The draft law on private sector promotion presented to China's top legislature has undergone animated group deliberations,with lawmakers believing that it will significantly boost the confidence of the private sector.
As the country's first basic law focused on the development of the private sector, it marks a key step toward formalizing effective policies and reforms into legal protections and support.
Comprising nine chapters and 78 articles, the draft addresses key issues such as fair competition, investment and financing reforms, as well as intellectual property protection.
"We hope that the law will provide more private enterprises with a better business environment and greater opportunities for development. I think this draft has provided a directional initiative. But when it comes to implementing specific measures, we hope to see more detailed and comprehensive plans, such as for private enterprises to achieve truly fair competition with the state-owned enterprises and participate fairly in the international market environment," said Fu Zhiwei, a deputy to the 14th National People's Congress (NPC) and chairman of Xuzhou B and C Chemical.
Lawmakers have warmly welcomed the draft, believing that it will bolster confidence of the private sector, especially that of foreign investors in fair treatment and protection in China.
"I fully support the introduction of this bill to support the private enterprises. We all understand that private enterprise and businesses are very, very important to every economy. The introduction of this bill is to deliver very clear message and signal to all stakeholders, including the foreign enterprises. We have measure and we have mechanism in place to facilitate investment from foreign enterprises, make sure that they are treated equally, and also their right and things will be protected under this law," said Starry Lee Wai-king, a NPC deputy and a member of the Legislative Council of the Hong Kong Special Administrative Region.
As of September 2024, over 55 million private enterprises had been registered nationwide. According to official data, private enterprises accounted for over 92 percent of the county's businesses last year.
Experts say the draft law is of great and far-reaching significance for further optimizing the development of the private economy, accelerating and promoting a new development pattern.
China's draft law on private sector promotion to boost confidence of private sector
