The Constitution of the People’s Republic of China

Does China have a constitution?

Yes. The People's Republic of China has a written constitution, and Mian Ashiq Hussain quotes it directly: Article 2 states that all power belongs to the people, exercised through the National People's Congress and the people's congresses at local level. He studies it alongside the US Constitution to ask why both countries grew so fast.

1. Over the past four decades, China has worked a great economic miracle. Its gross domestic product (GDP) increased more than 60 times, per capita GDP grew to 65 times from 1980 to 2022; national GDP grew to the highest rank in the world in purchasing power parity (PPP) while in dollar terms it is number 2 after the United States. Close to 800 million Chinese were lifted out of poverty. China is now a manufacturing superpower. There has been phenomenal advancement in education, innovation and infrastructure, physical as well as soft. Human development has made Chinese population the greatest productive workforce in the world. According to a survey conducted by Washington-based PEW Research Centre, 80% of the Chinese “believe that their children will have a better standard of living than they do”. Such widespread public optimism about the future of China reveals that its model of government has outperformed big economies and holds out great promise for the future generations.

How do the constitutions of China and the United States compare?

On paper they are opposites: the US is a federal republic with separated powers and judicial review, while China is a unified, hierarchical state in which the National People's Congress combines state power. The author argues that, despite this, both share a founding belief in people's sovereignty and broad public participation.

2. Apparently, the constitutional systems of the United States and China are poles apart: the former is federal democratic republic based on horizontal and vertical distribution of powers, the latter is centralised unified multi-ethnic state. Chinese governance model is hierarchical without visible checks and balances. National People’s Congress (NPC) with its Standing Committee (NPCSC) is the repository of all state power embodying combination of powers; American Supreme Court is independent and wields decisive powers of judicial review over the laws passed by the Congress but the Supreme People’s Court of China lacks power of judicial review and acts like other Constitutional Commissions. The US is multi-party democracy, whereas political parties in China act as subsidiaries of the Chinese Communist Party (CCP) and work under its guidance and leadership.

3. In reality, however, there were common factors which contributed to the growth of both the super economies. Historical background of both the nations, too, had many similarities. The American States outgrew the monarchical rule of the British Empire in the American Revolutionary War (1775 – 1783). In China, the Qing imperial dynasty was abolished in the Revolution of 1911. Both the states inherited no model of government to be readily followed; both the countries explored their own ways to republicanism with their special characteristics in their peculiar historical backgrounds. Instead of adopting replicas of the old-world models, the peoples of both the countries evolved their original institutional structures. Though in China, initially efforts were made by some quarters to emulate federal democracy envisaged by the US Constitutional Convention of 1787, thoughtful Chinese people soon realised that political cultures cannot be transplanted in different social climates. Out of the box approach of the revolutionary leaders in both the countries created innovative state institutions. The historic progress in both the cases is reflected in the eloquent and figurative verse of Mirza Ghalib:

(Intensity of wine keeps moulding its glass vessel)

4. The founding fathers of both the constitutions believed in people’s sovereignty. Benjamin Franklin defined the form of government produced by the Constitutional Convention in 1787 as a republic. Bill of Rights Institute defined a republican government as one “in which the people – directly or indirectly – are the ultimate source of authority, electing representatives to make laws that serve their interests and advance common good …”. Article 2 of Chapter 1 of the Constitution of PRO China reads: “All power in the Peoples Republic of China belongs to the people”. Evidently, China is a republic according to the definition given by the Bill of Rights Institute. In the regional perspective, political developments in China have been distinctly different from chronic dynastic regimes which seized governments in the colonial model democracies in the South Asian Countries— where even after their independence, democracy is generally confined to democratic rituals rather than making people the source of authority for promoting public welfare.

