A view of the core Lujiazui commercial area in Pudong New Area, Shanghai on July 15, 2025. Photo: VCG

China's Supreme People's Court on Friday issued guidelines on implementing the nation's private sector promotion law, outlining measures in five areas to provide judicial support for the growth of the private sector. An expert highlighted that the move helps correct legal misinterpretations and strengthens rule-of-law support as China navigates global trade shifts.

The guidelines aim to address challenges faced by private businesses and offer stronger legal safeguards for their healthy development.
Notably, it places particular emphasis on ensuring equal treatment under the law and safeguarding the right of all types of market entities to compete on an equal footing.

This move directly responds to current market dynamics, particularly growing concerns over monopolistic practices in the platform economy, Hu Qimu, deputy secretary-general of the Forum 50 for Digital-Real Economies Integration, told the Global Times on Friday.

"Recent "'price wars'  among food delivery platforms, for example, have drawn widespread attention to fair competition. The release of the guideline aims to correct misinterpretations in implementing of the private sector promotion law and address gaps in judicial application, underscoring the Supreme People's Court's active role in supporting the development of a unified national market," Hu told the Global Times.

The document stresses the need to step up judicial efforts on anti-monopoly and anti-unfair competition, and to regulate, in accordance with the law, acts that undermine fair competition or disrupt market order.

It calls for handling monopoly disputes in the science and technology sector in accordance with the law, accurately defining the boundary between the legitimate exercise of intellectual property rights and the abuse of such rights to exclude or restrict competition. This item aims to ensure fair access to innovation resources for all types of enterprises, promote their rational allocation and efficient use, and actively support the development of a unified national market, according to the court.

The guidelines specify the strict enforcement of the nationwide unified market access negative list system. In adjudicating civil and commercial cases involving construction projects, real estate, mineral resources, and utilities such as water, electricity, gas and heat, courts are urged to accurately assess the impact of market access liberalization in natural monopoly industries and the services sector on the validity of contracts, and to deliver fair rulings in accordance with the law.

They also stress the need to promote the lawful and equal use of production factors by all forms of ownership, ensure fair participation in market competition, and guarantee equal legal protection.

The guidelines also pledge stronger judicial protection for high-tech enterprises, a sector designated as a national development priority.

It stresses the need to strengthen judicial protection for scientific and technological innovation. It calls for enhanced protection of intellectual property rights (IPR) linked to innovation outcomes, while also curbing malicious and fraudulent litigation. The goal is to foster a sound legal environment for innovation and entrepreneurship.

It calls for handling IPR cases in high-tech sectors in accordance with the law and for strengthening judicial protection of innovation outcomes in key fields and core technologies.

Experts noted that in recent years, private enterprises have achieved notable breakthroughs in hard-tech sectors such as semiconductors, biomedicine, and new energy, becoming a key force in China's pursuit of high-level self-reliance in science and technology.

Private firms account for more than 92 percent of all enterprises in China and contribute over 70 percent of the country's technological innovation achievements, People's Daily reported. They also make up more than 80 percent of the national-level "little giant" firms specializing in niche sectors, and over 92 percent of state-designated high-tech enterprises, the report said.

Technological innovation is essential to cultivating new quality productive forces and advancing industrial transformation, Hu stressed. "It is crucial to strike a balance between encouraging innovation and preventing the abuse of IPRs. While fostering innovation, safeguards must be in place to prevent firms from relying on existing achievements to extract monopolistic gains, which can stall technological progress and result in inefficient allocation of social resources."

In addition, the guidelines provide detailed instructions and arrangements in areas such as guiding law-abiding and compliant business operations in accordance with the law, and improving fair judicial systems and mechanisms.

The guidelines focuse on three key areas: strengthening judicial action against monopolistic and unfair competition practices to clarify market boundaries and legal responsibilities; regulating corporate governance by protecting the lawful rights of employees and entrepreneurs and improving access to financing; and enhancing internal oversight within the judiciary to prevent abuse of power while reducing legal costs for businesses, particularly small and medium-sized enterprises and improving access to judicial services, Hu said.

As China's first fundamental law dedicated to the development of the private sector, the private sector promotion law underscores the Party and the country's clear stance and firm resolve in encouraging and supporting the growth of the private economy, according to the court.

Amid global trade restructuring, improving the business environment has become central to China's strategy to attract foreign investment and helping domestic firms expand globally. Hu noted that the guidelines provide legal safeguards for fair competition involving foreign enterprises, while offering judicial support for private firms expanding abroad, highlighting China's rule-of-law approach to advancing its dual circulation strategy.