High-Praise for Promoting Private Economy Law

□ Li Hongjuan (Research Fellow, Institute of Economics and Management, Chinese Academy of Macroeconomic Research)

Since the 18th National Congress of the Communist Party of China, the Central Committee has issued a series of policies to promote the development of private economy. The 20th National Congress of the Communist Party of China has made new deployments for promoting private economy development. At this critical historical moment, issuing a special law to provide legal guarantees for high-quality private economy development is an important step in consolidating and developing socialist rule of law in China, safeguarding the legitimate rights and interests of private enterprises, and responding to their expectations.

Law is the best business environment. The "Draft Law on Promoting Private Economy" (public consultation draft) is focused on breaking down institutional barriers faced by private economy development, maintaining fair competition, promoting investment and financing, driving technological innovation, regulating operations, optimizing services, and protecting the rights and interests of private enterprises and entrepreneurs.

Highlight One: The first law named "Private Economy" in China's history.

This will be the first law with the name "Private Economy" since the founding of New China. It is a major achievement in socialist market economy construction and comprehensive deepening reform in the new era. Since the reform and opening-up, the Party and the state have attached great importance to private economy development work, issuing various policy measures to promote private economy development and drive its growth. In the new era, building a high-level socialist market economic system, stimulating the vitality of all types of entrepreneurship, and promoting the development of various forms of ownership require strong legal protection.

Highlight Two: Responding to developmental needs, issuing specialized laws to promote private economy development, and solidifying the institutional basis for high-quality private economy development.

Establish good laws, govern well, and develop. In recent years, China has continued to strengthen legal guarantees for private economy development, from issuing the "General Principles of Civil Law" to revising the "Anti-Monopoly Law", and even issuing a series of policy measures to promote private economy development. This time, it is specifically establishing laws on long-term and foundational institutional rules related to private economy development. For example, it explicitly defines the status of private economy in law, stating that "private economy is an important component of socialist market economy, is the driving force for promoting Chinese-style modernization, and is a crucial basis for high-quality development."

Highlight Three: Optimizing the development environment, with "equality" as the main axis, and using legal systems to ensure equal treatment.

The "Draft Law on Promoting Private Economy" (public consultation draft) emphasizes that the state will adhere to the principle of equality in treating all types of economic organizations, providing equal opportunities for development, and ensuring equal protection. It further clarifies the legal status of private economy.

Highlight Four: Responding to enterprise concerns, designing targeted legal provisions to ensure the legitimate rights and interests of private enterprises and entrepreneurs.

The "Draft Law on Promoting Private Economy" (public consultation draft) focuses on resolving major issues affecting the long-term healthy development of private enterprises, such as fair participation in market competition, equal access to production factors, fair law enforcement, and protection of private enterprise rights. It releases a strong signal of responding to enterprise concerns and supporting private economy development.

Highlight Five: Consolidating the foundation of development, with high-quality development as the guiding principle, and regulating operations as an important content.

The "Draft Law on Promoting Private Economy" (public consultation draft) emphasizes promoting private economy development while guiding it towards high-quality development. It highlights the importance of guiding private enterprises to strengthen employee ideological guidance, improve governance structures, regulate operations, and enhance internal supervision. It encourages private economic organizations to strengthen risk prevention management and optimize main business.

Highlight Six: Highlighting legal responsibility, with legal safeguards as the foundation, and enhancing the practical effectiveness of laws.

The "Draft Law on Promoting Private Economy" (public consultation draft) establishes a series of measures to protect private enterprise rights and interests, including property rights, debt rights, intellectual property rights, and other lawful assets. It emphasizes the practical effectiveness of laws in ensuring that private enterprises have a sense of gain and security.