China is advancing towards enacting its first basic law specifically aimed at fostering the development of the private sector. On Thursday, a draft law comprising 77 articles across nine chapters was released for public input, marking a significant step in creating a more favorable legal environment for private businesses.
The draft law emphasizes equal treatment and protection for private sector enterprises. \"A law-based market is the best business environment,\" said Qi Xiangdong, vice-chairman of the All-China Federation of Industry and Commerce, in an interview with financial media outlet Cailian Press. \"The draft law is both practical and effective, reflecting the expectations of private enterprises and clearly defining the responsibilities of various departments and localities.\"
The proposed legislation outlines provisions to ensure fair participation and competition for private businesses, improve investment and financing environments, support technological innovation, optimize services, and strengthen the protection of their rights and interests. It also includes measures to better regulate and guide enterprises, promote healthy development, and safeguard the legitimate rights of employees.
According to the draft, the state will implement a nationwide unified negative list system for market access. In areas not included in the negative list, all types of economic entities, including private enterprises, will be allowed equal access in accordance with the law.
Wang Yi, vice-president of Renmin University of China, noted that the draft law devotes significant attention to supporting technological innovation and presents many practical measures. The draft proposes supporting private enterprises in investing in strategic emerging industries and future industries, encouraging efforts to upgrade traditional industries, and participating in the investment and construction of modern infrastructure.
Additionally, the draft supports private enterprises in participating in national scientific and technological research projects, allowing capable private enterprises to lead major technological breakthroughs and granting them access to national major research infrastructure.
The draft explicitly calls for establishing a smooth and effective communication mechanism between the government and enterprises. It emphasizes the importance of seeking input and suggestions from various economic entities, including private enterprises, as well as industry associations and chambers of commerce when formulating laws, regulations, and major decisions closely related to the production and business activities of market entities.
The draft law is open for public comments until November 8 on the websites of the Ministry of Justice and the National Development and Reform Commission, inviting feedback from all sectors of society.
Reference(s):
cgtn.com
