Opinion: New Law Lays New Foundation for China’s Private Sector
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China has unveiled its long-anticipated Private Economy Promotion Law, a landmark statute passed by the Standing Committee of the 14th National People’s Congress (NPC) on April 30. It is the country’s first foundational law dedicated specifically to developing the private sector. After three readings — in December 2024, February 2025 and April 2025 — the law, consisting of nine chapters and 78 articles, is scheduled to take effect on May 20. It addresses fair competition, investment and financing, technological innovation, operational regulation, service guarantees and the protection of rights.
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- China passed its first Private Economy Promotion Law on April 30, 2025, effective May 20, to support private sector development with 9 chapters and 78 articles.
- The law enshrines fair competition, equal treatment, legal protection, tailored financial services, and enhanced government accountability for private businesses.
- It formalizes the private economy’s legal status and aims to foster a high-level socialist market economy; implementation and supporting regulations remain critical.
- December 2024：
- The first reading of China's Private Economy Promotion Law was held.
- February 2025：
- The second reading of China's Private Economy Promotion Law took place.
- April 2025：
- The third reading of the Private Economy Promotion Law was conducted.
- April 30, 2025：
- The Standing Committee of the 14th National People’s Congress passed the Private Economy Promotion Law.
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