Full Text: Explanation on China´s draft property law

3. The Main Contents of the Draft Property Law

(1) Adherence to the Basic Socialist Economic System.

The Chinese-style socialist property system is determined by the basic socialist economic system and is in essence different from the capitalist property system. Therefore, enactment of the Chinese-style property law must give a full and accurate expression to the basic socialist economic system and the "Two Unswervingly" (to unswervingly consolidate and develop the economic sector of public ownership, and to unswervingly encourage, support and guide the development of the economic sector of non-public ownership - trans.) which is put forward at the 16th National Congress of the Communist Party of China. First, in the draft, upholding the basic economic system of the State is made the basic principle, the draft explicitly stipulates, "In the primary stage of socialism, the State upholds the basic economic system in which public ownership is dominant and the economic sectors of diverse forms of ownership develop side by side." "The State consolidates and develops the economic sector of public ownership, and encourages, supports and guides the development of the economic sector of non-public ownership." As the core of the property law, this basic principle runs through and is embodied in this law as a whole. Second, the proprietary right is a reflection of the ownership system in law and provides the basis for the property system. Clear-cut stipulations are made on ownership by the State and the collective and by the individual and there are comparatively more provisions on ownership by the State, which is conducive to upholding and improving the basic socialist economic system and to bringing into full play the advantages of all the economic sectors of the various forms of ownership, so that they stimulate one another for common development. Third, developing the socialist market economy is the inevitable requirement of upholding and improving the basic socialist economic system. On the premise of explicit provisions that "the exercise of rights by a usufructuaryor a secured party shall not damage the rights and interests of the owner", stipulations on usufructs and security rights are made in the draft, which is conducive to bringing into full play the usefulness of things, maintaining the order of market transaction and promoting the economic development.