The proposed property law is the most controversial measure to come before parliament in recent years. Earlier versions prompted an outcry by leftists, who complained it would undermine state control of the economy and worsen the growing gap between an elite who have profited from China’s reforms and the poor majority.

The controversial bill has already sparked public debate on whether the law represents a serious departure from Communist values or a realistic modern view of the nation's economic position. The legislation has been in revision since its introduction in 2002 and has had more reviews than any other in the NPC's history. A review of its sixth version was completed in October. In March 2004 the NPC officially enshrined private property protection in the Chinese constitution by approving an amendment declaring "legal private property is not to be encroached upon." The NPC Sunday also considered legislation that would equalize tax rates paid by Chinese and foreign companies, many of which get tax breaks that some say hurt domestic entrepreneurs.

It said that when various tax breaks are taken into account, the average Chinese company pays taxes at a 24 percent rate, while foreign companies pay 14 percent.