| In 2003, Li Huijuan (李惠娟), a female judge at the Luoyang Municipal Intermediate
People’s Court in Henan Province (河南省洛阳市中级人民法院) nearly lost
her job for declaring in a civil case that provisions of certain
local regulations were invalid due to their conflict with a
national law. The incident, which received wide media coverage
in China and became the subject of much debate in legal circles,
underscores the lack of a workable mechanism to resolve conflicts
between national and local (lower-level) laws under the current
legal and political system. The case in question involved a
contract dispute over the delivery of corn seed between a seed
propagator and a buyer. The issue facing the panel of judges
hearing the case was whether they should, in calculating damages,
apply market price for the corn seed in accordance with provisions
of the PRC Seed Law (种子法) or follow the “government-set price
range” (政府指导价) set forth under the local seed pricing regulations
approved by the Henan Province People’s Congress (河南省人大), the local legislative body. Judge Li, who presided over the panel, rejected the
pricing provisions of the local regulations on the ground that
they conflicted with the national Seed Law. In so declaring,
Judge Li and another judge who approved the language in her
ruling, drew strong criticism from leaders of the Henan Province
People’s Congress. They were accused of encroaching upon the
legislative authority by engaging in illegal judicial review
and therefore violating the law. The legislative body also
demanded that the Luoyang court remove the judges from their
posts. The local court initially heeded such demand by removing
the judges but later, faced with mounting media outcry over
the harshness of its decision, backed down and reinstated the
judges. (Sources: 21st Century Economic Report 《21世纪经济报道》,
November 17, 2003 and China Youth Daily《中国青年报》, February 6,
2004)
Judge Li defended her decision by
citing Article 64 of China’s Law on Legislation (立法法), which
provides that “where a national law or administrative regulation
enacted by the state has come into force, any provision in
the local decree which contravenes it shall be invalid”.
(China Youth Daily, id.) However, the Henan Province People’s
Congress and court officials both maintained and many experts
agreed, that under China’s constitutional and legal framework,
only the Standing Committee of the National People’s Congress
(全国人民代表大会常务委员会) has the authority to adjudicate conflicts
between local regulations and national laws. The appropriate
way for courts to handle conflict of laws cases, according
to a senior judge at the Luoyang court, is to suspend the
adjudication process and report the conflict to the Supreme
People’s Court, which shall then refer the matter to the
Standing Committee for final adjudication. (21st Century
Economic Report, id.) In reality, the Standing Committee,
which convenes every two months for five to seven days each time, rarely fulfills its review function. According
to Professor Jiang Ping (江平) of the China University of Politics
and Law (中国政法大学), the Standing Committee had never revoked
any conflicting local regulations; nor were there any detailed
procedures in place for reviewing conflicting local laws.
(21st Century Economic Report, id.) The reason that the national
legislative body had not been flooded with requests from
courts to review inconsistent local regulations, according
to another legal scholar Cai Dingjian (蔡定剑), is that in practice,
many courts simply apply the law with the higher legal authority
while keeping silent on the reason of their rulings, thereby
sidestepping the issue of improper judicial review. (Legal
Daily《法制日报》, November 20, 2003)
A case in point was a lawsuit filed
by a blind man at the Beijing Xicheng District People’s Court
(北京市西城区人民法院) alleging that the Beijing subway authority had
violated China’s Law on the Protection of Disabled Persons
(残疾人保护法) by requiring him to pay subway fare. The subway
authority defended its practice as being consistent with
the regulations issued by the Beijing Municipal People’s
Government (北京市人民政府) which permitted free rides only to those
who could produce a disability certificate issued by the
Beijing government agency in charge. The court ruled that
the plaintiff, who was visiting Beijing at the time and did
not possess the requisite disability certificate, was entitled
to the free ride in accordance with the national law, but
the defendant did not err in following the local regulations.
The court admonished the defendant, however, that when dealing
with disabled passengers from outside Beijing, it “should
have handled the situation more appropriately from the perspective
of strengthening the protection of the legal rights of the disabled and of giving those from outside Beijing
the same privilege as those from Beijing”. (Qianlong.com
千龙网, January 3, 2004) An unnamed delegate to the National
People’s
Congress observed that had Judge Li taken the same approach
as the Beijing court, instead of expressly citing conflict
of laws as grounds for the court’s decision, her ruling would
not have generated such controversy. This view was shared
by many judges. (21st Century Economic Report, id.)
