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On July 6, 2012, the National Copyright Administration of China released the 2nd Draft of the 3rd Revision of the copyright law, in which 81 provisions were changed from the 1st Draft. It does contain a few improvements, but it contains more compromises and even steps backward under the pressure of interest groups. It is unfortunate that China, the largest country by both population and Internet users, despite its fast-growing economy, seems missing the opportunities to craft a 21st-Century Copyright Law, but instead follows the old path of “the more the better” (more copyright protection and enforcement, the better economic growth and social development), “one size fits all” and “modeling on US law” (on draconic enforcement rather than general and robust limitations and exceptions). This paper looks into the inner design of the 2nd Draft and analyzes both its improvements and setbacks.