This article examines the significance of the Legislation Law (lifa fa), passed by the National People's Congress (NPC) in March 2000. The Legislation Law represents an attempt by the NPC to rationalize China's legal system, establish a uniform legislative hierarchy and consolidate its authority over other important lawmaking institutions. The politics behind the Law's development therefore offer insight into the balance of power in China's lawmaking arena, revealing how key institutions – the NPC, the State Council and local people's congresses – engaged in bureaucratic bargaining over fundamental questions of their existence and authority within an evolving system. While the promulgated Law reveals the mixed results of this complex process, it also makes possible a more open and consultative legislative process by sanctioning the emergence of public legislative hearings. Now gaining currency around China, hearings are a new development and could be an important step in institutionalizing more meaningful citizen participation in the legislative process.