Workers check aluminum alloy components at a company in Binzhou, east China's Shandong Province, Feb. 26, 2025. Binzhou City is a major hub for private enterprises. In recent years, the city has fostered the development of private economy through comprehensive and end-to-end services. (Photo: Xinhua)

Regarding China's private economy promotion law, a spokesperson for the National People's Congress (NPC) said on Tuesday that it will work for the early promulgation of the law.

"Next, we will carefully revise the draft private economy promotion law based on the deliberation by the NPC Standing Committee, as well as opinions and suggestions from various sectors and work for the early promulgation of the law," said Lou Qinjian, spokesperson for the third session of the 14th NPC, the legislature, while holding a press conference in Beijing on Tuesday, one day prior to the opening of its annual session.

The proposed legislation, set to become China's first fundamental law dedicated to developing the private economy, explicitly defines the private sector as a vital pillar of China's socialist market economy, the Xinhua News Agency reported.

In December 2024, the draft private economy promotion law was submitted to the NPC Standing Committee by the State Council for preliminary deliberations, followed by another round of deliberation in February.

Relevant special committees under the NPC also solicited opinions from various sectors, including private enterprises, through seminars, research, and consultations, Lou said.

The spokesperson noted that the rule of law ensures the best business environment, and the draft private economy promotion law has included clauses concerning the commitment to the public and non-public sectors.

He said that this will have significant and far-reaching importance for ensuring that economic entities under all forms of ownerships have equal access to factors of production and are protected by the law, which benefits further improving the development environment for the private sector, boosting the confidence of private entrepreneurs and promoting the healthy and high-quality development of the private sector in China.

"The private sector has flourished under China's reform and opening-up policy. It is an integral part of China's socialist market economy," Lou said.

Private enterprises have long been a key driving force behind China's economic ascendance, contributing more than 60 percent of the country's GDP, and 80 percent of urban employment. By the end of September 2024, the country's 55 million registered private enterprises made up over 92 percent of all businesses in China, Xinhua reported.

Global Times