On Apr. 30, 2025, CHI PRL adopted and promulgated the Private economy promotion law, which takes effect from May 20, 2025, at its 15th Standing Committee meeting.
On Oct. 10, CHI NDRC proposed private economy promotion law.
CHI NDRC drafted Private economy promotion law, which consolidates policies and practices to provide legal assurance for the long-term development of private sector.
Follows CHI Courts Oct. 2024 on opinions re promoting private economy, see #241162.
Overview of Proposal
The proposed legislation ensures equal legal treatment and protection for all types of economic entities, demonstrating state’s long-term commitment to the private sector.
It emphasizes the importance of lawful business operations, social responsibility, and provides mechanisms for resolving specific challenges faced by private enterprises.
Includes provisions on ensuring fair competition, optimizing investment, financing conditions, supporting tech innovation, focusing compliance, and ethical standards.
Strengthens government services, legal safeguards for private enterprises, offering dispute resolution mechanisms, as well as specifying penalties for violations.
Consultation End
The comment period for this consultation is open until Nov. 8, 2024.
Dec. 19, 2024 CHI PRL Draft Review
On Dec. 19, 2024, CHI PRL announced that draft of the above law was being reviewed.
The draft includes fair competition guarantees, investment and financing environment improvements, support for technological innovation, protection of private sector rights.
Document dated Dec. 19, 2024, received from CHI PRL Dec. 20, summarized Dec. 27.
Dec. 25, 2024 CHI PRL Consultation Open
On Dec. 25, 2024, CHI PRL issued consultation document for the Private economy promotion law; consultation will be open for 30 days, i.e., until Jan. 24, 2025.
Feb. 25, 2025 CHI PRL Second Draft
On Feb. 25, 2025, CHI PRL said second review draft strengthens legal protections for private businesses by prohibiting unauthorized fees, fines, and forced contributions.
Prevents retroactive enforcement of regulations (except when beneficial), promotes consolidated inspections, requires government reports on private sector development.
Apr. 25, 2025 CHI PRL Third Review
On Apr. 25, 2025, CHI PRL said the third review will be conducted at 15th meeting of the Standing Committee of 14th National People's Congress from Apr. 27 to 30, 2025.
Apr. 30, 2025 Law Promulgated
On Apr. 30, 2025, CHI PRL adopted and promulgated the Private economy promotion law, which takes effect from May 20, 2025, at its 15th Standing Committee meeting.
