China's first law on promoting the private economy, which officially took effect on Tuesday, serves as a game-changer for tech innovators, especially in cutting-edge fields such as humanoid robots and new energy, according to some industry leaders in the country's innovation hub Shenzhen.
The Private Sector Promotion Law, passed in late April, aims to optimize the development of the private sector, ensure fair market competition, and promote the growth of both the private economy and private entrepreneurs.
It clearly states that the private sector is "an important part of the socialist market economy," and promoting its sustained, healthy and high-quality development is a significant and long-term policy.
Some entrepreneurs in Shenzhen in south China's Guangdong Province said that this legislation will unlock the innovation potential of newly-rising companies, especially small and medium sized enterprises (SMEs), and reinforce the confidence of investors in the private economy.
"The private economy law's key emphasis is 'entry unless prohibited,' enabling robotics and emerging industries to explore broader scenarios for industrial use. It also encourages SMEs to join major national projects, aligning with the view that enterprises drive tech innovation, which has now been legally affirmed. This boosts our confidence in investing in new technology's industrial applications," said Leng Xiaokun, founder and chairman of Leju Robotics.
From ensuring fair market access and financing support to enhancing services and the protection of original innovation, the 78-article law cements efforts to support the growth of the private sector.
Yao Yao, vice general manager of Lead Intelligent Equipment, said that the law highlights legal safeguards and focuses on core tech breakthroughs, helping private firms expand into new markets.
"The law supports state-owned enterprises in tackling national tech challenges, and accelerates our R and D and commercialization. It also bans administrative abuse in economic disputes and standardizes cross-regional enforcement, reducing business uncertainties and safeguarding innovative firms like us. The law sets equal access standards for non-negative list areas, aiding our expansion into emerging markets," he said.
Zhang Chensheng, the securities affairs representative of Shenzhen Senior Technology Material, said the law, which ensures a more level playing field and enables fairer market competition, bolsters confidence in private companies' long-term growth.
"In the current international environment, competitive private firms like us need more legal protection. The new law ensures fairer market access, offers equitable treatment and more growth opportunities. It allows us to work with new businesses and government projects related to new energy and energy storage," he said.
This legislation marks a milestone in the development of the Chinese private sector, which contributes more than 60 percent of the country's GDP.
Private firms make up more than 90 percent of the country's businesses and employ more than 80 percent of urban workers. They have also become key players in China's push for innovation-driven growth, contributing to more than 70 percent of the country's technological innovation achievements.
China's landmark private sector promotion law sends strong signals to tech innovators: industry leaders
China's landmark private sector promotion law sends strong signals to tech innovators: industry leaders
China's landmark private sector promotion law sends strong signals to tech innovators: industry leaders
