Workers check aluminum alloy components at a company in Binzhou, east China’s Shandong Province, Feb. 26, 2025. Binzhou City is a major hub for private enterprises. In recent years, the city has fostered the development of private economy through comprehensive and end-to-end services. (Photo: Xinhua)
Chinese officials on Thursday introduced various measures to implement the country’s first fundamental law dedicated to promoting the private sector, which will take effect on May 20 after being passed at a session of the Standing Committee of the National People’s Congress on April 30.
The formulation and enactment of the Private Sector Promotion Law will institutionalize the guiding principles and policies of the Chinese government regarding the private economy, as well as codify effective practices and proven experiences from practical implementation, said Wang Zhenjiang, a vice minister of justice, at a conference.
This legal framework aims to consolidate reform achievements, foster a rule-of-law-based environment and social ecosystem conducive to the coordinated development of diverse ownership economies, including private enterprises, and continuously reinforce China’s economic stabilization and recovery momentum while consolidating the foundation for sustained long-term growth, Wang said.
The implementation of the law will further stabilize the expectations, consolidate confidence and promote high-quality development, said Zheng Bei, a deputy head of the National Development and Reform Commission (NDRC), China’s economic planner, at the press conference.
Zheng noted that the law strengthens development certainty through legal stability, serving as a reassurance anchor for private enterprises to focus on growth. Moreover, it actively addresses the concerns of private businesses through deliberate institutional arrangements. The law embodies the principles of equal treatment, fair competition, equal protection and common development, which are fully reflected not only in the general provisions but also in chapters addressing fair competition, investment and financing facilitation, technological innovation and legal liabilities, Zheng said.
Regarding fair market competition, the law stipulates a nationally unified market access negative list system. In terms of equal access to production factors, it mandates state guarantees for private entities to utilize capital, technology, human resources, data, land and public service resources on par with other market players, according to Zheng.
Zheng said that the NDRC is accelerating the improvement of long-term mechanisms for private enterprises to participate in major project construction. She noted that the NDRC will introduce premium projects totaling approximately 3 trillion yuan ($415.20 billion) in key sectors, including transportation, energy, water conservancy, new infrastructure and urban infrastructure.
The NDRC has already launched several significant projects in nuclear power, railways and other sectors, with private capital holding up to 20 percent equity participation in certain projects. Additionally, over 80 percent of funds in the industrial equipment upgrading and recycling sectors are allocated to support private enterprises.
Cong Lin, a vice minister of National Financial Regulatory Administration (NFRA), stated that the NFRA is conducting equity investment pilot programs through financial asset investment companies to support technology innovation enterprises, having established 74 private equity investment funds thus far. Additionally, merger and acquisition loan services tailored for tech enterprises have been rolled out in 18 pilot cities, facilitating smoother capital circulation for technology companies.
Global Times
