decides
on arrests and prosecutions while also supervising public
security organs, courts, prisons, reform through unions.
Infrastructure
Infrastructure investment in China has increased
significantly in recent decades and has been a key driver
of economic growth and improved standards of living.
Despite the expansion, China’s infrastructure continues
to develop and expand. Infrastructure development
has lagged behind what was envisaged in the Chinese
Government’s five year spending plan. The Chinese
Government has flagged plans to address the national
infrastructure shortfall from 2015, accelerating 300
projects valued at RMB seven trillion ($1.41 trillion).
Infrastructure ratings
2014 World Economic Forum's transport
rank out of 144 countries, 1 being the most
developed system:
ROAD
PORT
49 TH 53 RD
AIR
58 TH RAIL
17 TH
Policy makers hope this will help shore up China’s annual
GDP growth amid indications that it is set to slip below
seven per cent.
Much of China’s recent infrastructure development
– including rail networks, ports, telecommunications,
airports and roads – has been focused around major
urban centres on the east coast. When reviewing
China’s various elements of infrastructure, including rail
systems, seaports, telecommunication, airports and road
networks, it is important to understand the geographical
vastness of China and that a predominant amount of the
infrastructure development is on the east coast around
the major cities.
Transportation has attracted about a quarter of total
infrastructure investment, with a large component
going into roads. This has led to China’s highways and
expressways expanding from one million kilometres in
1990 to more than 4.3 million kilometres today. But
only 54 per cent of roads across the nation are paved
(compared with 78 per cent in Japan, 98 per cent in
the US and 50 per cent in India). A National Trunk
Highway System links all provincial capitals and cities with
populations of more than 200,000. About 70 per cent
of the system is expressways.
China has in recent years significantly expanded and
modernised its rail networks within and between its major
population centres. The biggest urban rail systems are
in the major cities of Beijing, Shanghai, Guangzhou and
Shenzhen. New lines are currently under construction in
the biggest Chinese cities and other metropolitan areas
along the eastern seaboard.
When it comes to inter-city high speed rail, China is a
global leader. Its passenger-dedicated high-speed rail
network extends for 12,000 kilometres – making it the
biggest in the world. More lines are currently being built
and upgraded to eventually connect all cities of more than
500,000 people.