Arya News - The highlight is the Private Sector Promotion Law, which took effect on May 20, and marked a significant milestone as the country`s first foundational law in this field, and is pivotal in boosting private economic development and instilling confidence among entrepreneurs.
BEIJING – China has stepped up its legislative initiatives over the past year to strengthen legal support and enhance the framework needed for high-quality economic growth and increased openness, officials said.
Zhang Tao, from the Legislative Affairs Commission of the National People’s Congress Standing Committee, China’s top legislature, highlighted the Private Sector Promotion Law, which took effect on May 20. He noted that this legislation marked a significant milestone as the country’s first foundational law in this field, and it is pivotal in boosting private economic development and instilling confidence among entrepreneurs.
The law, which has 78 articles, emphasizes equal treatment for all market entities and, for the first time, explicitly states that fostering the sustainable, healthy and high-quality development of the private sector is a major long-term national policy, Zhang said.
“It has also played an essential role in building a high-level socialist market economy, and it will enhance the confidence of people engaged in the private sector in its development,” he added.
Hu Chengzhong, chairman of a private electrical company in Zhejiang province, has been closely following the law. He said that he and his team have long been committed to steering the low-voltage electrical industry toward green, low-carbon and high-quality development.
“A stable and predictable legal environment is crucial for facilitating a green transition. Our company’s initiatives in investing in green technology and innovating our business model particularly need strong legal safeguards to reinforce our confidence,” said Hu, who is also a deputy to the NPC.
“Thanks to the law, our country has strengthened the institutional foundation for private sector development. By leveraging the firmness of the rule of law to eliminate systemic and institutional barriers, we are injecting significant momentum into the high-quality growth of the private economy,” he said.
Both Zhang and Hu underscored the importance of transforming legislative intent into concrete services and support for businesses, expressing their strong desire to see this transformation realized.
Zhang said that the commission has enhanced education and explanation following the law’s enactment, and urged relevant departments to amend or repeal a total of 1,466 normative documents contradicting the new legislation.
Hu also commended Zhejiang prosecutors for their law enforcement measures, which include strengthening judicial protection for key technologies and independent brands to foster innovation, as well as visiting enterprises regularly to explain the law and help mitigate legal risks in areas such as environmental conservation, safety production and taxation.
In response to significant changes in the global trade landscape and evolving international rules, China amended the Foreign Trade Law last year.
With the rise of unilateralism, protectionism and international bullying, along with rapid changes in the global trade environment, it is important to better coordinate development and security, uphold the multilateral trading system, and maintain a fair international economic and trade order while legally protecting foreign trade operators’ legitimate rights and interests, said Xu Yongan, another official from the commission.
The revised law facilitates management of the negative list for cross-border service trade, supports digital trade development and establishes a green trade system. It also enhances the protection of intellectual property rights related to foreign trade and promotes the development of international transportation channels, Xu said.
Additionally, small and medium-sized enterprises will benefit from convenience in regulation, financing and foreign exchange settlement under the law, which takes effect on March 1.
Moreover, China has revised foreign-related provisions in several other laws, including the Arbitration Law and the Maritime Law, to further promote openness and align with international standards, the commission said.
All these measures aim to advance China’s high-level opening-up to the world, Xu added.