The Rule of Law in China’s Economic Rise: Evolution and Logic of Commercial Law under Socialist Principles

Abstract

Starting from the interaction between the commercial law framework and economic development, this article systematically explores the construction logic and practical trajectory of the Chinese-featured commercial law system. By comparing theoretical differences between common law and civil law systems, it reveals the diversity of characteristics that constitute an “optimal” commercial law system. On this basis, the intrinsic logic and specific implementation of key principles such as “property neutrality,” “separation of government and enterprises,” and the protection of private and intellectual property rights under the socialist legal framework are explored in depth. Subsequently, within the socialist framework, it is necessary to analyze the synergy among Party leadership, government oversight, and market vitality—integrating market rules with rule-of-law thinking—through institutional innovations such as mixed-ownership reform and the “pre-establishment national treatment and negative list for foreign investment.” The research demonstrates that China’s commercial law system is not a simple transplantation of the Western model, but rather a gradual “crossing the river by feeling the stones” reform. It “functionalizes” classic elements of the Western market economy to serve national development strategy, providing a significant case for understanding the diversified reconstruction of relations between law and economy in modern states.