On the afternoon of February 25, 2019, Xi Jinping chaired the second meeting of the Central Commission for Comprehensively Governing the Country by Law. The meeting stressed: “The rule of law is the best business environment” (法治是最好的营商环境).
Not Waste Paper
On March 20, 2018, at his press conference after the National People’s Congress, Premier Li Keqiang said: “To protect property rights, we must respect contracts and promote the spirit of contract. Contracts must not be treated as waste paper.”
Double Wages
China’s Labor Contract Law, in force since January 1, 2008, says that “to establish a labor relationship, a written labor contract shall be concluded.” Under Article 82, an employer that has not concluded a written contract with a worker more than one month and less than one year after the work began must pay the worker double wages for every month.
Who Sets the Standard
San liu qiye zuo chanpin, er liu qiye zuo pinpai, yi liu qiye zuo biaozhun. Third-rate companies make products. Second-rate companies make brands. First-rate companies make standards. The business site Jiemian introduced it in 2016 as “a popular saying.”
Contract Disputes in Court
In the first half of 2019, the five largest categories of civil cases concluded by China’s courts were contract disputes, marriage and family disputes, tort liability disputes, labor disputes, and intellectual property disputes. Legal Daily reported the figures, and China News Service carried the report on August 1, 2019.
Cutting the Feet to Fit the Shoes
Ren Zhengfei, the founder of Huawei, visited IBM in 1997. In early 1999, Huawei began a reform of its product development, Integrated Product Development, designed by IBM as consultant. Ren described the policy as xue zu shi lü, cutting the feet to fit the shoes, and told the company: “The pain of cutting the feet to wear the American shoes well is repaid by the joy of a system that runs smoothly.”
The reform was summed up in a slogan: “First rigidify, then optimize, then solidify. Whoever does not change his thinking is replaced.”
New Officials and Old Accounts
Article 31 of the State Council’s Regulations on Optimizing the Business Environment, in force since January 1, 2020, says that local governments must keep their policy commitments and contracts with businesses. They may not break them “on the grounds of changes in administrative divisions, a change of government, adjustments of institutions or functions, or a change of the persons responsible.”
In 2023, the National Development and Reform Commission called for action against 新官不理旧账, “new officials ignoring old accounts,” and against 朝令夕改, orders changed between morning and evening.
Keep Promises
Article 7 of China’s Civil Code says: 民事主体从事民事活动，应当遵循诚信原则，秉持诚实，恪守承诺. “Parties engaged in civil activities shall follow the principle of good faith, uphold honesty and keep their promises.” The National People’s Congress adopted the Civil Code on May 28, 2020.