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A characteristic of the socialist law tradition is the existence of people's courts. The most important example of this today is in the People's Republic of China, where there are four levels of courts: (1) the Supreme People's Court, (2) the High People's Courts, (3) the Intermediate People's Courts, and (4) the Basic Level People's Courts. The Supreme People's Court is responsible for interpretation of laws, administration of the judiciary, and adjudication; it also participates in certain legislative activities. Internally, the state divides Chinese courts into substantive divisions such as civil, criminal, and administrative; case filing and adjudicative supervision divisions; and administrative divisions. There are also various Chinese Communist Party (CCP) organs within the court, including the Party Group (dangzu), the Party Institutional Unit (jiguan danwei), and Party cells (dangzhibu).

Article 126 of the Chinese Constitution provides that the courts shall “in accordance with law, exercise judicial power independently and are not subject to interference by administrative organs, public organizations or individuals.” In China's unitary system, however, the courts are administratively and institutionally accountable to the corresponding level people's congresses that created them. In addition, courts are subject to the dual leadership system, similar to any other entity. Thus, courts are subject to the Party Committee and other Party organizations at the same level, as well as to supervision by higher-level courts. The procuracy also exercises supervision over the judiciary. Governments finance courts at their own level, which undermines the courts' independence: the courts are beholden to government.

Moreover, while the court as a whole is supposed to enjoy functional independence in handling cases, individual judges generally do not have the right to decide cases on their own. A collegiate panel of three judges hears most cases. In addition, there is an adjudicative committee, consisting of the president of the court, vice presidents, department chiefs, and senior judges. Its main task is to ensure quality control by deciding major or complicated cases and supervising the collegiate panels that decide other cases.

In practice, the Party primarily exerts influence in the areas of ideology, policy, and personnel matters. Party organs might become directly involved in individual cases, particularly in cases that are politically sensitive, have a significant impact on the local economy, or involve conflicts between the courts and the procuracy or government. However, the Party's only interest in the outcome of most cases, whether commercial, criminal, or administrative, is that the parties and the public perceive the result as fair. Accordingly, the CCP only rarely interferes in the handling of specific cases; when it does, at least in commercial cases, it usually does so to ensure that the result accords with law. Interference by local government officials is much more prevalent than Party interference.

The judiciary also suffers from various technical shortcomings and lacks adequate power and authority within China's current constitutional structure. As in some civil law countries, the courts are supposed to apply the law rather than make it or even interpret it. In addition, the state does not allow the courts to conduct judicial review or strike down government regulations that are inconsistent with higher legislation.

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