The Rule of Law.  Everybody’s talking about it over here—mostly because an obvious lack of it.  According to the 'Lectric Law Library, the rules of law “are general maxims, formed by the courts, who having observed what is common to many particular cases, announce this conformity by a maxim, which is called a rule; because in doubtful and unforeseen cases, it is a rule for their decision; it embraces particular cases within general principles.”  What’s all that mumbo jumbo mean?  Standards.  When this crime occurs, this standard punishment is allotted.  In China, these “general maxims” are lacking.  For example, in Beijing, the punishment for intellectual property piracy may be a decade in prison and tens of thousands of dollars in fines, while in a poorer province; it may be difficult to get the pirate arrested in the first place.

In fact, even in the same city, two different people can get two different rulings under the same law—especially if one is a foreigner and one is a well-connected Chinese.  This is making business very difficult for both foreign and Chinese entrepreneurs and when I talk to foreign lawyers, it is one of the first things they criticize about Chinese law.

In my understanding, there are several reasons for a lack of the rule of law.  First of all, back in the 80’s the state government gave a lot of power back to the provincial governments so now it is very difficult for the central government to enforce standards.  Second, some Chinese see no real ethical problem with giving preferential treatment to friends and family—that’s just how things are done!  There are other reasons, but I’ll be polite and not mention them now.

So what is China doing to help bolster the rule of law?  Setting up standards of legal knowledge for senior officials.  This may seem obvious to someone from a nation with an established legal and political system, but during the Cultural Revolution almost anyone could become a high level bureaucrat, from party members to generals—no legal background required.  Now China is playing catch up and struggling to fill a big talent vacuum in its leadership.  Now that I’ve done some explanation I think its fair to explain one of the impolite reasons: some Chinese politicians don’t know jack about law.  A leader that doesn’t understand the law can not try and enforce the rule of law.

The standards for leaders will be applied by making all future high level bureaucrats pass a test.  Though tests don’t necessarily test understanding (I know, I’ve taken many and actually passed most), it will require some thorough study and at least a basic knowledge for them.  A good first step… and about as good a step as a new legal system can manage.

Link: China Economic Net