The 2020 Civil Code of the PRC
The 2020 Civil Code of the People’s Republic of China is the first unified civil code in PRC history. Adopted at the Third Session of the Thirteenth National People’s Congress on 28 May 2020, it entered into force on 1 January 2021, replacing nine separate civil laws. The Code represents a milestone in Chinese legal development, providing comprehensive regulation of private law relations.
Legislative History
The project to codify Chinese civil law was announced in October 2014. A three-step process was followed: first, amending the General Principles of Civil Law (2017); second, drafting individual books (2018-2019); third, compiling all books into a unified code (2020). Multiple draft versions were published for public comment, with tens of thousands of comments received. The process reflected the NPC’s commitment to broad consultation.
The decision to codify was motivated by several factors. The existing nine separate civil laws had been enacted over four decades and contained inconsistencies. A unified code would enhance legal certainty and accessibility. Codification would demonstrate China’s commitment to the rule of law and improve its business environment. The code would also serve as a symbol of China’s legal development and its civil law tradition.
Book I: General Provisions
Book I establishes fundamental principles including equality, voluntariness, fairness, good faith, public order and good customs, and the green principle requiring environmental protection. It defines natural and legal persons, civil rights, legal acts, agency, and limitation periods. The general provisions provide the interpretive framework for the entire Code.
The concept of public order and good customs (公序良俗) serves as a general limitation on the exercise of civil rights. The green principle (绿色原则) is a Chinese innovation requiring civil activities to conserve resources and protect the environment. These principles guide the interpretation of Code provisions and may be invoked to limit otherwise lawful conduct. Book I also establishes the capacity rules for natural and legal persons and the rules on civil legal acts.
Book II: Property Rights
Book II governs ownership (including state, collective, and private ownership), usufructuary rights (including land use rights), security interests (mortgage, pledge, lien), and possession. It reaffirms equal protection of property rights for all market participants. The property provisions maintain the constitutional distinction between state, collective, and private ownership while strengthening protections for private property.
The property law provisions are particularly important for China’s market economy. The distinction between state ownership of land and the grant of land use rights to private parties is maintained. Residential land use rights, originally granted for 70 years, are renewable automatically. Security interests are modernized to facilitate commercial lending. The equal protection of property rights signals the state’s commitment to protecting private investment.
Book III: Contracts
Book III codifies contract law, covering formation, validity, performance, modification, assignment, termination, and remedies for breach. It regulates 19 specific contract types including sale, lease, loan, and construction contracts. The book incorporates principles from the UNIDROIT Principles of International Commercial Contracts, aligning Chinese contract law with international standards.
The contract provisions maintain continuity with the 1999 Contract Law while introducing innovations. Electronic contracts are recognized as valid. Standard terms are subject to heightened scrutiny, with terms that unfairly exclude or limit liability potentially void. The right to terminate contracts for fundamental breach is clarified. The rules on liquidated damages and penalties are refined. The contract book represents a careful balance between freedom of contract and protection of weaker parties.
Book IV: Personality Rights
A distinctive innovation, Book IV codifies personality rights including the right to life, body, health, name, image, reputation, honor, privacy, and personal information. It provides injunctive relief and damages for violations and addresses emerging issues including deepfakes and data protection. The inclusion of personality rights as a standalone book reflects growing attention to personal dignity in Chinese society.
The personality rights provisions are among the most innovative parts of the Code. They recognize the right to personal information protection, addressing concerns about data collection and use. They provide remedies for deepfakes and other forms of digital manipulation. They strengthen protection for reputation and privacy in the context of social media and online communication. The provisions reflect the legislature’s attempt to address the challenges of the digital age.
Book V: Marriage and Family
Book V governs marriage, divorce, family relations, and adoption. Key provisions include the requirement of mutual affection, rules on marital property, compensation for domestic work, and the prohibition of child marriage and commercial surrogacy. The family law provisions maintain the existing framework while introducing reforms to protect vulnerable family members.
The marriage and family provisions introduce several innovations. The cooling-off period for divorce (30 days for withdrawal of unilateral divorce application) aims to reduce impulsive divorces. The rules on marital property are clarified, with provisions for compensation for domestic work and for economic assistance after divorce. The prohibition of commercial surrogacy is maintained. The book reflects the legislature’s attempt to balance individual autonomy with family stability.
Book VI: Succession
Book VI regulates inheritance by will and by law, including the order of statutory succession, testamentary capacity, types of wills, and estate administration. The Code expanded the types of valid wills to include printed wills and video recordings, adapting succession law to modern communication methods.
Book VII: Tort Liability
Book VII governs tort liability, including fault-based liability, strict liability, and equitable liability. It covers product liability, motor vehicle accidents, medical malpractice, environmental pollution, and online infringement. The Code introduced punitive damages for intentional infringement of personality rights and intellectual property rights, strengthening remedies for serious violations.
Implementation
The Civil Code is implemented through judicial interpretations issued by the Supreme People’s Court. These interpretations provide detailed rules for applying Code provisions and ensure uniform adjudication across Chinese courts. The implementation process will continue for years as the courts develop jurisprudence on the Code’s many new provisions.