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It would be marvellous if China did actually start operating courts which operate according to the 'rule of law' as it is commonly understood in this country. However it is difficult to see that courts are independent of the central authorities:

Legislative processes: the National People's Congress (NPC) and its Standing Committee have the power to pass laws on behalf of the state. The NPC can amend the Constitution and enact and amend basic laws governing state departments and public civil and criminal matters. The Standing Committee of the NPC has the power to interpret, enact and amend laws other than those which must be enacted by the NPC.

The Party: although it is not granted any formal legal status or powers in the Constitution and is technically separate from the government, the Chinese Communist Party (Party) parallels, overlaps with and controls the government at all levels. This system helps the Party to ensure a high degree of national uniformity and cohesion, but it also sets the Party above the government which can make it difficult in practice to subject the Party itself and its individual members to legal constraints.

Executive/administrative function: the State Council of the PRC (State Council) is the highest level of state executive administration and has the power to enact administrative rules and regulations consistent with law. Ministries and commissions under the State Council are also vested with the power to issue orders, directives and regulations within their respective areas of competence. The State Council also submits legislative proposals to the NPC or its Standing Committee for enactment into law.

Foreign investment is approved by the Ministry of Commerce (MOFCOM) and the National Development and Reform Commission (NDRC). The State Administration of Industry and Commerce (SAIC or local AIC) is also important, as it is responsible for business registration and also a number of business oversight functions.

Judicial function: the judicial power to apply the law in civil and criminal matters is vested in the people's courts at various levels – from the central Supreme People's Court (SPC), provincial High People's Court, municipal Intermediate People's Courts and local Basic People's Courts. People's courts at different levels are not independent, but carry out the judicial function in fairly close coordination with the courts, government and Party at the same and higher levels.

In the PRC's civil law system, court cases do not act as binding precedents. However, many court opinions are published annually and may provide useful guidance for outcomes in similar cases. SPC decisions also provide non-binding judicial guidance for lower courts, and the SPC's detailed interpretations on the application of national laws are considered to have the force of law.

Localities: the Party-controlled central legislative/executive/judicial structure is repeated at lower levels. The people's congresses of provinces and their municipalities may enact local rules and regulations. Administrative bodies at those sub national levels, such as local offices of the central state ministries and administrations, enforce local and central enactments and may make administrative rules and directives applicable to their respective administrative areas. People's courts at lower levels look to courts at higher levels and to government and Party at the same and higher levels for guidance.

All this means that it is almost impossible for the individual (natural or legal) person to succeed in challenging through legal means a state or regional decision based on policy considerations (rather than overt corruption which currently the Party is rather keen on stamping out).