On Wednesday, China's national lawmakers voted to adopt the country's first fundamental law focusing specifically on promoting the private economy. This marks a significant step in revitalising a key growth sector and greatly boosting entrepreneurs' confidence and expectations.
According to experts and company executives, the move sends a strong signal that China is committed to supporting the healthy and high-quality development of the private sector through legislation, with the aim of creating a fairer, more dynamic business environment and addressing the pressing concerns of private enterprises.
After more than a year in the legislative process, the Private Sector Promotion Law was passed at a session of the Standing Committee of the National People's Congress, the country's top legislature, and will take effect on 20 May.
Comprising 78 articles in nine chapters, the law covers areas such as fair competition, investment and financing promotion, scientific and technological innovation, regulatory guidance, service support, protection of rights and interests, and legal liabilities.
Notably, the law explicitly outlines the legal status of the private economy for the first time, stipulating that promoting its sustained, healthy and high-quality development is a significant long-term policy of China.
It explicitly outlines the legal status of the private economy for the first time, clearly stipulating that promoting its sustained, healthy and high-quality development is a significant long-term Chinese policy.
The NPC Standing Committee's Legislative Affairs Commission stated that the private sector plays a pivotal role in driving the country's economic development, fostering innovation, creating jobs, and improving people's well-being. The commission stressed the necessity of promulgating the law.
"The introduction of the law is a milestone that demonstrates the country's commitment to the private sector," said Hong Yong, an associate research fellow at the Chinese Academy of International Trade and Economic Cooperation.
'The law consolidates the vital position of the private sector in China's socialist market economy and provides private enterprises and entrepreneurs with stable expectations
According to experts and company executives, the move sends a strong signal that China is committed to supporting the healthy and high-quality development of the private sector through legislation, with the aim of creating a fairer, more dynamic business environment and addressing the pressing concerns of private enterprises.
After more than a year in the legislative process, the Private Sector Promotion Law was passed at a session of the Standing Committee of the National People's Congress, the country's top legislature, and will take effect on 20 May.
Comprising 78 articles in nine chapters, the law covers areas such as fair competition, investment and financing promotion, scientific and technological innovation, regulatory guidance, service support, protection of rights and interests, and legal liabilities.
Notably, the law explicitly outlines the legal status of the private economy for the first time, stipulating that promoting its sustained, healthy and high-quality development is a significant long-term policy of China.
It explicitly outlines the legal status of the private economy for the first time, clearly stipulating that promoting its sustained, healthy and high-quality development is a significant long-term Chinese policy.
As an indispensable force in China's economic and social development, the private economy plays a vital role that should not be underestimated. It is a major source of employment, a key driver of technological innovation and a critical pillar in ensuring the stability of industrial and supply chains.
Liu pointed out that the private sector still faces challenges, including difficulties accessing finance and barriers to market access. He said that the authorities should focus on deepening financial system reforms to broaden financing channels for private enterprises and reduce their tax and fee burden.
Qi Xiangdong, chairman of the Chinese cybersecurity company Qi-Anxin Technology Group, said that he was inspired by the passing of the law to promote the private economy and expressed strong confidence in its future growth.
'As we are a technology enterprise with significant R&D investment, this law has boosted our confidence, enabling us to focus on technological innovation and play a leading role in industrial upgrades and international competition,' he said.
He added that the law focuses on solving the practical difficulties and issues faced by private enterprises by improving investment and financing, as well as fostering technological innovation. He believes that its implementation will alleviate the cash flow pressures faced by enterprises and accelerate the industrial application of technologies.
