BEIJING: China has taken a decisive step toward bolstering its private sector by starting to draft a law on promoting the private economy, marking the latest step in boosting business confidence and revitalizing the growth of the world’s second-largest economy, analysts said.
They said that this legislative effort will not only improve the overall business environment but also address the pressing concerns of private enterprises, providing practical solutions to the challenges they face.
While the forthcoming law signals a promising shift toward a more favorable legal framework for the private sector, analysts emphasize the need for continued efforts to address persistent challenges, including financing difficulties and higher business costs.
Their comments came as the Ministry of Justice, the National Development and Reform Commission, and the Legislative Affairs Commission of the Standing Committee of the National People’s Congress jointly hosted a legislative work symposium on Wednesday, at which it was said that work has started on drafting the law to support the development of the private sector, and the legislative process will be accelerated.
“By initiating the drafting of the private sector promotion law, China aims to foster a more favorable environment for the development of private enterprises while providing robust legal safeguards for their healthy growth,” said Bai Wenxi, vice-chairman of the China Enterprise Capital Union.
According to China Central Television, the symposium said the key focus will be placed on protecting private companies’ property rights and the rights and interests of entrepreneurs in accordance with the law, ensuring their participation in market competition on a level playing field, equal access to factors of production, and the settlement of outstanding payments owed to small and medium-sized enterprises.
“This reflects the government’s strong dedication to nurturing the private economy, with a specific emphasis on addressing the fundamental concerns of private enterprises,” said Hong Yong, an associate research fellow at the Chinese Academy of International Trade and Economic Cooperation’s e-commerce research institute.
“It signals a significant step toward creating a more transparent, stable and predictable business environment that ensures fair competition. These legislative measures will not only remove systemic barriers but also invigorate business dynamism and foster the advancement of new productive forces.”
Hong said the private sector serves as a primary engine for economic growth, creating abundant job opportunities and substantially contributing to China’s GDP. –The Daily Mail-China Daily news exchange item
