China is taking significant steps to bolster its private sector with the release of a draft law dedicated to promoting private enterprises. The draft, unveiled on Thursday and open for public input until November 8, marks a pivotal moment as it's the first basic law in China specifically focused on private sector development.
The 77-article draft law emphasizes equal treatment and protection of private businesses, aiming to create a legal environment conducive to the growth of all economic sectors. Experts believe this move will foster a more dynamic and innovative market landscape.
Qi Xiangdong, vice-chairman of the All-China Federation of Industry and Commerce, remarked that \"a law-based market is the best business environment.\" Speaking to financial media Cailian Press, Qi noted that the draft law is practical and effective, reflecting the expectations of private enterprises and clearly defining the responsibilities of various departments and localities.
The proposed law includes provisions to ensure fair participation and competition for private businesses, improve their investment and financing environment, support technological innovation, optimize services, and strengthen the protection of their rights and interests. It also outlines measures to better regulate and guide enterprises, promoting healthy development and safeguarding the legitimate rights of employees.
One of the key highlights is the implementation of a nationwide unified negative list system for market access. This means that 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, stated that the draft law dedicates significant attention to supporting technological innovation with many practical measures. The draft proposes supporting private enterprises in investing and starting businesses in strategic emerging industries and future industries. It encourages efforts to upgrade and transform traditional industries and to participate in the investment and construction of modern infrastructure.
The draft also supports private enterprises in participating in national scientific and technological research projects. Capable private enterprises are encouraged to lead major technological breakthroughs and are granted access to national major research infrastructure.
Another noteworthy aspect is the draft's emphasis on establishing effective communication mechanisms between the government and enterprises. It stipulates that when formulating laws, regulations, or major decisions closely related to the production and business activities of market entities, it is important to seek input and suggestions from various economic entities, including private enterprises, as well as industry associations and chambers of commerce.
The release of this draft law signifies China's commitment to fostering a favorable environment for private sector growth, ensuring that private businesses can compete fairly and thrive in the market. The public is invited to submit comments on the draft until November 8, reflecting a collaborative approach to shaping the future of the private sector in China.
Reference(s):
cgtn.com
