Private sector bill expected to help inject vitality into economy

The draft of the private sector promotion law, under review by the top legislature, is expected to promote the sustainable and sound development of the private economy, indicating China's long-term policy to promote the healthy and high-quality development of the private economy.

The private sector has shown strong resilience in the first quarter of this year, with new business registrations rising steadily. But the escalation in Sino-US trade frictions is putting more pressure on the private sector.

The draft law is a critical step toward deepening reform and opening-up and optimizing the business environment. It will provide institutional safeguards for the high-quality development of China's private economy amid growing external uncertainty.

As the United States frequently accuses China of "non-market policies" to justify its coercive measures, this legislation clarifies the equal status of the private economy. It will inject innovation momentum into private enterprises by supporting private capital participation in major infrastructure projects, encouraging industry-academia-research integration and strengthening intellectual property protection. It will also facilitate the "going global" strategy of private enterprises, helping them circumvent tariff barriers by establishing overseas operations and tapping into Belt and Road markets, thereby transitioning from "low-end outsourcing" to "global value chain leaders".

This planned shift aligns with the optimization of China's foreign trade structure, where diversified markets such as the Association of Southeast Asian Nations and the European Union have become new growth drivers. It will assist private enterprises by promoting cross-border e-commerce, shifting exports from "scale expansion" to "quality improvement".

Domestically, the draft law will strengthen the market by unleashing private investment potential and reducing reliance on the United States. Internationally, private enterprises will leverage China's comprehensive industry chain advantages to reinforce its irreplaceable role in the global division of labor. This model-promoting openness through the rule of law and seeking breakthroughs through innovation — offers a new paradigm for developing countries participating in global economic governance.

The draft law is both a solution to navigate Sino-US trade frictions and an inevitable choice for China's high-quality economic development. Through legal safeguards, market-driven incentives and global strategies, China's private economy is poised to turn crisis into opportunity, emerging as a stabilizing force in the global economy.