5. Sufficient evidence suggests that despite distinctive features of the constitutions of the US and China, people’s participation in both governance models is a common factor behind the phenomenal progress of both countries. To face the challenge of the new world of American continent, which was inhabited by hostile indigenous population, self-governance through direct participation of grassroots representatives of the American settlements took roots from the very start of colonisation. Remote and limited control of the British Empire and effectiveness of Royal Charters in America mainly extended to taxation and trade regulations. The prevailing model of federal democracy in the United States had its genesis in self-governance practised by European settlers in the American colonies ever since their earliest stages of development. Fundamentally significant fact is that self-governance motivated and mobilised productive participation of people of the settlements. People’s constant participation in political process and economic productivity evolved the states, and the states eventually created the Union. In a nutshell, the rise of the Union as well as its economy had its origin in self-governance and political participation of the American population.

6. Similarly, the Chinese system of local governments wields tremendous control in mobilising its population through motivation at the grassroots level. Engagement of the Chinese population played key role in its spectacular socio-economic development. “Through direct consultation and participation of grassroots deputies representing all levels of society, China possesses a mechanism in the two sessions which can chart a clear path toward meeting concrete development goals… Direct elections are held at the village level and corresponding deputies at higher level are subsequently elected by lower levels of government system based upon a record of service to the people. Whole process democracy is bidirectional, meaning that regular consultation occurs between higher levels of the governance system such as the National People’s Congress and provincial and local authorities to ensure policies properly balance national priorities and local considerations.”

How are tax and spending divided in China's constitutional system?

The author explains that China's central government keeps almost all taxing powers, leaving local governments only a few small taxes. Spending is the reverse: local governments carry out most public budget spending, funded by transfers meant to equalise basic services. He sees weak local tax autonomy as a major issue.

7. Lack of tax autonomy of local levels of governments is, however, one of the major issues of the Chinese government model. “The central government maintains almost all taxing powers and the local governments are given little taxing powers.” Even overall national tax-to-GDP ratio about 30% is lower as compared with average tax-to-GDP ratio for all OECD countries in 2017 at 34.2%. Local governments have little independent taxing powers except the power of determining tax rates for small local taxes within a range determined by the central government of China. In local tax system, there are presently five taxes: urban and township land-use tax, arable land occupancy tax, land appreciation tax, real estate tax and deed tax. The central government has further decided to assign the excise tax revenues amounting to CNY 1.1 trillion in 2018 also to local governments. The transition to tax dependence instead of debt dependence is still a formidable issue. Besides, it is a common observation that overdependence on indirect taxation suppresses supply side of economy while redistributive character of direct taxation boosts economic growth and full employment by raising effective demand.

8.

i) However, in contrast to centralised tax collection system, public budgetary expenditures are highly decentralised. In 2018, local governments spent about 85% of the total amount of general public budgetary expenditures. The purpose of the transfers to the local governments is to equalise the basic services across China. Public spending on education, health and other services in rural areas made possible unprecedented reduction in poverty.

ii) People’s participation in governance in China is evident in its participatory budgeting. With the advancing stages of development, innovative institutions have been evolved according to the needs of time. For instance, local pilot participatory budgeting and local democracy reforms in Chengdu Municipality evolved means of direct villagers’ participation in village-level public services, budgetary decision making, monitoring and evaluation of development schemes to reduce urban-rural disparities.

iii) There are more than 2,300 villages in Chengdu, with a population varying from 1,000 to 5,000. Out of 59 rural public services, 8 would be delivered by villagers and rural communities. Public budgeting created a precedent for encouraging public debates on the use of public funds. Local democracy in Chengdu reformed rural land property rights: “The farmers could voluntarily transfer part of their homestead and arable land property to acquire land property benefits in the market”. Village-level governance includes village councils directly elected by villagers. Village Communist Party secretary acts as the convener of village council and village committees.

iv) Villagers may choose short-term projects or long-term infrastructure within their budgetary limits. Village committees/groups execute projects, employ contractors, experts and monitor implementation of participatory budgets. In some matters, village council representatives visit every household to collect their opinions for approval of budgets. Responding directly to local needs, active participation of local populace mobilises and motivates people in revitalising development activities, reducing regional disparities and obtaining optimum productivity and creativity of the workforce – transformation of population into an asset through human development projects has been the key factor of development in China.

