【正确答案】Judicial interpretation refers to the interpretations, made by the Supreme People’s Court, relating to specifi c issues of application of law in the judicial practices under the authorisation of the Standing Committee of the National People’s Congress.

【正确答案】Judicial interpretation can take one of the two forms: those judicial interpretations made by the Supreme Court to a specific case based on the request brought by a relevant local court, and those judicial interpretations given to provide a general guidance of the application of law in relation to certain matters to all of the local courts.

【正确答案】Since the local courts always follow the responses given to a specifi c case or the rules as set up in judicial interpretation made by the Supreme Court, in relation to the application of laws, judicial interpretations have an actual legal binding force upon local courts at various levels.

【正确答案】In the Chinese legal system the power of legislation is vested on the National People’s Congress (NPC) and its Standing Committee. However, because of various reasons, it is helpful for the Supreme Court to make judicial interpretations on specifi c matters with respect of application of law in handling specifi c cases. First, the legislation by the NPC and its Standing Committee is failing to keep pace with the fast development of national economy. Secondly, China adopts a two-instance hearing system which means that most of the cases will be closed at intermediate courts or high court in different provincial areas. In order to achieve a nation-wide unitary judicial judgement, it is necessary for the Supreme Court to give guidance to local courts relating to the application of laws.