By Special Correspondent

China enacted the Private Sector Promotion Law in 2025 to strengthen legal protection for private enterprises and promote the sustained and healthy development of the private economy, according to a report presented at the national legislative session in Beijing.

The report on the work of the Standing Committee of the National People’s Congress states that the law was introduced to implement major principles, policies and initiatives aimed at further developing the private sector and improving the legal environment for businesses.

According to the report, the Private Sector Promotion Law establishes key principles including impartial treatment, fair competition, equal protection and shared development for enterprises operating in the Chinese market.

The legislation sets out rules governing market access, the availability of production factors, business regulation and the protection of the lawful rights and interests of private enterprises. The report notes that the law provides the legal safeguards necessary for the sustained, healthy and high-quality development of the private sector.

The report states that the law also outlines institutional arrangements aimed at improving the business environment and ensuring equal treatment of enterprises in market competition.

China has continued strengthening legislation in the economic field to support reform and development through high-quality laws, the report notes.

Lawmakers revised the Unfair Competition Law and the Civil Aviation Law and deliberated draft revisions to several major economic laws, including the Enterprise Bankruptcy Law, the Banking Regulation Law, the Trademark Law and the Certified Public Accountants Law.

According to the report, these legislative efforts aim to support the development of a credit-based economy governed by law and facilitate the establishment of a unified national market.

The report states that lawmakers also advanced legislation related to agriculture and resource management. The Fisheries Law was revised, and a draft law on the protection and quality improvement of cultivated land was deliberated to strengthen the system for preserving cultivated land resources.

In addition, China revised the Maritime Law, the Arbitration Law and the Foreign Trade Law to better reflect the country’s development needs and further align domestic legislation with established international rules.

The report also notes that the National People’s Congress made a decision to authorize the State Council to temporarily adjust the application of certain provisions of the Seed Law in the China (Xinjiang) Pilot Free Trade Zone.

According to the report, these legislative efforts form part of broader work to strengthen the legal foundations of economic governance and support reform and development through improved legal institutions.

The report states that China will continue strengthening legislation in key areas of economic governance to support the country’s development goals and modernization process.

Credit: INP-WealthPk