The reconstruction of the Chinese legal system, beginning in the late 1970s, came along with the launch of the reformation and the “open door” policy. Since then, even though China’s economic development has attracted all the attention, the development of the legal system has fallen into an unbalanced situation. This unbalanced situation resulted from the constraints imposed by existing planned economy and was influenced by the idea of public ownership. Compared with state enterprises that were favored by the law, nonstate-owned enterprises in China were unfairly treated and had difficulty entering the market. Having adopted the gradualist approach of “making one law after the prior one has matured,” together with using vague and over-broad language, the legal system has lagged behind the need to accommodating economic reform. The law has focused on regulation and granted the administration a superintending power. Accompanying with the gradual liberalization of economy was the tightening of political and legal control. That has made the contents of the law highly regulatory. Though attracting foreign investments has been regarded as the locomotive of economic development, the differentiated treatment of domestic and foreign entities has caused injustice. In contrast to the burgeoning economy, the courts are trapped with a large amount of low quality judges and discontinuity between legal practice and legal education. Those factors have caused barriers to the application and enforcement of law as well as brought ridicule and distrust to law.