Mediation in China as an Alternative Dispute Resolution Method / History and Rec…
The Standing Committee of the National People’s Congress (NPCSC) of the People’s Republic of China recently released its 2025 Legislative Work Plan.
I. What Is the Legislative Work Plan?
The PRC is a country in a state of journeying, aiming at an ultimate ideal which is identified with communism through a series of intermediate steps. From a legal point of view, the underlying mindset implies on one hand the CPC leadership as a constitutional principle, on the other hand a legislation work that by meeting annual objectives and systematically implementing successive five-year plans.
In this step-by-step journey mindset, the last intermediate, the CPC regards that the goal of “solving the problem of extreme poverty and creating a moderately prosperous society” has been achived in 2021. The current goal will be to achieve “basic socialist modernization” by 2035, i.e., in the space of two five-year plans.
The broader vision extends to the middle of the century, with the goal of “transforming China into a modern socialist country that is prosperous, democratic, culturally advanced, harmonious, and beautiful—ultimately contributing to the realization of national rejuvenation”, which in more immediately practical terms will probably mean:
II. What Are the Highlights of This Year’s Plan?
The 2025 legislative plan carries particular significance. As the final year of the 14th Five-Year Plan (2021–2025), it not only marks the conclusion of existing initiatives but also sets the stage for the next phase of national development. This year's legislative work shows not just the direction of 2025 but also hints at the country’s longer-term priorities.
In fact, based on the mid-term evaluation of the 14th Five-Year Plan and the 2035 long-range goals, initial directions for the 15th Five-Year Plan (2026-2030) are already taking shape. These include a continued emphasis on innovation-driven growth, green and low-carbon development, and the digital transformation of industries. Broader strategies aim to boost domestic consumption, unlock investment potential, and strengthen research in core technologies for strategic sectors. China is also expected to deepen support for enterprise innovation, enhance talent attraction, and further improve the overall business environment.
In line with these strategic objectives, the 2025 legislative plan has been structured to reflect and support national priorities. It is divided into six sections, with the second section—Drafting and Reviewing Legislation—serving as the core component. The laws listed in this section are closely tied to the major goals of the 14th Five-Year Plan. I summarize them as follows:
Major 14th Five-Year Plan Goals | 2025 Legislative Work Plan: Laws for Review or Drafting |
| New Achievements in Economic Development | Goal: Improve institutional mechanisms to advance high-quality development Draft: Private Economy Promotion Law, National Development Planning Law, Finance Law, Financial Stability Law, Farmland Protection and Quality Improvement Law Amend: Anti-Unfair Competition Law, Enterprise Bankruptcy Law, Bidding and Tendering Law, Agriculture Law, Fisheries Law, Civil Aviation Law, Law of the People's Bank of China, Banking Supervision and Administration Law |
| Enhanced Efficiency in National Governance | Goal: Strengthen the institutional framework for whole-process people's democracy Amend: Villagers' Committee Organization Law, Urban Residents' Committee Organization Law
Goal: Strengthen national security and public safety governance mechanisms Draft: Atomic Energy Law, Public Health Emergency Response Law, Hazardous Chemicals Safety Law. Amend: Public Security Administration Punishment Law, Prison Law, State Compensation Law, Cybersecurity Law
|
| Higher Standards of Social Civilization | Goal: Build a cohesive Chinese national community; Strengthen China as a modern socialist cultural powerhouse Draft: Ethnic Unity and Progress Promotion Law, Legal Education and Publicity Law. Amend: National Common Language and Script Law |
| Improved Livelihoods and Public Welfare | Goal: Enhance systems to safeguard and improve public welfare Draft: Social Assistance Law, Childcare Services Law, Procuratorial Public Interest Litigation Law. Amend: Infectious Disease Prevention Law, Road Traffic Law, Food Safety Law |
| New Progress in Ecological Conservation | Goal: Refine legal frameworks for ecological civilization Continue: Environmental Code compilation Draft: National Parks Law |
| Reform and Opening Up Advance Further | Goal: Strengthen foreign-related legal frameworks and international engagement Amend: Maritime Law, Foreign Trade Law, Arbitration Law |
III. How Should We View This Year’s Plan?
First, the key focus remains economic development and high-quality growth. That is also the legislative priority.
After the Deng Xiaoping’s reforms, China’s rapid growth came from structural acceleration—more labour, more factories, and better use of resources. Labour participation rose, industrial technology spread, and capital moved from agriculture to manufacturing. In recent years, China has entered a phase of structural slowdown. Labor participation is falling. Returns on capital are declining. Innovation in manufacturing is hitting limits. Service industries and traditional sectors face increasing pressure to upgrade. As quantity reaches a ceiling, quality must take over.
China’s most pressing economic challenge probably lies in structural overcapacity—an excess of production capacity relative to domestic demand. This imbalance, I believe, underscores that selling to China is harder than buying from China. Should foreign enterprises nevertheless seek to enter this market, the critical question becomes: What unique value can they offer?
Examining China’s legislative priorities provides clarity. While certain themes—such as democratic governance, national unity, and security frameworks—lie beyond the immediate concerns of foreign investors, others align directly with evolving societal aspirations, with increase emphasis on quality of life, cultural enrichment, and environmental stewardship. In particular:
To stand out in the Chinese market, a product must offer a clearly articulated advantage over domestic alternatives. Competing on price alone is difficult. Instead, emphasis should be placed on what sets your product apart—whether in quality, distinctiveness, or overall appeal.
IV. Conclusion
In recent years, China has continued to move gradually forward with its policy of reform and opening-up, taking steps to enhance its legal and regulatory environment in ways that facilitate greater international engagement. While the country is steadily expanding its cooperation with foreign partners and easing access for international business and travel, it continues to maintain a distinction between purely domestic matters and those with a foreign or cross-border dimension. In Particular:
The 2020 Foreign Investment Law abolished the legal distinction between foreign-invested companies and purely domestic companies.
From 2021 to 2022, China amended many laws to deepen reform and opening-up. Examples include the Hainan Free Trade Port Law and the Customs Law.
In 2024 and 2025, foreign-related legislation is gaining momentum. The 2024 legislative plan emphasized improving foreign-related legal frameworks. New laws and amendments focused on customs, quarantine, anti-money laundering, and foreign-related provisions.
In 2025, China has submitted to the NPC Standing Committee amendments to the Foreign Trade Law. It has also issued regulations on foreign-related intellectual property disputes, mediation guidelines, and new rules for using the national emblem abroad. Further revisions are expected to laws on immigration, customs, technology imports and exports, labour cooperation, and international shipping. Legislation on outbound investment is underway. China is also engaging in treaty review and international legal reform to promote peace and global development.
Additionally, China is implementing visa-free and visa facilitation policies: it has signed comprehensive visa exemption agreements with 26 countries, unilaterally offers 30-day visa-free entry to citizens of 43 countries including France, Germany, and Italy, and from 17 December 2024, China will introduce a new transit visa exemption policy for citizens of 54 countries. This policy extends the transit stay period to 240 hours (10 days) and adds 21 new ports for visa-free transit entry and exit.
Overall, China's ongoing legal reforms demonstrate a constructive openness toward international cooperation, particularly in areas such as trade, investment, intellectual property, and people-to-people exchanges.
