China's new law aims to strengthen private sector

China's newly introduced Private Economy Promotion Law is poised to help private enterprises overcome ongoing challenges such as financing difficulties and an uneven business environment, according to experts at an event organized by the Center for China and Globalization on Tuesday in Beijing.

"The law will boost the confidence of private entities and drive their growth. It will undoubtedly have a significant impact on the private sector and reinforce the economic foundation for Chinese modernization," said Huang Hanquan, head of the Chinese Academy of Macroeconomic Research.

Huang emphasized that the law focuses on removing institutional barriers and represents several "firsts" for China's private economy. It is the first time the legal status of the private sector has been clearly defined, and also the first time promoting the sustainable and high-quality development of the private sector has been explicitly stated as a major long-term national strategy, according to Huang.

On the issue of fair competition, Huang noted that the law strengthens market evaluation systems and enforces fair competition rules, ensuring that private enterprises can compete on a level playing field.

"Enterprises say this law will protect their rights, promote operational standardization, and encourage innovation, while also improving the quality of government services," said Wei Chu, dean of the School of Applied Economics at Renmin University of China.

Based on his academic research and a recent survey of private enterprises, Wei pointed out that many companies still face barriers in infrastructure, access to public utilities, fair competition, and market entry. He said the new law regulates government behavior and responds directly to these longstanding concerns.