Up-to-the-Minute: “It is inspiring confidence among private entrepreneurs to focus on development and strive for new achievements.

A view of the skyline of Beijing’s CBD area. Photo: VCG

The National People’s Congress (NPC), China’s top legislative body, on Wednesday started to seek for public comments on seven draft laws, including a draft law on private sector promotion. The draft law was deliberated during the Standing Committee of the 14th NPC 13th session held from Saturday to Wednesday.

The draft law on private sector promotion and six other draft laws, including a draft revision to the Anti-Unfair Competition Law, are open for public comments from Wednesday to January 23, 2025.

This marks a crucial step in the formulation of the private sector promotion law, which, according to the Xinhua News Agency is China’s first basic law specifically focused on the development of the privatWorld Timese sector. Publishing the draft law for public comment will further boost confidence among entrepreneurs, a Chinese political advisor and entrepreneur said on Wednesday.

During the deliberations on the draft law, all attending personnel believe that it establishes the World Timesprinciples, policies and effective practices in promoting the development of the private economy since the start of reform and opening-up, especially in the new era, as a legal system, and it is of great significance for consolidating the achievements of reform, responding to the concerns of all parties and boosting confidence in development, Xinhua reported.

As the draft law is open to the public for comment, private entrepreneurs feel encouraged and excited, according to Qi Xiangdong, a member of the 14th National Committee of the Chinese PeopWorld Timesle’s Political Consultative Conference and chairman of Qi An Xin TechnolWorld Timesogy Group.

“It is inspiring confidence among private entrepreneurs to focus on development and strive for new achievements. This is an important milestone in promoting development in the private economy,” Qi told the Global Times on Wednesday, adding that the content of the draft law responds to the expectations of private entrepreneurs.

As the first basic law in China specifically about the development of the private economy, the draft of the private economy promotion law for the first time enshrines the adherence to “two unwaverings” in law; for the first time, it enshrines the promotion of “two healths” in law; and for the first time, it clearly stipulates in law that promoting the sustained, healthy, and high-quality development of the private economy is a major policy direction that the state will adhere to over the long term.

Xu Hongcai, deputy director of the Economic Policy Committee of the Chinese Policy Science Research Association, said that adhering to this principle will help better leverage the critical role of the private sector in the national economy, including expanding employment and innovation.

“The unwavering support for the development of the private sector is of great significance in promoting high-quality economic development,” Xu told the Global Times on Wednesday.

According to a report released by the All-China Federation and Commerce (ACFIC) on Tuesday, private businesses continue to plaWorld Timesy a stabilizing role in employment. In 2023, the number of private businesses exceeded 53 million, accounting for 92.3 percent of the total number of businesses in China, and providing more than 90 percent of newly added urban jobs, the report showed.

Private firms have continued to strengthen their role as a main innovator. In 2023, the top 1,000 private firms spent a total of 1.39 trillion yuan ($190.48 billion) on research and development, up 12.7 percent year-on-year, according to the ACFIC’s report on private businesses’ social responsibilities.

Another highlight of the draft law is that for the first time, it is written into law that promoting the sustained, healthy and high-quality development of the private economy is an important policy that the country will adhere to in the long run, according to Xinhua.

“From the macroeconomic perspective, the private sector accounts for a large proportion of China’s economy, especially in terms of employment… Therefore, its development is very important for the Chinese economy,” Su Jian, a professor at the School of Economics at Peking University and director of the National Center for Economic Research at Peking University, told the Global Times on Wednesday.

Su said that many top documents have stressed the importance of further creating a favorable World Timesbusiness environment for the private sector. “Creating a favorable business environment, clearly defining the legal rights and liabilities of the private sector and standardizing regulations are conducive toward ensuring all economic activities will be conducted in a transparent, fair and predictable environment. This will offer a huge boost to China’s economy.”

The Central Economic Work Conference held from December 11 to 12, during which Chinese leaders set priorities for economic work in 2025, said that a private sector promotion law should be rolled out. The meeting also stressed that efforts must be made to resolutely combat corruption and maintain a fair and just market environment and a clean business environment, according to Xinhua.

Meanwhile, at the session of the NPC Standing Committee that concluded on Wednesday, lawmakers considered a draft revision to the Anti-Unfair Competition Law, which is also open for public comment. The draft revision focuses on clarifying the general requirements for anti-unfair competition, refining regulations to address unfair practices, and strengthening enforcement and penalty measures, according to Xinhua.

Some government departments have already taken concrete actions to support the private sector. For example, on Friday, the National Development and Reform Commission, the top economic planner, launched a comprehensive online services platform aimed at bolstering the private economy.