The Civil Code of the PRC (2020): Structure and Significance

The Civil Code of the People’s Republic of China (Zhonghua Renmin Gongheguo Minfa Dian, 中华人民共和国民法典), effective 1 January 2021, is the most significant legislative achievement in modern Chinese legal history. The Code codifies all areas of private law in a single comprehensive instrument of 1,260 Articles organized into seven Books. The Code replaces nine separate statutes and harmonizes judicial interpretations spanning several decades.

Drafting History

The Civil Code was drafted over approximately six years, from the 2014 decision to proceed with codification to the NPC’s adoption in May 2020. The drafting process involved: the Legislative Affairs Commission of the NPC Standing Committee; academic drafting teams from China’s leading law schools; and extensive public consultation (over one million comments from the public).

The Civil Code was drafted in stages. The General Provisions (Book I) was enacted in 2017 as a separate law and subsequently incorporated into the Code. The remaining six Books were drafted between 2018 and 2020 and were submitted to the NPC as a single instrument. The staged approach allowed for public comment and legislative refinement of each component before final integration.

The Civil Code’s adoption was a political as well as legal achievement. President Xi Jinping described the Code as a milestone in the rule of law with Chinese characteristics and a encyclopedia of social life. The Code was presented as a demonstration of China’s legal development and a contribution to global civil law codification.

Book I: General Provisions

Book I (Articles 1-204) establishes the general principles and rules applicable to all civil law relationships. The Book covers: the basic principles of civil law (equality, voluntariness, fairness, good faith, public order and good customs, green development); the subjects of civil law (natural persons, legal persons, unincorporated organizations); civil rights; civil acts; agency; civil liability; prescription; and limitation periods.

The General Provisions introduce several innovations: the expansion of legal person categories to include special legal persons (including state organs and collective economic organizations); the codification of green development as a basic principle; the extension of the limitation period from two to three years; and the recognition of data and virtual property as protected civil law objects.

Book II: Property

Book II (Articles 205-462) governs property rights (wuquan), including ownership, usufructuary rights, and security interests. The Book covers: the types and content of property rights; the creation, transfer, and extinction of property rights; the system of property registration; and the protection of property rights.

Book II codified the previous Property Law (2007) with important reforms: the expansion of the types of property subject to security interests; the improvement of the registration system for security interests; the introduction of rules on automatic security interests; and the clarification of priority rules among competing security interests. The Book also retains the twin-track system of state ownership and private property rights.

Book III: Contracts

Book III (Articles 463-977) governs contract law, the largest book of the Civil Code. The Book covers: general principles of contract formation, validity, performance, modification, and termination; 19 nominate contract types (sales, lease, loan, service, technology, etc.); and specific rules for new contract types including factoring and property management.

Book III preserved the structure of the 1999 Contract Law while introducing: updated rules for electronic contracts; improved rules for contract formation through electronic means; expanded rules for consumer contracts; and new rules for standardized terms and adhesion contracts.

Book IV: Personality Rights

Book IV (Articles 989-1038) is a distinctive innovation of the Chinese Civil Code, providing comprehensive protection for personality rights (renge quan). The Book covers: the right to life, body, and health; the right to name and the right to image; the right to reputation and honor; the right to privacy; and the protection of personal information.

The Personality Rights Book is unique among major civil codes in treating personality rights as a separate book rather than incorporating them into tort law. The Book recognizes the special importance of personality rights in the digital age, including provisions on: the protection of personal information; the prohibition of deepfake technology; the regulation of human gene and embryo research; and the protection of dignity in the online environment.

Book V: Marriage and Family

Book V (Articles 1040-1118) governs marriage and family relations. The Book covers: marriage formation and dissolution; marital property regimes; parent-child relationships; adoption; and family support obligations. Book V preserves the basic structure of the Marriage Law (1980) and the Adoption Law while introducing important reforms.

Key innovations include: the cooling-off period for divorce applications (30 days); the clarification of rules on prenuptial agreements; the expansion of protection for victims of domestic violence; and the introduction of rules on parentage determination.

Book VI: Succession

Book VI (Articles 1119-1162) governs succession law. The Book covers: statutory succession; testamentary succession; legacies; legacy-support agreements; and estate administration. Book VI preserved the structure of the Inheritance Law (1985) while introducing: expanded forms of testamentary disposition (including printed and audio-visual wills); improved rules on compulsory portions; and the introduction of estate administration.

Book VII: Torts

Book VII (Articles 1164-1258) governs tort liability. The Book covers: general principles of tort liability; special types of torts (product liability, motor vehicle accidents, medical malpractice, environmental pollution, dangerous activities, and animal injuries); and liability for torts involving the internet and AI.

Book VII codified the Tort Liability Law (2009) with significant updates: the introduction of punitive damages for product liability and environmental torts; enhanced protection for Good Samaritans; rules on internet torts and platform liability; provisions on AI and automated decision-making torts; and expanded rules on damages calculation.