The PRC Property Rights Law 2007: A Foundation for Further Economic Reform?

The PRC Property Rights Law, which came into effect on 1 October 2007, establishes the first unified framework in China for the recognition and protection of property rights. It is significant for many reasons, four of which are discussed in this article. First, it gives greater protection to property rights and confirms that all categories of ownership, whether state, collective or private, will enjoy equal protection. Second, it attempts to achieve a better balance between ownership rights and other property rights, such as security rights. Third, it establishes a uniform registration system in respect of real property, which should facilitate and increase the efficiency of property transactions in China's socialist market economy. Fourth, it clarifies the powers and compensatory obligations of the state where property is expropriated. This article identifies and analyses several issues that remain to be clarified before the law can achieve its full potential in terms of laying the foundation for further economic reform.