China has taken a historic step to strengthen its private sector with the passage of its first national law dedicated to supporting and protecting private enterprises. Approved by the Standing Committee of the National People's Congress, the Private Sector Promotion Law will come into effect on May 20, 2025, and marks a major milestone in the evolution of China's economic blueprint.
Amid global economic uncertainty and trade tensions, experts say the timing could not be better. The 78-article law establishes a statutory guarantee for fair market access, streamlined financing support, and enhanced protection for innovation. These measures target the heart of private firms' challenges—from discriminatory enforcement to financing barriers—by prohibiting the abuse of administrative or criminal measures and standardizing cross-jurisdictional law enforcement.
A Confidence Boost for Growth
Private enterprises have been central to China's reform and opening-up era, driving employment, consumption, and innovation. "Elevating protections to a legal level sends a powerful message," says Li Hongjuan, deputy director of the Private Economy Office at the Economic System and Management Research Institute of the National Development and Reform Commission. "This law directly addresses our most urgent demands."
What's Ahead?
- Fair Market Access: Safeguards against unfair treatment in licensing and procurement.
- Financing Support: Clear rules to ease access to loans and investment.
- Innovation Protection: Stronger rights for R&D and intellectual property.
As China rolls out this landmark legislation, entrepreneurs and global investors will be watching closely. For young innovators, business leaders, and changemakers, the law offers fresh opportunities to build, innovate, and grow in one of the world's largest markets.
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'Right on time': Experts welcome China's landmark private sector law
cgtn.com
