The Chinese mainland has stepped into a bold new era as a landmark Private Economy Promotion Law takes effect. This forward-thinking legislation is all about leveling the playing field by guaranteeing equal treatment, fair competition, and shared development for private enterprises — which now account for over 90% of registered businesses.
Imagine a world where startups and established firms get an equal shot at success! 🚀 After months of deliberation, the law meticulously incorporates 26 explicit mentions of "equality," "fairness," and "equal protection," aiming to dismantle longstanding barriers in key sectors such as energy, finance, and infrastructure.
Data from the State Administration for Market Regulation shows that as of March 2025, there are over 57 million privately owned enterprises and more than 125 million self-employed individuals fueling the market. This legal boost seeks to transform institutional challenges into opportunities by introducing clear market access reforms. For instance, the formalized negative list mechanism now allows private investment in all sectors not explicitly restricted — a move already sparking high-caliber projects in regions like Zhejiang.
Leading voices in the industry are optimistic. Li Xin of Shandong University of Finance and Economics notes that in a global economy still adjusting to complex conditions, this law helps stabilize expectations. Meanwhile, Liu Yonghao of New Hope Group and Qi Xiangdong of Qi-Anxin Technology Group praise the new legal framework for its potential to liberate private capital and foster innovation, especially in tech-driven areas like advanced manufacturing, artificial intelligence, and green energy.
With private businesses contributing over 60% of GDP and 80% of urban employment, this reform is not just regulatory news — it's a game-changer for a resilient, future-ready market. The initiative is set to inspire confidence and drive growth while fueling a surge in innovation and robust competition. 💡
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China's private economy enters new era as landmark law takes effect
cgtn.com
