China's National People's Congress (NPC) Standing Committee has passed a landmark law to strengthen support for the private sector, marking a milestone in the country's economic reform efforts. Approved at the 15th session of the 14th NPC Standing Committee in Beijing, the legislation aims to foster fair competition and long-term growth for privately owned enterprises.
Leveling the Playing Field
Liu Min, deputy head of the National Development and Reform Commission's private economy development bureau, emphasized the law's focus on creating equal opportunities for all economic entities. The legislation formalizes China's commitment to ensuring private businesses can 'compete on a level playing field' alongside state-owned counterparts.
Sustainable Growth Mandate
Yang Heqing of the NPC Legislative Affairs Commission highlighted that the law codifies private sector development as a 'major and long-term policy.' Statistics from the State Administration for Market Regulation reveal the sector's critical role: as of March 2025, China hosts over 57 million private enterprises, accounting for 92.3% of all registered businesses.
Four Decades of Transformation
The legal framework builds on China's economic evolution since its reform and opening-up in the late 1970s. From the establishment of special economic zones like Shenzhen to today's global innovation hubs, the private sector has become fundamental to China's economic identity. Analysts suggest this law signals renewed confidence in market-oriented reforms while maintaining stability.
