Through more than 70 years of unremitting joint efforts since the founding of the People's Republic of China and 40-plus years of reform and opening up, a socialist legal system with Chinese characteristics has taken shape. The building of a law-based government has steadily progressed. The judicial system continues to improve. Across the Chinese society, the awareness of the rule of law has been increased significantly.

As an inseparable whole underpinned by Constitution of the People's Republic of China, the Chinese Legal System consists of constitutional, civil and commercial laws, administrative, economic, social and criminal laws, litigation and non-litigation procedural laws, as well as other legal branches. Administrative and local regulations are integral part of the legal system. The Constitution is the fundamental law of the country, assuming the ultimate commanding position in the socialist system of laws with Chinese characteristics. People of all ethnic groups, all government agencies, the armed forces, all political parties or public organizations, and all enterprises and public institutions within China must take the Constitution as the basic standard of conduct and have a duty to uphold the dignity of the Constitution and ensure its implementation. The Constitution has supreme legal authority in the socialist system of laws with Chinese characteristics. All laws, administrative and local regulations must be made in accordance with the Constitution and must not contravene the Constitution.

The NPC and NPCSC exercise the legislative power of the State. The laws enacted by the NPC and NPCSC establish the important and basic legal systems in China's economic, political, cultural, social, and ecological development. They constitute the main body of the socialist system of laws with Chinese characteristics. The laws must not be contravened by administrative or local regulations.

The State Council formulates administrative regulations in accordance with the Constitution and laws. Administrative regulations may regulate matters concerning the implementation of the provisions of the laws and the performance of the administrative functions and powers of the State Council. For matters to be governed by laws formulated by the NPC and NPCSC, the State Council may enact administrative regulations first in its place with authorization from the NPC and NPCSC.

The people's congresses and their standing committees of provinces, autonomous regions, municipalities, cities with subordinate districts, and autonomous prefectures may, in accordance with the Constitution and laws, formulate local regulations. The people's congresses of ethnic autonomous areas have the power to formulate autonomous and separate regulations on the basis of the political, economic, and cultural characteristics of the local ethnic group(s). The people's congresses and their standing committees of the provinces and cities where special economic zones are located may, upon authorization by the NPC, formulate and enforce regulations within the special economic zones.

The ministries and commissions, and directly affiliated institutions with the administrative functions and legally mandated institutions of the State Council, the People's Bank of China, and the National Audit Office may formulate regulations within the scope of their functions and powers and in accordance with laws and the administrative regulations, decisions, and orders of the State Council. The people's governments of provinces, autonomous regions, municipalities, cities with subordinate districts, and autonomous prefectures may formulate regulations in accordance with laws, and the administrative and local regulations of their provinces, autonomous regions, and municipalities.

The judicial interpretation is also an important source of law in China. The judicial interpretation of Chinese laws specifically refers to interpretations made by the Supreme People's Court of the People's Republic of China and the Supreme People's Procuratorate that have universal judicial effects on the specific governing laws and procuratorial work based on the powers granted by laws. The judicial interpretation has legal effect, but it shall not contravene the Constitution and laws. Courts can directly quote judicial interpretations as the basis for judgment.

Although China is not a country that practices case law, some judicial cases are effective guidance for judicial practice. Such judicial cases in China are called Guiding Cases, and are issued by the Supreme People's Court of the People's Republic of China and the Supreme People's Procuratorate. As of now, the Guiding Case system is not a formal source of law, but it provides important references for judges dealing with similar cases.