This chapter discusses the relationship between trust parties in law. The discussion centres on the new legal framework that legislators have created for the governance of Chinese charitable trusts. It focuses on two main aspects: (a) the assignment of powers and duties to settlors and trustees; and (b) the undetermined legal nature of beneficiaries. This chapter delves into these two important aspects of governance by examining the relevant legislative provisions. Such an examination helps, first, to identify the ways in which the new charity law has helped shape the governance structure of Chinese charitable trusts; and second, to identify areas where the legal governance framework provides clear guidelines and where it is vague, has gaps, or creates risks for parties in terms of the lawful performance of their roles.

The heavy reliance on coal for energy contributes to both air pollutants and CO2 emissions in China. As air pollution control becomes one of the top government priorities in recent years, many measures to tackle air pollution, such as curbing coal consumption, increasing energy efficiency, and encouraging renewable energy investments, can simultaneously reduce carbon emissions. However, air pollution abatement measures are not always aligned with carbon mitigation goals. For instance, installing sulfur scrubbers on coal power plants can significantly reduce air pollutant emissions, but does not mitigate carbon emissions. Given the political saliency of air pollution concerns, it is critical for policymakers to understand the potential synergies and trade-offs between these two objectives: improving air quality and protecting human health in the near term, and achieving deep decarbonization to tackle climate change in the long term.