Title: Building a Legal Shield for High-Quality Development of the Private Economy — Written on the First Anniversary of the Implementation of the Private Economy Promotion Law
The private economy is a vital force in advancing Chinese-style modernization.
General Secretary Xi Jinping has pointed out that “the new era and new journey offer broad prospects and great potential for the development of the private economy” and that “policies to promote the development of the private economy must be implemented solidly.”
On May 20, 2025, the Private Economy Promotion Law came into effect. This is China’s first fundamental law specifically dedicated to the development of the private economy, covering fair competition, technological innovation, service guarantees, and rights protection, thereby laying a solid legal foundation for the sustained, healthy, and high-quality development of the private economy.
Over the past year, in accordance with the decisions and deployments of the Party Central Committee, various regions and departments have worked to ensure the implementation of the Private Economy Promotion Law, safeguarding the healthy development of the private economy and the growth of private entrepreneurs. The confidence, foundation, and momentum for private economic development have become stronger, and the prospects broader.
Guarding High-Quality Development of the Private Economy
In Anhui, Fan Guozhou, head of Tongling Shangmei New Materials Packaging Co., Ltd., recently faced difficulties in raising funds.
Local rural commercial banks and tax authorities proactively offered door-to-door services. “After learning that we have an A-level tax credit rating and are on the government’s ‘whitelist’ for financing credit issued to banks, they immediately recommended a specialized credit product, solving the company’s urgent needs,” Fan said.
“Providing convenient financing conditions for creditworthy private economic organizations” is a clear provision of the Private Economy Promotion Law.
The stability of the rule of law enhances the certainty of development. Over the past year, the implementation of the Private Economy Promotion Law has effectively ensured high-quality development of the private economy, with results continuously emerging:
Ensuring fair competition. The construction of a unified national market has been deepened, with the release of a new version of the negative list for market access, reducing the number of items from 117 to 106. A campaign to clean up and rectify market access barriers has been carried out, identifying 15 categories of key areas for action.
Improving the investment and financing environment. Several measures have been issued to further promote private investment, including setting up a 1 trillion yuan relending facility for private enterprises, implementing loan interest subsidy policies for small and micro enterprises, a special guarantee plan for private investment, and a bond risk-sharing mechanism for private enterprises.
Supporting technological innovation. The “Artificial Intelligence+” action has been deeply implemented, with continuous issuance of “AI coupons” in the computing power sector to subsidize enterprises’ use of computing services, and support for private enterprises to actively participate in projects such as application pilot bases.
Strengthening assistance to enterprises. A comprehensive evaluation system for enterprise credit status has been established, the credit repair system has been further improved, and the construction and application of a national credit information sharing platform for small and micro enterprises’ cash flow have been strengthened. By the end of 2025, China had supported small and micro enterprises in obtaining financing totaling 2.3 trillion yuan.
The rule of law is the best business environment. In response to difficulties and challenges in development, the Private Economy Promotion Law provides guarantees for protecting the legitimate rights and interests of private enterprises.
A judgment requiring a government department to pay over 8 million yuan in compensation to an enterprise was issued! On May 30, 2025, shortly after the Private Economy Promotion Law came into effect, the Supreme People’s Court’s Administrative Division applied the law for the first time in a judgment, protecting the legitimate rights and interests of private enterprises equally in accordance with the law.
Over the past year, many fair trials of enterprise-related cases vividly illustrate the state’s encouragement, support, and guidance for the development of the private economy in accordance with the law.
“The Private Economy Promotion Law is a ‘talisman’ for private enterprises and entrepreneurs,” said Wang Liming, Vice President of the China Law Society. “Over the past year, the law has focused on the pain points, difficulties, and bottlenecks encountered in private economic development, responding to the most prominent demands and urgent expectations of private enterprises, allowing them to truly feel at ease and focus on development.”
Enhancing the Internal Driving Force for Private Enterprise Development
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