A worker stretches an aluminum panel at a private company in Quangang district, East China's Fujian Province on August 22, 2023. Photo: cnsphoto

China has started the drafting of a law for promotion of the private economy and the legislative process will be accelerated, in a bid to put into practice the requirement for equal treatment of state-owned enterprises and private enterprises in the legal system, China Media Group reported on Wednesday.

According to a symposium on legislative work jointly convened by the Ministry of Justice, the National Development and Reform Commission (NDRC) and a commission of the Standing Committee of the National People's Congress, the legislative work on the law should take in the concerns of enterprises. It should also focus on protection of property rights and the rights and interests of private enterprises and entrepreneurs in accordance with the law, fair participation in market competition, equal use of factors of production, fair law enforcement and impartial administration of justice.

The country should maintain the consistency and stability of the formulation and implementation of policies, in a bid to stimulate the endogenous impetus and innovative vitality of business entities, as well as promoting the accelerated development of new productive forces.

The Ministry of Justice said that the drafting of the law has been initiated, and that it will adhere to the principle of listening to a wide range of opinions and abiding by the legislative procedures, so as to formulate a practical and highly operational law, promote the healthy development of the private economy, and create a first-class business environment that is market-oriented, rule of law-oriented and internationalized.

"The introduction of the law demonstrates the country's determination to support the healthy development of the private economy. The adoption of legislative means to safeguard the private economy not only recognizes the status and role of the private sector in promoting the high-quality development of China's economy, but also encourages private entrepreneurs, thus helping to raise the confidence and expectations of private enterprises and stimulate their greater development potential," Wang Peng, an associate researcher at the Beijing Academy of Social Sciences, told the Global Times on Wednesday.

The law will provide a series of legal and institutional safeguards to ensure that the legitimate rights and interests of private enterprises are effectively protected, Wang said, noting that it will create a more stable, fair and transparent business environment for private enterprises and reduce their business risks and uncertainties.

In addition, the law will encourage private firms to enhance investment and accelerate technological innovation, thereby providing strong support for the country's economic upgrading as well as high-quality development, the expert noted.

China has vowed to support development of the private economy. The Central Economic Work Conference, a tone-setting meeting held in December, called for moves to advance the development of the private economy, and encourage small and medium-sized enterprises to develop special and sophisticated technologies to produce novel and unique products.

The NDRC, China's top economic planner, announced in January concrete measures in six areas to enhance support for the private economy, including accelerating the legislative process of the law for promotion of the private economy and attracting more private capital to participate in major national engineering projects in areas such as railways, nuclear power, and energy.

In November, China's central bank said it would continue to enhance financial support for private enterprises and work to lower their comprehensive financing costs. In the next stage, more monetary policy support will be tilted toward private micro and small companies.

Global Times