What’s new: China has begun drafting a law on the promotion of the private economy, state media reported, as the country accelerates efforts to ensure equal treatment of state-owned enterprises and private companies.
The move was announced Wednesday during a legislative work meeting held by the Ministry of Justice, National Development and Reform Commission and the State Council’s Legislative Affairs Commission, state broadcaster CCTV reported.
The legislative work should cover core concerns of private companies, including protection of property rights, equal access to factors of production, and equal protection under the law, the report said.
The aim is to formulate a “pragmatic, effective and highly operative” law to promote “healthy development of the private economy,” Ministry of Justice personnel said during the meeting, adding that they will gather a wide range of opinions during the process.
The background: The All-China Federation of Industry and Commerce, a chamber of commerce led by the party that aims to promote the private sector, advocated for national legislation to be enacted to protect the rights of private businesses during the annual political meetings known as the “Two Sessions” in March 2023.
Several cities in China announced plans last year to introduce local legislation to promote the private economy, after the central government called for equal treatment of the private sector as part of efforts to revive economic growth.
Contact reporter Kelly Wang (jingzhewang@caixin.com) and editor Jonathan Breen (jonathanbreen@caixin.com)
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