Because of the trust’s advantages in investment, banking, financing and property management, China took the bold step of introducing the trust in 2001. However, as a product
of equitable jurisdiction, the trust seemed to be alien to Chinese law, and seemed particularly inconsistent with the Chinese property system. Therefore, China went down a tortuous
road upon its introduction of trusts before eventually promulgating the Trust Law of China in 2001. However, the Trust Law of China deliberately leaves open the fundamental
question of the introduction of dual ownership of trust property, which results in a number of limitations in the Chinese legislation. For instance, the ambiguous ownership of trust
property and the outstanding nature of the beneficiary’s rights all bedevil efforts to analyse Chinese trust law. In this paper, the author first investigates the history of trust in China
and Legal Reforms of Chinese Trust Business. Based on this analysis, the following section presents a detailed examination of the Trust Law of China and the limitations of the
Chinese trust system.