China is taking a bold step to boost its private sector with a new draft law unveiled on October 10, 2024. The government aims to restore investor confidence and stimulate private enterprise in the face of a slowing economy and weak private investment.
The draft law outlines key measures to support private enterprises, promising fair competition, improved investment climate, and equal access to resources like capital and technology. China sees this law as crucial for the long-term health of its economy, aiming for sustainable and high-quality development of the private sector.
The public can provide feedback on the proposal until November 8, 2024, allowing for broader input. This legislative effort follows previous measures introduced in July 2023 to strengthen the private sector, which have yet to yield significant results.
The Importance of China’s Private Sector
China’s private businesses are facing challenges compared to the growing state sector. To address this, the government is proactively taking steps to support the private sector. The draft law comprises nine chapters and 77 articles covering various aspects of private sector operations and support, reflecting China’s commitment to private sector growth.