Article: Private Autonomy and State Policies: The Hybrid Nature of Chinese Trusts

The evolution of trust law in China reflects a distinctive fusion of private law principles and statedriven policy objectives. Unlike common law jurisdictions, where trusts are rooted in private autonomy, Chinese trusts have been shaped to serve broader state goals, particularly in the realms of economic development and public welfare. The enactment of the Chinese Trust Law in 2001 and the introduction of charitable trusts in 2016 exemplify this policy-driven approach, aligning trust practices with the imperatives of macroeconomic stability and social welfare. This article explores the hybrid nature of Chinese trusts, analysing how public law norms frequently take precedence over private law principles, thereby creating systemic tensions and distortions within the trust regime. By examining the evolution of collective investment trusts and charitable trusts – two main types of trusts in China – this study highlights the challenges of balancing state control with private autonomy, given China’s unique social, economic, and political circumstances. The article concludes by advocating for reforms aimed at restoring the trust’s foundational role as an autonomous and self-contained legal institution. It recommends that Chinese legislators adopt a proactive approach to refining the trust statute and establishing coherent private law rules to govern the rights and duties of the parties to a trust.