The people's congress system is China's fundamental political system. The Constitution of the PRC provides that state power belongs to the people. The NPC and local people's congresses at all levels, formed through democratic elections, are organs representing the people in exercising state power.

The NPC is the highest organ of state power, with the First National People's Congress in 1954 marking the establishment of the system. A unicameral legislature, the NPC consists of deputies legally elected by 35 electoral units nationwide, which comprise 31 provinces, autonomous regions and municipalities, Hong Kong and Macao special administrative regions and the Chinese People's Liberation Army. Every minority ethnic group has an appropriate number of representatives in the NPC. The 10th NPC elected at the beginning of 2003 has a total of 2,985 deputies.

The NPC exercises the legislative power of the state, including amending and supervising the enforcement of the Constitution and enacting and amending basic laws and laws governing other matters. It also enjoys the power to elect, decide on and remove leaders and members of the highest state organs, oversee the government, and examine and decide on major state issues in line with the Constitution and other state laws. The administrative, judicial, procuratorial, military and other organs of the state are created by the organ of state power, and are therefore supervised by and responsible to it.

The NPC is elected for a term of five years. It meets in session annually, convened by its Standing Committee.

The NPC Standing Committee is the permanent body of the NPC. It exercises the highest state power when the NPC is not in session. Under the Constitution, no one on the NPC Standing Committee shall hold any post in any of the administrative, judicial or procuratorial organs of the state. The NPC Standing Committee is composed of chairperson, vice chairpersons, secretary general and members.