The P.R.C.\u27s Negotiable Instruments Law: An Instrument for Facilitating Private Economic Activity or Monetary Control?

This article discusses China’s market reforms, and how negotiable instruments have played an increasingly important role in China’s economy. The Negotiable Instruments Law, which came into effect January 1, 1996, consists of seven chapters, covering General Provisions, Drafts, Promissory Notes, Checks, Applicability of the Law to Foreign Negotiable Instruments, Legal Responsibilities, and Supplementary Provisions. This article illustrates that while the Negotiable Instruments Law constitutes a comprehensive financial statute; its scope is narrow in that it addresses negotiable instruments primarily in the context of banking transactions. This is especially apparent in the case of promissory notes that are regulated solely in their use as bank notes