The system of people's congress is China's fundamental political system. The National People's Congress (NPC) is comprised of representatives elected from the provinces, autonomous regions and municipalities directly under the Central Government and representatives elected by the armed forces. The NPC is the organizational arm of the state power in China. It rules on the vital daily issues in the country's political life.

The NPC exercises the following functions and powers: to amend the Constitution; to supervise the enforcement of the Constitution; to enact and amend basic laws governing criminal offences, civil affairs, state organs and other matters; to elect the President and the Vice President of the People's Republic of China; to decide on the choice of the Premier of the State Council upon nomination by the President and on the choice of the Vice Premiers, State Councilors, Ministers in charge of ministries or commissions, the Auditor-General and the Secretary-general of the State Council upon nomination by the Premier; to elect the Chairman of the Central Military commission and, upon nomination by the Chairman, to decide on the choice of all other members of the Central Military Commission; to elect the President of the Supreme People's Court; to elect the Procurator-General of the Supreme People's Procuratorate; to examine and approve the plan for national economic and social development and report on its implementation;  to examine and approve the state budget and report on its implementation; to alter or annul inappropriate decisions of the Standing Committee of the NPC; to approve the establishment of provinces, autonomous regions, and municipalities directly under the Central Government; to decide on the establishment of special administrative regions and the systems to be instituted there; to decide on questions of war and peace; and to exercise other such functions and powers the highest organ of state power should exercise.

The NPC is elected for a term of five years. It meets in session once a year and is convened by its Standing Committee. When the NPC is in closing session, its Standing Committee can execute the state power in behalf of the NPC. The Standing Committee of the NPC is composed of a Chairman, Vice Chairmen, the Secretary-general and members.

The legislation in China includes legislation passed through the NPC and its Standing Committee, State Council and its Departments, the local government, autonomous regions, special economic zone, and special administrative region.