The people's congresses of the ethnic autonomy areas have the power to establish separate and autonomous regulations based on the political, economic and cultural characteristics of the local ethnic groups. The people's congresses of special economic zone cities and provinces and their standing committees are permitted, with the approval of the NPC, to establish and enforce regulations within the boundaries applicable to special economic zones.
The ministries and commissions and the directly related institutions with administrative functions of the State Council, the People's Bank of China, and the National Audit Office are permitted to issue regulations within the scope of their functions and powers and in accordance with the laws and administrative regulations, decisions and orders of the State Council. The people's governments of provinces, autonomous regions, municipalities, cities (including subordinate counties) and autonomous prefectures are permitted to establish regulations in accordance with the laws and administrative and local regulations of their provinces, autonomous regions and municipalities.
Another important legal source in China is judicial interpretations, which specifically refer to exegeses by the Supreme People's Court of the People's Republic of China and the Supreme Procuratorate of the People's Republic of China, which have universal legal effects on specific applicable law as well as on legal practice - by virtue of the legal powers conferred . Judges' interpretations have the force of law, but they must not be contrary to the Constitution or other laws. Courts can cite judicial interpretations directly in their judgments.
Although China is not among the countries that practice case law, some cases are nonetheless crucial in guiding judicial practice. Such cases are called lead cases in China, which are adjudicated by the Supreme People's Court of the People's Republic of China and the Supreme Procuratorate of the People's Republic of China. At present, the lead case system does not represent a formal legal source, but it already offers judges important guidance in comparable cases.
The legal system regarding foreign investments
China has continuously improved and expanded its legal system regarding foreign investments.
The Second Session of the 13th National People's Congress on March 15, 2019 approved the Foreign Investment Law of the People's Republic of China (hereinafter referred to as "Foreign Investment Law"), which replaced the "Three Foreign Investment Laws" as the new fundamental law governing foreign investment in China. The Foreign Investment Law establishes a basic framework of China's new foreign investment legal system, affirms that the administrative system of "national market entry procedure plus negative list" for foreign investments should be implemented, and further strengthens investment protection and promotion. In December of the same year, the State Council issued the Executive Order of the Foreign Investment Law of the People's Republic of China (hereinafter referred to as the "Executive Regulation"), which details the main legal systems defined by the Overseas Investment Law. The Foreign Investment Law and its implementing regulation came into force on January 1, 2020. From now on, foreign investments would benefit from a market environment of greater stability, transparency and reliability, as well as more competitive fairness.