China's landmark Private Sector Promotion Law came into force on May 20, 2025, marking a pivotal shift in the world's second-largest economy. The legislation aims to streamline regulations, enhance market access, and foster innovation through tax incentives for R&D-intensive industries.
International analysts highlight three key implications: accelerated tech development in artificial intelligence and green energy sectors, improved transparency for cross-border partnerships, and potential recalibration of global supply chains. CGTN's Xu Xinchen reports that multinational corporations are already reevaluating investment strategies, with one European CEO describing the law as 'a bridge between Chinese dynamism and international best practices.'
While the law strengthens intellectual property protections – a longstanding concern for foreign firms – experts caution that implementation will determine its real-world impact. The legislation coincides with China's push for high-quality development, offering new opportunities in advanced manufacturing and digital infrastructure projects.
