The Standing Committee of the National People's Congress has the right to interpret laws. This right might be exercised when the provisions of a particular law require further clarification as to their specific meaning. Another example would be where new developments arising subsequent to a law being brought in give rise to a need for a clear definition of how the existing law is to be applied in the new circumstances.

The State Council, the Central Military Commission, the Supreme People's Court, the Supreme People's Procuratorate and NPC special committees may all request interpretations of the law. Requests may also come from the standing committees of the people's congress at provincial level.

A specialist executive arm studies and drafts interpretations of the law which are then scheduled to go forward to a meeting of the NPC Standing Committee for deliberation. Following this, the Law Committee will subject the draft to further discussion and amendment in light of the views of the Standing Committee members and then prepare a final draft ready to be put to the vote. The interpretation can then be promulgated by the NPC Standing Committee if it is approved by a majority of its members.

Interpretations of the law made by the NPC Standing Committee carry the same weight as the law itself and are equally binding.