In the past three decades, China’s legal system has undergone significant reform. But only a few empirical studies have tried to measure whether the reforms are succeeding in protecting the rights of individuals or businesses. To come up with a better understanding of how well China’s revamped legal system is performing in the protection of property rights, Minxin Pei worked with a group of researchers at the Shanghai Academy of Social Sciences to conduct two surveys of litigants in Shanghai covering 214 individuals and 190 companies. Respondents were asked a range of questions about their cases, including their preparations for trials and court proceedings.
Results of the study were mixed. While roughly half of corporate litigants admit to giving judges gifts or banquets to sway legal decisions in their favor, only 8% of litigants who lost their case thought that it was due to preferential treatment. Only one-fifth of respondents reported that rulings were fully enforced, but a majority were satisfied with the process, claiming that the outcome was consistent with their expectations.
The general picture of China’s courts this study provides is also mixed. At least in Shanghai, the system is far from perfect, yet the majority of litigants are satisfied to have a legal recourse that may help resolve commercial disputes and protect their legitimate rights. Like most other studies on China’s legal system, these two surveys confirm that China’s legal reform remains a work in progress.
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