9. In short, mobilisation of people and unleashing their productive capacities through self-governance has been major driving force behind the extraordinary socio-economic developments both in China and the United States. Political stability and steadiness of economic policies in both countries also played pivotal role in the developments under both constitutions. The American Declaration of Independence declared that dissolution of Representative Houses by the British Crown was an invasion on the right of the people. The idea was incorporated in the US Constitution by creating the standing Congress. Even otherwise, there is no justification in dissolving representative bodies as their regular elections in the US at shorter intervals ensure that the people maintain their effective voice in their government and remain the source of its legitimate powers; shorter terms of representative houses provide the members opportunity to put in their condensed contributions and enable the electors to weed out the inefficient representatives who fail to come up to the expected standards of credibility and creativity. The Constitution of China, too, adopted the idea of National People’s Congress Standing Committee for continuity of representative governance in political changes. Thus, smooth renewal of representative bodies ensures and facilitates long-term planning. Systemic stability tremendously benefited both the countries’ socio-economic systems and politics as a whole. So far, China’s incredible success is the evidence of the efficacy of its Constitutional institutions.

What role does the National People's Congress play?

In the author's account, the National People's Congress is the central organ of state power. It holds legislative power, can amend the constitution, and elects the President, the heads of the courts and procuratorate and other top officials, while its Standing Committee works as its permanent body between sessions.

10. Article 2 of the Chinese Constitution sets down: “The organs through which the people exercise state powers are the National People’s Congress and local people’s congresses at all levels”. Essentially, government of the people is the basic idea of the constitutions of both countries though the institutional structures of the governments of China and the United States are markedly different. Separation of powers with checks and balances is essential characteristics of the US Constitution. On the other hand, the state structure of China is unified, hierarchical and based on combination of powers, though it has its own unconventional checks and balances. All the same, despite combination of powers at the Centre, economic activities and delivery of services in China are optimally decentralised. Through participation of grassroots representatives of all levels of society, China met concrete development goals. Article 111 of the Constitution of the Peoples Republic of China provides insight into participatory role of Chinese population in its peculiar representative’s character.

Article 111: ‘Grass-roots government’ “The residents’ committees and villagers’ committees established among urban and rural residents on the basis of their place of residence are mass organizations of self-management at the grass roots level. The chairman, vice chairmen and members of each resident’s or villager’s committee are elected by the residents. The relationship between the residents’ and villagers’ committees and the grass roots organs of state power is prescribed by law. The residents’ and villagers’ committees establish committees for people’s mediation, public security, public health and other matters in order to manage public affairs and social services in their areas, mediate civil disputes, help maintain public order and convey residents’ opinions and demands and make suggestions to the people’s government.”

11. The National People’s Congress (NPC) is the central organ of power and has plenary legislative and executive powers, including amendment to the Constitution and its implementation. It elects the President and Vice President of China, chairpersons of specialized commissions such as Central Military Commission, the National Commission of Supervision (anti-corruption), the President of the Supreme People’s Court, the Prosecutor General of the Supreme People’s Procuratorate. In the financial field, economic planning, reviewing and approving the state budget and its implementation and allied functions are exercised by the NPC.

12. The National People’s Congress Standing Committee is the permanent working organ of NPC. NPC elects and removes about 170 members of its Standing Committee. The functions of the Standing Committee include interpretation and enforcement of the Constitution, acting and amending residuary laws, interpretations of laws, oversight of constitutional bodies, judicial review of the administrative regulations, decisions and orders of the State Council (Cabinet), review and oversight over the regulations and resolutions formulated by the local organs of powers at lower levels of the government. The standing committee acts on behalf of NPC when it is out of session. NPC and NPCSC act in harmony with other state organs rather than proceeding as the hierarchical organ of state power.

