Law Supporting Private Sector Amid U.S. Trade Tensions Set to Take Effect May 20.
On April 30, China passed its first comprehensive legislation aimed at bolstering the country's private sector economy. The 78-article Private Economy Promotion Law was passed following its third reading by the Standing Committee of the National People’s Congress, China’s top legislature. It will come into force on May 20.
As China’s first law focused on promoting the private sector, it stipulates measures to promote fair market competition, encourage the involvement of private firms in scientific and technological projects, and safeguard their economic rights and interests, according to state media reports. The full text of the legislation has yet to be published.
“China aims to better promote private economic development by introducing stronger support measures and ensuring fair law enforcement,”
said Huang Haihua, spokesperson for the Legislative Affairs Commission of the National People's Congress (NPC) Standing Committee, as quoted earlier by Xinhua News Agency.
Liu Min, deputy head of the National Development and Reform Commission's private economy development bureau, emphasized that the aim of the law, which was approved on Wednesday, is to enable economic entities with diverse ownership structures to compete on a level playing field.
The legislation reinforces China's adherence to the principles of equality, fair competition, equal protection and shared development to bolster the private sector's growth, Liu noted.
The commission will collaborate with other government bodies to implement the latest version of the national market access negative list, which has been streamlined from 117 to 106 items.
China will also intensify efforts to eliminate market access barriers and enhance support for private enterprises, including support in the areas of finance, talent and technology, the official added.
Sources: SCMP, China Daily
