China takes steps to enhance legal safeguards for private businesses
China is creating a more supportive atmosphere for private businesses by submitting a draft law on private sector promotion to the Standing Committee of the 14th National People's Congress (NPCSC) for review on December 21.
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China is working to improve the business climate for private enterprises by presenting a draft law on private sector promotion to the Standing Committee of the 14th National People's Congress for review on December 21.
This proposed legislation seeks to strengthen the legal framework supporting the development of the private sector in China. Experts suggest that this initiative will boost the confidence of private entrepreneurs and contribute to the nation’s broader economic growth.
“Elevating the measures to promote private enterprise development into legal norms is of profound significance for further optimizing the development environment for the private sector, accelerating the construction of a new development pattern, and promoting high-quality development," stated Wang Xiang, director of the Legislative Planning Office of the Legislative Affairs Commission of the NPCSC.
The Legislative Affairs Commission is responsible for drafting the legislative plans of the NPCSC.
In recent years, China's private sector has experienced significant growth. From 2012 to 2023, the proportion of private enterprises increased from 79.4 percent to 92.3 percent of the total number of enterprises, exceeding 53 million in count. During the same period, the number of individual businesses rose from over 40 million to 124 million, creating nearly 300 million job opportunities. Private enterprises have thus become a critical component of the Chinese economy.
This year's Central Economic Work Conference emphasized the necessity of advancing economic reforms by 2025 and rolling out significant reforms. The conference underscored the urgency of enhancing the deepening and upgrading of state-owned enterprise reforms and the enactment of the law on private enterprise promotion.
Bi Jiyao, a researcher at the Chinese Academy of Macroeconomic Research, stressed the importance of creating a more supportive environment for private enterprises and expanding their opportunities.
"This will further enhance the confidence of private entrepreneurs, stimulate their motivation organically, and enable them to play a more active role in stabilizing growth and employment,” Bi remarked.
He also highlighted the need to hold local governments accountable for addressing outstanding payments owed to private enterprises and to crack down on arbitrary charges, fines, inspections, and seizures, effectively safeguarding the legitimate rights and interests of private enterprises throughout China.
Sophie Wagner contributed to this report for TROIB News
This proposed legislation seeks to strengthen the legal framework supporting the development of the private sector in China. Experts suggest that this initiative will boost the confidence of private entrepreneurs and contribute to the nation’s broader economic growth.
“Elevating the measures to promote private enterprise development into legal norms is of profound significance for further optimizing the development environment for the private sector, accelerating the construction of a new development pattern, and promoting high-quality development," stated Wang Xiang, director of the Legislative Planning Office of the Legislative Affairs Commission of the NPCSC.
The Legislative Affairs Commission is responsible for drafting the legislative plans of the NPCSC.
In recent years, China's private sector has experienced significant growth. From 2012 to 2023, the proportion of private enterprises increased from 79.4 percent to 92.3 percent of the total number of enterprises, exceeding 53 million in count. During the same period, the number of individual businesses rose from over 40 million to 124 million, creating nearly 300 million job opportunities. Private enterprises have thus become a critical component of the Chinese economy.
This year's Central Economic Work Conference emphasized the necessity of advancing economic reforms by 2025 and rolling out significant reforms. The conference underscored the urgency of enhancing the deepening and upgrading of state-owned enterprise reforms and the enactment of the law on private enterprise promotion.
Bi Jiyao, a researcher at the Chinese Academy of Macroeconomic Research, stressed the importance of creating a more supportive environment for private enterprises and expanding their opportunities.
"This will further enhance the confidence of private entrepreneurs, stimulate their motivation organically, and enable them to play a more active role in stabilizing growth and employment,” Bi remarked.
He also highlighted the need to hold local governments accountable for addressing outstanding payments owed to private enterprises and to crack down on arbitrary charges, fines, inspections, and seizures, effectively safeguarding the legitimate rights and interests of private enterprises throughout China.
Sophie Wagner contributed to this report for TROIB News
