National People’s Congress Passed Property Law

On March 16, 2007, the National People’s Congress passed Property Law, which will come into effect on October, 1st, 2007. Property Law constitutes five parts (19 chapters 247 articles), including General Principles, Proprietorship, Usufructaury Rights, Security Interest and Possession. The relatively more important content of the Property Law covers the following issues: Firstly, it expressly gives equal protection on state-owned, collective and private property. Secondly, it clearly sets forth the scope of state-owned property, the exercise of state ownership and strengthened protection on state-owned property. Thirdly, it provides that the individual enjoys the ownership of its real properties and chattels such as legitimate income, house, consumer goods, manufacture tools and raw materials, and it stipulates provisions regarding those issues concerned by the public, such as the owner’s portioned ownership of the building areas. Fourthly, it explicitly sets forth the issue of compensation for expropriation, e.g. it provides the reason and content of expropriation. Fifthly, it provides the possession, and specifies the protection on possession and infringement liability of adverse possessor so as to keep the social order and holder’s legitimate interests.