13. The State Council is the highest state administrative organ. Under Article 89(4), it exercises unified leadership over the work of local state administrative organs at all levels nationwide. It is responsible to the National People’s Congress and its Standing Committee when NPC is out of session. The President and Vice President of China implement the directions or the decisions of its Standing Committee in all administrative matters. The President of the Supreme People’s Court is also elected by NPC. The Vice President, judges and adjudicatory committees are appointed ad removed by the NPCSC on the recommendations of the President of the Supreme People’s Court. President of the military court is selected by the Standing Committee of NPC on the recommendation of President of Supreme People’s Court.

Does China's constitution have judicial review and checks and balances?

Article 131 protects court independence, but the author notes that the Supreme People's Court cannot strike down laws; interpreting the constitution belongs to the NPC Standing Committee. He argues China has its own unconventional checks instead: a very large and diverse congress, five-yearly elections without dissolution and power spread across levels of government.

14. Article 131 of the Constitution of China enshrines independence of the courts. However, mechanism of fair trial and process of law depends upon the will of NPC and its Standing Committee. Under Article 67, interpreting the Constitution and overseeing its enforcement vests in the jurisdiction of the Standing Committee of NPC. Legislation in all fields and legal interpretations are the functions of NPC and its Standing Committee. Unlike the US Supreme Court, the Supreme People’s Court of China has no power of judicial review of legislative measures, though it may play recommendatory role.

15. The Constitution of China has its peculiar inbuilt system of checks and balances. Broad base of China’s polity is itself an effective check against arbitrariness and perversion of political process. Presently, 14th National People Congress with 2,977 deputies is the largest legislative body in the world. Besides, over 2,000 members of the Chinese People’s Political Consultative Conference also participate in deliberative process. Women representatives are 25% of the deputies in the current NPC. The wide spectrum of diversity including representatives of ethnic minorities and autonomous regions balance highly centralized state power structure. Size and scale of activity are key factors of the momentum of progress. People’s self-governance itself operates as a very effective check on the state institutions; absence of specific procedural provisions for checks and balances in such political setting may not be very significant. After all, the United Kingdom effectively governed the British Empire without a written constitution. A big socio-political system works like an enormous self-propelling mechanism with its own momentum.

16. Normal term of NPC is 5 years. The NPCSC must complete elections of the deputies to the next NPC two months prior to the completion of the term of office of current NPC. As no dissolution of representative Houses comes about, no break occurs in the smooth transition of power. Diversity of competing interest and elections of the deputies based on selection of candidates on the basis of their service record by lower levels of local congresses promotes the culture of decision on merits and acts as a check against elite power capture. “A major measure of success is how well deputies and government structures serve the desire of the people for a better life”. People’s active participation in the moving and monitoring of political process is also an efficient check against concentration of power.

17. Vertical distribution of powers and functions at different levels is another factor of separation of powers. NPC is the top organ of the state power. The second level of governance consists of 34 subdivisions: 23 provinces, 5 autonomous regions, 4 municipalities and 2 special administrative units; third level is more than 300 prefectural level divisions; fourth level is more than 2,800 county-level divisions and the fifth level consists of hundreds of thousands of townships/villages as the basic level of local governments. The sub-national levels may successfully work with a fair degree of autonomy in their decision making, regulations and execution of laws. Economic growth may not be feasible without workable divisions of powers and functions. The size of population, spread of economic activities, diversity of regional interests, urban-rural divide, rights of autonomy of multi-ethnic communities and global competitiveness of mobilised and motivated population inheres inbuilt socio-political checks. China kept advancing by pursuing objectives of shared prosperity and common good. Understandably, superimposition of monolithic bureaucratic structure like that of the former Soviet Union can hardly stand for long. China’s unprecedented development is not the product of benevolent dictatorship but a vibrant social, political and economic lifestyle of the population acting as a whole. It may also be recollected how consensual democracy in the Nordic region has incredibly improved the lives and living of their people. Germany also reaped tremendous benefits of shared governance. To put it briefly, the dynamics of constitutionalism greatly depend upon the social context and political culture of a country.

