China Enacts Private Economy Promotion Law

On April 30, 2025, the Law on the Promotion of the Private Economy was adopted, and is scheduled to take effect on May 20, 2025.

As China’s first foundational legislation dedicated specifically to the development of private economy, the Law consists of 9 chapters and 78 articles, covering General Provisions, Fair Competition, Investment and Financing Promotion, Scientific and Technological Innovation, Business Regulation, Service Support, Rights Protection, Legal Liability, and Supplementary Provisions.

Regarding fair competition safeguards and investment-financing promotion, the Law stipulates that the State implements a nationally unified market access negative list system. All economic entities, including private economic organizations, may equally enter, in accordance with the law, sectors not listed on the market access negative list. It supports private economic organizations in investing and starting businesses in strategic emerging industries, future industries, and other fields, encourages technological transformation and upgrading of traditional industries, and promotes their participation in modern infrastructure investment and construction.