Patience is a virtue for key property law
(China Daily)
Updated: 2006-03-03 06:15

Differing opinions and a pressing need have made the legislative progress of the draft law on property rights an issue of great public concern.

The announcement by the National People's Congress on Wednesday that the draft law will be further studied represents a welcome effort to dispel the clouds gathering over the legislation.

The adjustment of the national legislature's timetable might disappoint advocates eager to introduce the law. But it by no means signalled a concession to opponents who would rather stop legislation before differences were settled.

As the country is striding ahead along the road of reform and opening-up to build an overall moderately well-off society, a new law on property rights is urgently needed.

By fleshing out the principle of equal protection of State, collective and private property, the property law will be of far-reaching significance to the nation's sustained development, as well as to every individual's welfare.

On the one hand, enhanced protection of State-owned assets is crucial to facilitating the market-oriented reform of State-owned enterprises.

Only when proper legal protection is in place to prevent loss of State assets can State firms undergo drastic ownership reforms to raise their efficiency.

The recent controversy about the legitimacy of management buyouts carried out in some State-owned enterprises is just one example of a case that needs clarified legal support.

On the other hand, equal protection of private property will help create a level playing field for all enterprises in the country.

The private sector has proved to be a very dynamic part of the national economy. Fair competition between private and State firms will boost the efficiency of both and benefit the country's economic growth as a whole.

For individuals, generally speaking, strengthened protection of private property will encourage them to make the most productive use of their growing wealth to improve their living standards.

From a more day-to-day view, redefined property rights can help address problems in people's everyday life.

In rural areas, farmers' rights to the use of land have yet to be fully protected when the land is requisitioned. In cities, intensifying conflicts between house owners and property management companies also add to the urgency of the legislation of a new property law.

By soliciting more than 10,000 suggestions on the draft law last year, the national legislature has set a remarkable example of public participation in legislation. The huge number of opinions indicates how important people think the issue is.

It is understandable and appreciable that legislators are trying to make a property law to meet the burning needs of the country and the people.

But many of those problems the law is supposed to target will not be fixed any time soon unless a consensus is reached among an overwhelming majority of the people.

The importance of the law should not be stressed at the cost of the quality of legislation, which rests on its smooth and effective implementation.

In this sense, the national legislature's decision to do more research on the property law is a responsible act.

(China Daily 03/03/2006 page4)