18. Generally speaking, a hierarchical administrative system tends to be of monolithic nature which is a big obstacle against progress. The success of the unique governance structure of the unified state structure of China, therefore, is a case of special study. China’s five level governments: central, provincial, prefectural, district/county and village/township are all purpose governments. All the levels of governments except village/township governments are fiscal units with specified revenue and expenditure assignments. The village/township, too, have their own budgets but mostly financed from revenues transferred from higher level governments. All governments are responsible for public services as well as economic development and social affairs within their administrative areas.

19. Despite being a unitary state, distribution of powers and functions and financial plans vertically distributes powers under the leadership and supervision of NPC. Although all the sub-national levels of government act upon the laws, policies, plans and directions of NPC and its Standing Committee, yet their functional governance and economic activities are pragmatically divided. Some design of autonomy for local governance is, thus, inbuilt in the institutional framework of the Chinese Constitution.

What lessons did China draw from the fall of the Soviet Union?

The author writes that China's leaders treated the Soviet collapse as a warning. Rather than rapid privatisation, they built meritocracy and pragmatism into the system, recognised private property without full privatisation, gave collective enterprises autonomy and protected foreign investors, aiming to open the economy without a shock.

20. China’s leadership has been alive to the lessons of history. Meritocracy and pragmatism were incorporated in the constitutional provisions. The fall of the Soviet Union was taken as a warning. The highly industrialised economy of USSR was deindustrialised through the process of throwaway privatisation sales. Today, Russian economy is dependent on its natural resources like economies of other developing countries. In the opening up of the socialistic system in China, the vertical levels of governments selected best and brightest leaders for the higher levels of local governments who coordinated innovative institutional mechanisms to develop the economy without any economic shock.

21. Overemphasis on theory and conventional wisdom was steered clear and workable model of economy was pragmatically reinvented. Private property rights were recognised without contentious political debate and complications of full privatisation and ownership. Under Article 17 of the Constitution of China, collective economic organisations were permitted autonomy to independently conduct economic activities, provided they democratically elected, removed and controlled management personnel. Under Article 18, lawful rights and interests of foreign enterprises and joint ventures with local enterprises were secured. The state is under obligation to raise the scientific and cultural level of the whole nation. Human development, education, health, elimination of urban-rural disparities have remained top priorities of the state. The leadership in China is alive to the fact that the greatest asset of a country is its people. Article 19 of its Constitution envisaged revolution in education and the state developed productive human resources. Education, research, health and social security were accorded top priorities. The gap in knowledge in urban and rural areas is being increasingly reduced.

22. i) Article 14 of the Constitution of China reads:

“Article 14. Economic improvement:

The state continuously raises labour productivity, improves economic results and develops the productive forces by enhancing the enthusiasm of the working people, raising the level of their technical skill, disseminating advanced science and technology, improving the systems of economic administration and enterprise, operation and management, instituting the socialist system of responsibility in various forms and improving the organization of work. The state practises strict economy and combats waste. The state properly apportions accumulation and consumption, concerns itself with the interests of the collective and the individual as well as of the state, and on the basis of expanded production, gradually improves the material and cultural life of the people. The State establishes a sound social security system compatible with the level of economic development.”

ii) Although Article 14 ordains the establishment of a sound social security system compatible with the levels of economic developments but the volume of the problem of social security commensurate with the size of China’s population has been an ongoing process. The problem of social security in China is addressed in social terms as well. Article 45 mandates: “The State and society shall assist arrangements for the work, livelihood and education of citizens who are blind, deaf, mute or have other disabilities.” The State is obliged to develop the social insurance, social relief and medical and health services necessary for citizens to enjoy the right to material assistance from the State and society. Society, too, is required to fulfil its social obligations. Article 49 safeguards family life and prohibits mistreatment of senior citizens, women and children.

In China, the society and government work together in shared governance for social security. In case the dynamics of a constitution work for people’s active participation in the shared activities model, performance of the system is outstanding.

What challenges does China's constitutional system face?

The author lists a shrinking young population after the one-child policy, an investment-heavy growth model, debt and credit risks, pollution, a property bubble and lower productivity than advanced economies. He also records the criticism that an overcentralised state has its own fault lines, while noting that China has so far stood the test of time.

