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Chapter Summary

On March 15, 1999, the National People's Congress of China (NPC) - the Chinese national legislative body-adopted the Law of Contract of the People's Republic of China (Contract Law). The process of cleaning-up of the old laws actually began in January 1949 when the Chinese Communist Party (CCP) issued an announcement to be put forward on the table for the peace talks with the Kuomingtong (KMT), which demanded the abolishment of the constitution and laws adopted under the KMT regime. Mao Ze Dong highly appraised the abolishment of the KMT legal system and poetically described the new system that replaced the old one as a piece of "Plain Paper". The contract law legislation in China began in 1980 when the Economic Contract Law (ECL) was drafted. The fast-going economic reform in China posed great challenges to the coexistence of different contract laws that caused difficulties in application.

Keywords: Chinese communist party (CCP); Chinese national legislative; contract law legislation; economic contract law (ECL); economic reform; Kuomingtong (KMT) legal system

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