The sources of legal rules are as follows:
a) Constitution: The Constitution was promulgated in 1982 and was amended in 1988 and 1993. In a broad sense, it includes the statute of the Constitution, law of election, organic laws of the people's congresses, of the State Council, of the local governments, of the people's courts and of the people's procuratorates.
Although the Constitution is regarded as the paramount law in the country, it nevertheless cannot be quoted in judicial verdicts and administrative decisions as a direct legal ground for solving concrete disputes and problems. It is therefore out of direct touch with daily legal practice and operation and is regarded as being of a general and vague nature. Since it has no direct applicable effects, review of other legal rules and governmental practice on the basis of constitutionality have been both politically and technically problematic.
b) Law (Falu): All legal documents promulgated by the NPC and its Standing Committee belongs to the category of law which includes laws, decisions, (often containing state policies) and ratified international treaties. Law could be further divided into two sub-categories, one is basic laws which are enacted by the general meetings of the NPC and have a general impact throughout the nation; the rest are non-basic laws which are enacted by the Standing Committee of the NPC and have a wide impact in certain areas only.
c) Administrative Regulations (xingzheng fagui): This refers to the legal documents made by the State Council (sometimes together with the Communist Party). As the central administration of the country, the State Council has the power to enact rules concerning important issues of the country provided they shall not contravene the Constitution and the law. On most occasions, they are detailed rules for implementing laws, on other occasions, they are experimental rules where there are no governing laws.
d) Administrative Rules (xinzheng guizhang): This category includes regulatory rules issued by the ministries, commissions and departments of the State Council. These governmental organs are administrative branches which have the power to issue rules regarding affairs and matters under their respective administration. From a practical perspective, this set of rules is very important for it provides detailed procedures, standards and requirements for practitioners. For example, rules issued by the Ministry of Foreign Trade and Economic Cooperation are very useful for practical issues regarding foreign investment and foreign trade.
e) Local Regulations (difang fagui): The local people's congress and their respective standing committees enact local regulations. Their effects shall be confined within their respective geographical territories. The local people's congress and their standing committees are found at the provincial, county, large city and city level which are the capitals of provinces and are authorized by the Standing Committee of the NPC.
f) Local Administrative Rules (difang xingzheng guizhang): This category includes regulatory rules issued by provincial, city and county governments and their administrative branches. They are detailed rules for implementing national laws, and regulations and local regulations in their respective areas.
g) Autonomous Regulations and Special Regulations (difang zizhi tiaoli he danxing tiaoli): According to the Constitution, the people's congress and their respective standing committees of autonomous areas of all levels (autonomous regions prefectures and counties), have the power to enact autonomous regulations and special regulations which shall not contravene the Constitution but may adopt flexible and different rules according to their special local conditions and customs.
h) Autonomous Rules (difang zizhi guizhang): Although there are no special provisions defining the legislative powers of the autonomous governments, they in practice, have similar power to the local governments to make rules regulating affairs and matters under their daily administration.
i) Regulations By Special Economic Zones (jingji tequ fagui): Special economic zones are the places circumscribed by the Standing Committee of the NPC for the purpose of promoting foreign investment and attracting foreign technology.
j) Judicial Interpretation (sifa jieshi): Judicial interpretation consists of detailed rules for implementing laws and regulations. Judicial guidance to resolve issues encountered in the process of application of law, answers to specific questions raised by lower courts and procuratorates, etc. by the Supreme People's court and the Supreme People's Procuratorate. According to law, the Supreme People's Court and the Supreme People's Procuratorate have the power to issue judicial interpretations on questions concerning specific application of laws and regulations in judicial proceedings. In theory, these interpretations are only binding over the judicial branches, but in practice they have a wider range of application in all kinds of dispute resolutions throughout the country, such as administrative proceedings and arbitration. Judicial decisions are not legally binding over later cases, but the decisions published or approved by the two supreme judicial organs have de facto influence over the thinking of all judges and prosecutors. In times, when there are no explicit legal rules, judicial verdicts inevitably provide some guidance.
k) Hong Kong Basic Law (xianggang jiben fa): Hong Kong Basic Law is a new category, which has occurred with the invention of the policy of "one country two systems". After the return of sovereignty over Hong Kong to China, the judicial system previously practiced in Hong Kong has been maintained, which is distinct from the system in the mainland, but functions under the PRC Constitution and within the framework of one country. Since it provides the foundation for safeguarding the Common Law System of Hong Kong and serve as a bridge between two entirely different legal systems, its position in the PRC legal system is unique.
l) Common Practice: In every jurisdiction, there are informal parts or elements within the formal legal system. In the Chinese legal system, informal elements also exist as hidden rules or procedures. For example, the law does not explicitly stipulate whether lawyers can meet the judges before open trials. In practice, many lawyers meet the judges to discuss their cases in order to influence the judge's opinions. Without knowing these common practices, parties and legal counsels find it difficult to apply the legal rules efficiently and effectively.
m) International Treaties: Once China becomes a signatory party to an international treaty, the treaty becomes an integral part of the system except for the articles over which China makes reservations.
