Submitted By:  Jared Samarin

This morning’s New York Times was headlined by a topic that I believe to be a core necessity for the growth of market based economies, private property rights. The “China Moving to Approve Law That Protects Private Property“ article outlines in very brief terms the concept for a new policy that would allow for an increase to the rights of entrepreneurs and the middle class. The bill passed the annual parliament session on Friday March 16th and marks an historic change for both the Chinese government and the Chinese people. Legal protection of private property is a right often taken for granted in many parts of the world, but in China this as fresh and welcome as springtime sun.

The new policy addresses many of the concerns of past party leadership and leading scholars who have pointed out repeatedly that current economic policies have led to rampant corruption, a widening of the gap between elite and poor, and has severely taxed the environment. The hope is that this policy can induce better stewardship and create more entrepreneurial opportunities. A very important stipulation of the bill is that “The property of the state, the collective, the individual and other obligees is protected by law, and no units or individuals may infringe upon it”.  With little ambiguity this stipulates that the Chinese people, including the rural poor will finally have a legal right to what is “theirs”. This does not include real property however land is still the property of the state. This will protect the user of said properties though during the 70 years of lease that they have with the government. This landmark ruling should finally curb the illegal expropriation that has taken place for some time and the wrongful booting of people off of their land.

Traditional Socialist economies would never think of such policy, mainly because it takes from the collective and gives to an individual. Many leftist academics have bawked at the legislation that was originally introduced in 2002 and it has gone through a record eight reads at the National People’s Congress. The policy has endured many arrows but the time was finally right for some sort of ruling that protected the rights of the growing middle class, and in time hopefully the disenfranchised rural Chinese may finally be allowed to climb the ladder with such legislation. With that said I pose two major questions:

1.  Will this new policy fulfill its intended purpose by expanding the middle class and filling in the gap economic gap?

2.  Does this policy wholly abandon the ideals of Socialism as Leftist scholars are arguing, or has China already abandoned these ideals by becoming more market driven and welcoming foreign investment?