For years, Western narratives have painted China as a nation devoid of a robust legal structure, often portraying it as an economic powerhouse operating in a "Wild West" of arbitrary rules. While this characterization may resonate in some circles, it oversimplifies a complex reality and ignores significant progress.  

That is not to say that China's legal system is without flaws. Concerns over politicization of laws, selective enforcement, and limited checks from outside government institutions persist, and in some regions, challenges remain in ensuring transparency and accountability. Yet, dismissing China's evolving legal system outright overlooks its tangible advancements. Recent reports from China's Supreme People's Court and Supreme People's Procuratorate (SPP) reveal a system undergoing a subtle but meaningful transformation – strengthening intellectual property protections and reinforcing social and environmental progress.

Intellectual property: A legal shield for innovation  

The old Western accusation that China is a haven for intellectual property theft is increasingly outdated, if not misleading. The 494,000 intellectual property-related cases adjudicated in 2024 tell a different story. When asked by my friends in the West how China has become a global leader in artificial intelligence (AI) and advanced manufacturing such as electric vehicle production, I often point to three key factors: decades of relentless focus on STEM education, an industrious and resilient workforce and an enabling government actively cultivating innovation through supportive policies and legal frameworks.

A major 2024 case highlights this, where a court ordered 640 million Chinese yuan ($89 million) in compensation to a company in a trade secret dispute over theft of new energy vehicle technology. This case underscores China's growing commitment to punishing infringement.

China's rise as a leader in AI, green technology and digital industries is no accident. It is partly the result of a legal framework that not only protects but also incentivizes innovation. With over 3.5 million patent applications processed in 2024, China's legal system is fostering an environment where companies like Huawei and BYD can thrive without fear of losing their competitive edge.  

In particular, China has been actively prosecuting AI-related intellectual property violations, ensuring that innovations in machine learning, generative AI and automation remain legally protected. In 2024, 1,233 AI-related lawsuits were adjudicated, marking a 32.3 percent increase compared to previous years. These rulings reinforce the value of proprietary AI algorithms and data models as essential business assets. According to the World Intellectual Property Organization, between 2018 and 2022, China consistently accounted for over 70 percent of global AI patent filings.

This legal and technological momentum translates into real-world competitive advantages. Chinese AI firm DeepSeek trained its V3 model at a cost of approximately $6 million, a fraction of the $100 million spent on OpenAI's GPT-4. While this cost efficiency reflects China's growing capabilities, it also highlights the need for continued scrutiny to ensure ethical and sustainable development in the AI sector.  

Social and environmental protections: The devil is in the details  

Critics often portray China as an environmental villain, but the reality is more nuanced. The Chinese SPP's report highlights 36,000 prosecutions for ecological crimes and 57,000 public interest lawsuits.

Consider the case in Jiangsu Province, where a factory was prosecuted for discharging cyanide-laced wastewater into the Yangtze River, threatening the drinking water of millions. Or the case in Yunnan Province, where loggers were fined and imprisoned for illegally cutting down century-old trees in a protected rainforest, home to endangered species like the Asian elephant. These cases are not just about punishing crimes; they are about protecting communities and ecosystems that depend on these resources.

Public interest lawsuits have also played a pivotal role. In Qinghai Province, a lawsuit forced a mining company to restore a 1,000-acre grassland it had destroyed, reviving a critical habitat for migratory birds. In Fujian Province, a chemical plant was held accountable for contaminating farmland with heavy metals, resulting in a multi-million-dollar cleanup and compensation for affected farmers.

China's efforts in sustainability are further underscored by its leadership in renewable energy, accounting for 60 percent of the world's installed capacity. However, it is the enforcement of environmental laws – prosecuting polluters and restoring damaged ecosystems – that ensures these efforts are more than just rhetoric. This legal rigor supports China's pledge to achieve carbon neutrality by 2060, aligning with the UN's Sustainable Development Goals.

That said, challenges remain. Enforcement gaps persist and some companies continue to engage in environmentally harmful practices. While the trajectory is promising, sustained efforts are needed to fully integrate sustainability and corporate accountability into China's legal fabric.  

Plea-bargaining: A pragmatic judicial reform  

A significant yet underreported reform in China's legal system is the introduction of plea bargaining, which aims to balance judicial efficiency with fairness. Officially introduced in 2018, this system allows defendants to voluntarily confess to their alleged crimes in exchange for potentially more lenient sentencing, provided the agreement is approved by a judge.  

In 2024, the SPP reported that 86.9 percent of criminal suspects entered plea agreements at the prosecutorial stage. This shift has reduced court backlogs and saved judicial resources, while ensuring that cases are still handled relatively fairly, though genuine efforts must be made to prevent potential coercion and ensure rights of the defendants.

Plea-bargaining is not unique to China. In the United States, nearly 98 percent of convictions result from guilty pleas, according to a 2023 report by the American Bar Association. In Europe, France introduced the "comparution sur reconnaissance préalable de culpabilité" in 2004, allowing defendants to plead guilty in exchange for a proposed sentence, which must then be approved by a judge.

Similarly, Italy has implemented plea bargaining procedures, as evidenced by the recent case of Giovanni Toti, the former governor of Liguria, who agreed to a plea deal in a case in September 2024. A global survey of 174 jurisdictions found that 101 have formalized plea-bargaining procedures, highlighting its widespread adoption.  

Li Zhanzhou of China's Supreme People's Procuratorate has been a key advocate for China's plea-bargaining system. In a 2019 article published in "Study Times," he outlined how China's model differs from its Western counterparts, emphasizing judicial oversight and protections against coerced confessions.

A legal system in transition  

China's latest legal reports should prompt a reevaluation of outdated narratives. From bolstering intellectual property protections and enforcing environmental laws to advancing AI litigation and reforming criminal justice, China's legal system is evolving in ways that reflect both its ambitions and its challenges.  

While there is still room for improvement, the progress made so far underscores a system that is adapting to the demands of a rapidly changing society. For Western critics, the challenge is to move beyond stereotypes and engage with China's legal evolution in all its complexity.  

Wang Guan

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