China Enacts Private Economy Promotion Law

On April 30, 2025, the Law of the People’s Republic of China on the Promotion of the Private Economy was adopted, coming into force on May 20, 2025.

As China’s first foundational law specifically dedicated to private economy development, the Private Economy Promotion Law comprises 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.