Shanghai Municipal People’s Congress Passes Regulations on Promotion of Private Economy

On September 25, the Standing Committee of the Shanghai Municipal People’s Congress adopted the Shanghai Regulations on Promotion of Private Economy (the “Regulations”), which will take effect on October 20, 2025.

The Regulations specify that private economic organizations enjoy equal legal status and market opportunities with other economic organizations, prohibiting implicit restrictions in areas such as market access, government procurement, and public resource transactions. The Regulations support private enterprises’ participation in major projects, scientific and technological innovation, financial services, foreign economic and trade cooperation, and industrial park construction. They improve financing guarantee, credit repair, and dispute resolution mechanisms; strengthen intellectual property protection, business norms, and rights safeguards; clarify the obligation of government agencies and state-owned enterprises to promptly pay accounts; and detail requirements for administrative penalties, legal liabilities, and fulfillment of policy commitments.