China moves to elevate and protect its private sector with new draft law
Newly proposed legislation is intended to address lingering concerns among private firms while creating a fair and predictable business environment
Beijing on Thursday released the draft of a widely watched law concerning the promotion of the private sector – the latest step on the road to reviving business confidence that has been consistently hammered by policy uncertainties and a post-Covid economic slowdown.
The private-economy promotion legislation would mark a “systemic approach” to address the sector’s problems and challenges, while helping create a stable, fair, transparent and predictable business environment, the National Development and Reform Commission (NDRC) and the Ministry of Justice said in an online statement.
“The private economy is an important part of the socialist market economy and an important force for China’s modernisation,” said the draft, published on the NDRC’s website to solicit public opinions until November 8.
The 77-article draft has stipulated measures to promote fair market competition; enhance the investment and financing environment; encourage their involvement in scientific projects and technological innovation; and also safeguard their economic rights and interests.
“We must guide a social environment that respects work, innovation and entrepreneurs,” it said.
Particularly, the draft law tries to address the concerns of private entrepreneurs, including protections of private property and personal rights, as well as restrictions on criminal investigations.
