Private Property Protection in China?

This week’s edition of the Economist contains a very insightful article about property rights in China (subscription required). It is expected that a law protecting the property rights of individuals will be passed by the National People’s Congress this month. The law will provide ordinary citizens with the same legal protection of their property as the state. As the Economist reports:

The party’s decision to enact the law in spite of that resistance is a great symbolic victory for economic reform and the rule of law. Clearer, enforceable property rights are essential if China’s fantastic 30-year boom is to continue and if the tensions it has generated are to be managed without widespread violence.

However, as the Economist notes, the law in and of itself doesn’t mean that significant changes will occur. A law is just words on paper until it is enforced, and the government will likely need some encouragement to uphold the new legislation. Personally, I’m interested to see if this new law will increase citizens’ efforts to participate in the governance process. In this particular case, the law can have a very direct impact on the personal lives of citizens – from middle class homeowners to those who have invested heavily in real estate. [Unfortunately, the law does not provide peasants with the right to own or sell the land that they farm]. So, if it is not enforced – will citizens make a concerted effort to fight for their rights? Will farmers in the countryside increase their protests for property rights? And what will be the government’s response?

This law isn’t perfect, and it isn’t a guarantee that the government will become increasingly more responsive to the needs and rights of its citizens. But, it is a positive step in the right direction.

Published Date: March 08, 2007