Full Text: Explanation on China´s draft property law

On the question of protection of State-owned property. In light of the present situation of the loss of State-owned property, the draft property law strengthens the protection of State-owned property from the following five aspects on the basis of adherence to the principle of equal protection:

One, it stipulates, "The property owned by the State as provided for by law belongs to ownership of the State, that is, ownership of the entire people." And it also makes stipulations on the specific property that belongs to State-owned property, in order to prevent the loss of State-owned property due to equivocal definition of its ownership.

Two, it stipulates, "No units or individuals shall be allowed to obtain ownership of the immovables or movables exclusively owned by the Sate as is provided for by law."

Three, it stipulates, "The property owned by the State shall be protected by law, and illegal possession, looting, illegal sharing, withholding or destruction of such property by any unit or individual is prohibited."

Four, in light of loss of the property of the State-owned enterprises, it stipulates, "Any unit or individual that, in violation of the provisions on management of State-owned property, causes loss of State-owned property by transferring it at a low price, illegally sharing it in conspiracy with another person, placing a charge over it without authorization, or by other means in the course of restructure of the enterprise, merger or division of the enterprise, or affiliated transaction, etc., shall bear legal liability according to law."

Five, in light of the problems existing in supervision over State-owned property, it stipulates that where in performing their duties of administration of and supervision over State-owned property, the authorities and their staff members "cause loss of State-owned property due to their abuse of power or dereliction of their duties, they shall bear legal liability according to law."

These stipulations manifest the essence of the Constitution on the need to strengthen protection of the socialist public property and are of tremendous practical significance.