23. As China enters new stage of development, it is confronted with new formidable challenges. Its demographic crises of shrinking youth population resulting from one-child policy from 1980 to 2016 will tell upon overall productivity. Investment model of GDP growth based on excessive savings and lower consumption may no longer be sustainable. Looming financial imbroglio emanating from debt and credit crises is another critical issue. Pollution, too, has become a major health hazard. Transformation of debt-dependent economy into tax-dependent economy is another major issue. The real-estate boom bubble may burst with its serious financial implications. The issue of lower productivity in comparison with the developed western economies has also to be tackled. The objectives of more food, water and energy have to be achieved. During the Covid 19 pandemic period, China’s economy suffered serious setback due to overregulation; its ripple effects are fanning uncertainty. Due to such overregulation, critics assert that Chinese economy is closing down.

24. Effectiveness of a political system depends upon its dynamics in energising its population for availing the promises of emerging technologies and avoiding political pitfalls. The history of Argentina reveals that resources without resourcefulness fritter away; despite having tremendous potential of a super economy, it defaulted on its international sovereign debts nine times. In the ultimate analysis, success or failure of a constitutional system lies in its dynamics to unlock the capacities and capabilities of its people and optimally employ its workforce. So far, China has stood the test of time. Flexibility of the system, mobilisation of its workforce and innovative practical solutions for the emerging challenges have been the key factors of its success.

25. Reflecting upon the prospects of developments in China, Pascal Coppens, a sinologist, appreciated existing evidence and came to the conclusion that the Government of China is cognizant of all its emerging problems; it is making extraordinary efforts to meet them and has ample wriggle room to surmount the critical hurdles. The most fundamental criticism of China’s Constitutional system is that ‘overcentralised undemocratic state structure’ has its own fault lines. Often it is asserted that self-accountability of the Chinese Communist Party (CCP) has not been efficacious enough; China ranked 65 in the list of 180 countries in Transparency International Corruption Perception Index 2022. China is still not availing the distinct advantages of open debate. Pascal Coppens, however, considered that Chinese Communist Party is not as rigid as asserted by some western observers. Phenomenal success of Chinese economy shows pragmatic flexibility of its ongoing process of innovative reforms.

26. The visionary Founding Father of Singapore, Lee Kuan Yew (LKY) reflected upon “the Future of China” in his interviews published in the book: “Lee Kuan Yew: The Grand Master’s Insights on China, the United States and the World”. In his view, if China becomes a liberal democracy, it will collapse. Nevertheless, LKY foresaw that present system of China will not remain unchanged. LKY predicted that cheap means of transport and communication, exposure of Chinese people to other systems and cultures, the need for stable legal system and clear administrative rules will transform China into a modern state because arbitrariness is fatal for long-term economic planning and activity. Eventually, the enforcement of fundamental rights and rule of law will replace the long-standing traditions of the rule of the emperor

Frequently asked questions

What are the salient features of the constitution of China?

As the author describes it: all power belongs to the people (Article 2); the National People's Congress and local congresses exercise that power; the NPC Standing Committee interprets the constitution (Article 67); courts are independent but have no judicial review (Article 131); and grassroots residents' and villagers' committees are elected (Article 111).

Is China a republic?

The author argues that it is, by the Bill of Rights Institute's definition of a republic as a state where the people are the ultimate source of authority. He points to Article 2 of the Chinese constitution, which vests all power in the people.

Who interprets China's constitution?

Under Article 67, the Standing Committee of the National People's Congress interprets the constitution and oversees its enforcement. The author contrasts this with the United States, where the Supreme Court can strike down laws passed by Congress.

Can China's National People's Congress be dissolved?

No dissolution takes place. The author explains that the NPC sits for a normal term of five years and its Standing Committee must finish electing the next congress two months before that term ends, so power passes on without a break.

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• Why Constitutions Fail, and What Makes Them Flourish

Read the full argument in the book How Constitutions Flourish or Fail by Mian Ashiq Hussain.