Public Feedback Sought on New Private Sector Promotion Law in China

The National People's Congress (NPC) of China has embarked on a vital step by seeking public input on seven draft laws, among which is a significant proposal focused on the enhancement of the private sector. This draft law was discussed during the latest session of the NPC Standing Committee, which lasted from Saturday to Wednesday. The ongoing public commentary period will last until January 23, 2025, and is aimed at refining the legislation that Xinhua News Agency describes as China's first comprehensive law dedicated to private sector development.

It is believed that this draft law will instill greater confidence among entrepreneurs. During deliberations, participants agreed that the law presents essential principles and policies fostering the growth of the private economy, particularly reflecting on the accomplishments of China's reform and opening-up era. Qi Xiangdong, a political advisor and entrepreneur, expressed optimism about the draft, pointing out that it aligns with the aspirations of private business owners and represents a significant development milestone.

Notably, this draft law enshrines several key principles relating to the private sector, such as promoting sustainable and high-quality growth as a long-term policy direction. Experts like Xu Hongcai highlight that unwavering support for the private economy is vital to fostering high-quality economic growth and innovation. The All-China Federation of Industry and Commerce reported that private enterprises play a crucial role in employment, comprising over 53 million businesses, thus further underscoring the importance of this legislative effort.

Additionally, the draft law emphasizes the necessity of creating a conducive business environment, emphasizing clear legal rights and liabilities for private businesses. This supportive legal environment is viewed as crucial for enhancing transparency and fairness in economic activities, further boosting the overall economy. The Central Economic Work Conference has also reinforced the urgency of implementing a private sector promotion law and tackling corruption to maintain a competitive market landscape.

Furthermore, the NPC Standing Committee has considered revisions to the Anti-Unfair Competition Law, which focuses on clarifying regulations to combat unfair practices while ensuring proper enforcement. Recent government initiatives, such as the launch of a comprehensive online services platform by the National Development and Reform Commission, reflect ongoing efforts to bolster the private sector, emphasizing the government's commitment to fostering a supportive economic framework.