Overview

• China's National People's Congress Standing Committee has passed the Private Economy Promotion Law, which will come into force on May 20, 2025.
• The law includes provisions to ensure equal market access, promote fair competition, and safeguard the rights and interests of private businesses.
• Beijing reaffirmed its commitment to both strengthening state-owned enterprises and supporting the private sector under its 'two unswervingly' policy.
• Private firms are encouraged to contribute to scientific and technological innovation, with a focus on developing core technologies and meeting strategic national needs.
• The legislation addresses concerns over profit-driven law enforcement by local authorities, aiming to standardize and regulate enforcement practices to protect businesses.