The headline discusses the introduction of the Private Economy Promotion Law in China, aimed at strengthening protections for private enterprises, with an emphasis on the “wealth first” theory. On April 30, China’s 14th National People’s Congress Standing Committee passed this law, which will be enacted starting May 20. The law comprises nine chapters and 78 articles, including fair competition, investment and financing promotion, technology innovation, competition regulations, service guarantees, rights protection, and legal responsibilities.
Xinhua News Agency highlighted the law as China’s first foundational law for private economic development, aiming to improve the environment for private economy development and ensure fair market participation. The new legislation is expected to promote the healthy development of the private sector, build a high-level socialist market economy, and enhance the role of private enterprises in the national economy and social development.
The initiative sends a message to bolster private enterprises. At the Chinese Communist Party’s 20th Central Committee’s third plenary session (20th Third Plenary Session) in July last year, the decision was made to draft the Private Economy Promotion Law. The draft, previously released, included provisions such as prohibiting fines on private companies without legal grounds.
Earlier this year, during renewed US-China trade tensions, President Xi Jinping held private talks in February with leaders from major domestic private companies like Huawei, BYD, Xiaomi, and DeepSeek. During these discussions, Xi emphasized that “some becoming wealthy first should promote common prosperity,” raising expectations for policy changes.