On May 20, 2025, China officially turned a new page in economic governance when the Private Economy Promotion Law came into effect. More than four decades after the start of reform and opening-up, this legal framework cements the private sector’s role as a growth engine.
What began in the late 1970s with a handful of township enterprises and individual merchants has blossomed into a dynamic powerhouse. Today, China’s private economy accounts for over 50% of national tax revenues, 60% of GDP, 70% of technological innovation, 80% of urban employment, and 90% of business entities.
Entrepreneurs and startups across the Chinese mainland now have clear legal safeguards to boost competition, spark innovation, and attract both domestic and global investment. Scholars and changemakers see the law as a milestone that transforms policy promises into enforceable rights, providing a stable climate for business and new ventures.
For young professionals, tech enthusiasts, and digital nomads watching from around the world, these developments signal fresh opportunities. With formal protections in place, China’s private economy is poised to deepen its integration in global markets, drive sustainable growth, and shape the next decade of innovation.
As the world follows this unfolding story, the law’s impact will reveal itself in startup success stories, research breakthroughs, and cross-border partnerships—all testament to how policy can spark real-world change.
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From policy to legal rights: China's private economy ushers new era
cgtn.com
