BEIJING: China’s top legislature passed a keenly anticipated law on Wednesday (Apr 30), state news agency Xinhua reported, to help shore up the private sector amid trade tensions with the United States.
The Private Economy Promotion Law will take effect from May 20 and includes provisions on fair competition, access to investment and financing and rights protections.
The new law “will further optimise the development environment for private businesses, ensure fair market competition among all types of economic entities, promote the healthy growth of both the private economy and private entrepreneurs”, Xinhua said.
It consists of nine chapters and 78 articles, including fair competition, investment and financing promotion, technological innovation, and rights protection, it added.
A senior researcher at a Beijing think tank told South China Morning Post that the law would also prevent local authorities from unfairly targeting private businesses.
“In the past two years, the business community has responded strongly to profit-seeking law enforcement and officers going beyond their jurisdiction to collect fines or seize assets,” said Tang Dajie, a senior researcher with the China Enterprise Institute think tank.
“The law will restrict the law enforcement power of the public security department and promote strict, standardized, fair and civilized law enforcement.”
