This article highlights four features of the new Civil Code of China and
its enactment history to explain the significance of this long-expected
Code.

Overall, the innovative and forward-looking features of the new Code
can help China better prepare for the future. In particular, the Code adds
the right of habitation as a new and powerful proprietary right which
enables the elderly and other weaker claimants to live in real property of
others. This new right fulfills housing needs, addresses the aging problem,
and gives strong protection that was previously unavailable. The Code
makes another fundamental change through allowing mortgaged property
transfers. This new rule increases property flow, helps mortgagors pay off
debts, and protects all claimants involved in mortgages more evenly.

The Code also introduces a new defense to clarify tort liability where
injured claimants voluntarily undertake risks in sports. This encourages
exercise and is more necessary during the COVID-19 pandemic. All courts
can now apply this clear defense to abandon the previous practice which
resulted in uncertainty. Further, the Civil Code is a green code. The Code
fills the lacuna of ecological protection, imposes punitive sanctions as an
exceptional measure, and improves the protection of both the environment
and ecosystems significantly. It prevents damage more effectively and
advances the green policy of the supreme power in China.

The Code, which is enacted by China’s supreme legislature, took effect
recently and is now the most authoritative statute in civil law matters, but
currently there is very little literature or caselaw. This article is timely as
it seeks to clearly explain the new provisions.