China Releases Draft Legislation to Boost Private Sector
China is advancing towards its inaugural basic law dedicated to the development of the private sector, with a draft made available for public feedback on Thursday.
TroibNews 
China is progressing toward its first fundamental law specifically aimed at the development of the private sector, as a draft was made available for public feedback on Thursday.
The draft consists of 77 articles organized into nine chapters and emphasizes the equal treatment and protection of private sector businesses. Its creation is intended to foster a legal environment that supports the growth of all economic sectors, including the private sector, according to experts who spoke to the media.
Qi Xiangdong, vice-chairman of the All-China Federation of Industry and Commerce, noted to financial media outlet Cailian Press that a law-based market creates the optimal business environment, and he described the draft law as practical and effective.
He further indicated that the draft reflects the aspirations of private enterprises while clearly outlining the responsibilities of various governmental departments and local authorities.
The draft private sector promotion law encompasses provisions aimed at ensuring fair market participation and competition for private businesses, enhancing the investment and financing landscape for them, promoting their technological innovations, optimizing support services, and reinforcing the protection of their rights and interests.
Additionally, it includes measures designed to better regulate and guide enterprises, fostering the healthy development of private businesses and the prosperity of associated businesspeople, while safeguarding the legitimate rights and interests of their employees.
As specified in the draft, the state plans to implement a comprehensive negative list system for market access on a national scale. In sectors not listed in the negative list, all types of economic entities, including private firms, will have equal legal access.
Wang Yi, vice-president of Renmin University of China, remarked that significant emphasis is placed on supporting technological innovation within the draft law, which includes numerous practical measures.
The draft proposes that private enterprises be supported in investing and launching businesses in strategic emerging and future industries. It also encourages modernization and transformation of traditional sectors and participation in the investment and development of contemporary infrastructure.
Furthermore, it encourages private enterprises to engage in national scientific and technological research initiatives and supports capable private firms to spearhead major technological advancements, granting them access to essential national research infrastructure.
The draft explicitly calls for the establishment of a streamlined and effective communication mechanism between the government and enterprises.
In the development of laws, regulations, rules, and other normative documents—or judicial interpretations closely linked to market entities' business activities—input and recommendations from various economic entities, including private enterprises, along with industry associations and chambers of commerce, are deemed crucial, according to the draft.
The draft is available for public comment on the websites of the Ministry of Justice and the National Development and Reform Commission until November 8.
Sophie Wagner for TROIB News
The draft consists of 77 articles organized into nine chapters and emphasizes the equal treatment and protection of private sector businesses. Its creation is intended to foster a legal environment that supports the growth of all economic sectors, including the private sector, according to experts who spoke to the media.
Qi Xiangdong, vice-chairman of the All-China Federation of Industry and Commerce, noted to financial media outlet Cailian Press that a law-based market creates the optimal business environment, and he described the draft law as practical and effective.
He further indicated that the draft reflects the aspirations of private enterprises while clearly outlining the responsibilities of various governmental departments and local authorities.
The draft private sector promotion law encompasses provisions aimed at ensuring fair market participation and competition for private businesses, enhancing the investment and financing landscape for them, promoting their technological innovations, optimizing support services, and reinforcing the protection of their rights and interests.
Additionally, it includes measures designed to better regulate and guide enterprises, fostering the healthy development of private businesses and the prosperity of associated businesspeople, while safeguarding the legitimate rights and interests of their employees.
As specified in the draft, the state plans to implement a comprehensive negative list system for market access on a national scale. In sectors not listed in the negative list, all types of economic entities, including private firms, will have equal legal access.
Wang Yi, vice-president of Renmin University of China, remarked that significant emphasis is placed on supporting technological innovation within the draft law, which includes numerous practical measures.
The draft proposes that private enterprises be supported in investing and launching businesses in strategic emerging and future industries. It also encourages modernization and transformation of traditional sectors and participation in the investment and development of contemporary infrastructure.
Furthermore, it encourages private enterprises to engage in national scientific and technological research initiatives and supports capable private firms to spearhead major technological advancements, granting them access to essential national research infrastructure.
The draft explicitly calls for the establishment of a streamlined and effective communication mechanism between the government and enterprises.
In the development of laws, regulations, rules, and other normative documents—or judicial interpretations closely linked to market entities' business activities—input and recommendations from various economic entities, including private enterprises, along with industry associations and chambers of commerce, are deemed crucial, according to the draft.
The draft is available for public comment on the websites of the Ministry of Justice and the National Development and Reform Commission until November 8.
Sophie Wagner for TROIB News
