China’s draft private-economy promotion law reflects Beijing’s commitment to protecting the private sector from local government interference, a move welcomed by investors. In a market where property rights are crucial, this law is seen as necessary to counteract local authorities’ unfair treatment of private businesses.
Despite being a significant contributor to China’s economy, the private sector has faced challenges due to ideological biases favoring public ownership. This law aims to address these disparities and ensure fair treatment for all businesses.
As China’s economy slows down, local governments are resorting to desperate measures to boost revenues, often at the expense of private enterprises. This law seeks to curb such practices and provide a level playing field for all businesses.