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Specific Issues Focus of Property Law Debate
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Chinese lawmakers have achieved an ideological consensus on the proposed property law, after the latest version of the text upheld the equal protection of state and private property.

On Wednesday, debates on the draft law, which is in its fifth reading in the top legislature, moved on to specific issues such as the ownership of parking space, the transfer of rural housing, and the law's coverage of rivers and oceans.

"I totally agree with the revision that confirms the dominant role of state ownership," said Huang Jinsong, a deputy to the National People's Congress (NPC), referring to the clause that has been added to punish managers responsible for frittering away assets in state firms.

Drafters said the clause was introduced amid mounting public anger over poor management of state firms and rampant corruption that had resulted in very significant losses.

Placing state ownership at the core of the system has appeased opponents of the draft law who earlier claimed that the law, the country's first law specifically to protect private ownership, would undermine the legal foundation of China's socialist economy.

This worry is believed to be the major reason for the withdrawal of the draft law from the NPC full session in March, as legislative sources said important differences existed on the understanding of key issues.

"I think the revision is excellent. It seems that the opinions of most lawmakers are no longer in conflict on the issue," said Yang Xingfu, member of the NPC Standing Committee.

However the debate is not over, as lawmakers still hold different opinions on specific issues of the sweeping law.

Some lawmakers said the law should allow some urban residents to buy or build houses on land set aside for residential construction in rural areas.

"A lot of urban residents have been buying houses in the countryside in their search for cleaner air and clearer water, and this has become a trend," Yang said. "How can we deal with the houses they bought if this kind of operation is banned by the law?"

Wan Xuewen, another NPC lawmaker, echoed Yang's opinion, saying that there are also some villages that sell rural houses at lower prices to attract high-tech talents or capable teachers from cities.

His opinion was opposed by Yang Xinre, a member of NPC's Agriculture and Rural Affairs Committee, who contended that if the law made such exceptions, more urban residents would rush to buy rural houses leaving farmers no place to live on.

There has been controversy over whether the draft would allow farmers to mortgage farmland and in what conditions the government could requisition urban residential land.

Hu Kangsheng, vice chairman of the NPC's Legal Affairs Committee, said at this point farmland mortgages could not be approved and the property law would not deal with the issue of land requisition.

The draft stipulates that the government could only requisition land for public interest but the definition of "public interest" in this context would be dealt with at a later stage, Hu said.

Hu said the draft made clear that reasonable compensation would be offered to people who lost their houses in the requisition deals.

Despite ongoing disputes on several specific issues, many lawmakers on Wednesday said the draft was almost ready to be voted.

"After years of discussion, I think the draft is relatively well-balanced, and I suggest the NPC endorse the law soon," said Cui Lintao, a lawmaker from the Shaanxi provincial legislature, who was invited to hear the panel discussion on Wednesday.

The draft law was first submitted to the top legislature in 2002 and has gone through a rare fifth reading. Lawmakers have listened to the suggestions of more than 15,000 people of the general public.

Legislative sources said the law would hopefully be passed during the full NPC session next year.

(Xinhua News Agency August 24, 2006)

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