China's Ministry of Justice has announced intensified legal reforms to strengthen market confidence and streamline business operations this year, as Minister He Rong outlined ambitious plans following the conclusion of the 14th National People's Congress session in Beijing.
Speaking at the Ministers' Corridor interview on March 12, 2026, He revealed that last year's nationwide regulatory campaign addressed over 60,000 enterprise-related legal cases, saving businesses nearly 30 billion yuan ($4.37 billion) in economic losses through systematic review and rectification.
The ministry now prioritizes four key challenges: establishing a unified national market, combating regional protectionism, eliminating unfair market entry restrictions, and preventing destructive market 'involution' – a term describing excessive competition that erodes profitability. These measures aim to create what He described as 'a rule-based ecosystem where innovation and fair competition thrive.'
Business analysts predict these reforms will particularly benefit foreign and overseas investors navigating the Chinese mainland's regulatory landscape. The announcement comes as China seeks to reinforce its position as Asia's largest recipient of cross-border investment, with Q1 2026 figures expected to show continued growth in advanced manufacturing and green technology sectors.