As more new laws and regulations are
being promulgated in China by governments at all levels,
the amount of conflict and inconsistencies between local
and national legislation have also increased considerably,
“causing confusion and new difficulties in the application
of the laws”. (www.china.org.cn 中国网, February 5, 2004) As
a result, more administrative adjudication suits (行政诉讼案)
are being brought by citizens seeking to reverse government
actions based on local regulations that conflict with national
laws. However, under China’s Administrative Adjudication
Law《行政诉讼法》 (1990) pursuant to which these suits were filed,
judicial review is limited to “concrete administrative action”
(具体行政行为) and does not reach “abstract administrative action”
(抽象行政行为). Local regulations, which often dictate the government’s
“concrete action”, generally fall under the category of “abstract
administrative action”. In dealing with such conflict of
laws issues, local courts generally either decline to consider
the claims or quietly follow the national laws as the Beijing court did in the subway fare case, resulting
in much uncertainty for litigants. In the last two years,
the local courts in Guangdong Province (广东省) and Zhejiang
Province (浙江省), citing lack of reviewing authority, refused
to consider two height discrimination suits involving challenges
to the provincial governments’ civil service hiring practices
and policies. At the same time, the court in an Anhui (安徽省)
Hepatitis B discrimination case entertained similar claims
and substantively reviewed the validity of the local regulation
in question. (See discussions in the “Main Feature” column
of this issue). In 2003, a well-publicized case in Nanjing,
Jiangsu Province (江苏省南京市) that sought to force a local government
to amend its outdated rules was rejected by the local court,
dashing the hope by many in China that the case would set
a precedent for judicial review of local regulations. In
that case, a company sued a district-level government in
Nanjing for its failure to amend an outdated rule on compensation for forcible home demolition (拆迁补偿) that conflicted
with newer and higher level regulations issued by the Nanjing
municipal government. The court ruled that the “promulgation,
revocation and amendment of the local government rule” in
question were “abstract administrative action” not subject
to judicial review. (Source: China Youth Daily, June 13,
2003)
The lack of review mechanism for conflicting
or inconsistent local regulations has prompted calls for
expanding the courts’ judicial review authority. As Professor
Jiang Ming’an (姜明安) of Peking University Law School (北京大学法学院)
pointed out: “Given that the Constitution has set forth the
principle of judicial unity and that the Law on Legislation
has stipulated the hierarchy of [our] laws, regulations and
rules, when a court faces two conflicting laws on the same
issue during the adjudication process, it should be allowed
to choose the applicable law of the higher legal authority;
it should not be required to submit the issue to higher levels
of courts, to the point that it must wait for a final answer
from the Standing Committee of the National People’s Congress.”
(21st Century Economic Report, December 27, 2003) Others
have proposed to amend the Administrative Adjudication Law
to allow courts to review local regulations and to grant
the Supreme People’s Court (最高人民法院) the final adjudication
authority with respect to the validity of local regulations and the related conflict of laws issues.
(See Zhang Xiaoling (张小玲), “Constitutional Considerations
Regarding the Li Huijuan Incident” “对李慧娟事件的宪法思考”, http://www.law-lib.com,
November 22, 2003 and Han Zhe (韩哲), “Establishing a Sound
Adjudication Mechanism for Conflicts of Law” “建立法律冲突的良性解决机制”,
21st Century Economic Report, November 24, 2003) Whether
such changes could be effected any time soon will depend
on the pace of China’s political reform and whether some
element of checks and balances will be introduced into the
current political and legal structure. Even if the Chinese
judiciary were granted the power to review local regulations,
it would be hard to expect local judges, who are usually
appointed and paid by local governments, not to side with
local interests when faced with conflict between local and
national laws.
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| It started out as a petty theft. In August 2003, four migrant workers were
caught stealing 25 kilograms of grapes after helping themselves
to generous portions of the exceptionally tasty morsels from
a fenced-in garden in Beijing. Little did they know that the
grapes were part of a nearly completed ten-year RMB400,000
(US$50,000) research project at the Beijing Academy of Agriculture
and Forestry (北京农林科学院). Determining the value of the stolen
grapes and what crime, if any, the migrant workers had committed
turned out to be quite a challenge for both the police and
the prosecutors. Under provisions of China’s criminal law,
the threshold for criminal theft charges in cities such as
Beijing is RMB1,000 (US$125) with a maximum of three-year sentence;
if the amount of the theft exceeds RMB10,000 (US$1,250), the
jail term maybe as long as ten years. The researchers claimed
that the theft had destroyed the chain of their research, causing
irrevocable damage on the eve of the grapes being certified
for commercial production. However, because their work was still at the research stage, the grapes
did not have any readily available market value. After consulting
with legal experts and obtaining an official valuation from
the Beijing Pricing Bureau (北京物价局), the police determined that
the direct economic loss incurred by the grape theft was RMB11,220
(US$1,402.5), representing the loss of researchers’ time and
labor, cultivation expenses and the loss of the integrity of
an entire year’s research as a result of some of the grapes
being consumed. Based on this price tag, the Beijing Haidian
District People’s Procuratorate (北京市海淀区检察院) formally charged
three of the four migrant workers with criminal theft in September
2003, earning the case the nickname, the “Case of the Priceless
Grapes” (天价葡萄案). In January 2004, it was revealed that the
prosecutors, still unsatisfied with the valuation provided
by the police, ordered further investigations into the matter.
From the outset, legal experts, including those consulted by the police and the
prosecutors, questioned whether the migrant workers’ minor
transgression without knowing the value of the grapes would
amount to criminal theft in the first place. According to
one expert, whether or not a court would accept the valuation
submitted by the prosecutors would determine whether the
charges could stand against the migrant workers and the amount
of sentencing they would receive if convicted. Until then,
the migrant workers already paid dearly for their fancy taste:
they have been under arrest since August 2003 and under the
PRC criminal law, in cases involving complex evidentiary
issues, criminal suspects can be held for up to 14 months
before trial. (Sources: Beijing Youth Daily 《北京青年报》, August
22, 2003 and January 15, 2004)
The New Beijing Daily《新京报》 reported
on May 28, 2004 that, after further investigations, the police
reset the value of grapes at several hundred yuan and the
three migrant workers would soon be released on bail and
the case against them will likely be dropped.
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