China began drafting a law to promote the private economy, marking a decisive step in boosting business confidence and reviving growth in the world's second-largest economy, analysts said on Thursday.
They said this legislative effort will not only improve the overall business environment, but will also address pressing issues for private businesses, providing practical solutions to the challenges they face.
While the upcoming law marks a promising shift to a more private-sector-friendly legal framework, analysts stress the need for continued efforts to address persistent challenges, including financing difficulties and higher business costs.
On Wednesday, the Ministry of Justice, the National Development and Reform Commission and the Legislative Affairs Commission of the Standing Committee of the National People's Congress jointly held a forum on legislative work, at which it was said that draft laws to support private sector development had begun to be drafted and that the legislative process would be accelerated.
Bai Wenxi, Vice Chairman of the China Enterprise Capital Alliance, said: "By initiating the drafting of the Private Sector Promotion Law, China aims to create a more conducive environment for the development of private enterprises and provide strong legal guarantees for their healthy growth. ”
According to ** TV, the symposium said that the focus will be on protecting the property rights of private enterprises and the rights and interests of entrepreneurs in accordance with the law, ensuring that they participate in market competition in a fair competition environment, have equal access to factors of production, and settle arrears owed to small and medium-sized enterprises.
Hong Yong, an associate researcher at the Institute of E-Commerce of the China Academy of International Economic Cooperation, said: "This reflects the company's firm commitment to cultivating the private economy, with a special emphasis on solving the fundamental problems of private enterprises." ”
This marks an important step towards creating a more transparent, stable and accessible business environment and ensuring fair competition.
Hong said that the private sector is the main engine of economic growth, creating a large number of jobs and making a significant contribution to China's GDP.
Due to its strong innovation capacity and adaptation mechanism, it plays a key role in enhancing economic vitality and promoting transformation and upgrading. ”
Official figures show that the private sector has been a key driver of China's economic growth over the past few decades, contributing more than 60 percent of gross domestic product, 70 percent of technological innovation and 80 percent of urban employment.
Wang Peng, a researcher at the Beijing Academy of Social Sciences, said that although private enterprises have benefited from a series of support measures, they still face difficulties in terms of lack of funds, market access barriers and obstacles to fair competition.
He said the law would help solve the problems faced by private companies, saying it would greatly boost business confidence, further promote their innovative development, help attract more private investment, and promote high-quality economic growth.
Looking ahead, Wang said, the state needs to better implement existing support policies and introduce more detailed measures to support the private economy, including further tax and fee cuts and more measures to improve market access.
Zhao Jiazhen, executive director and co-CEO of PDD Holdings, a China's leading discount platform, said that in recent years, the company has launched a series of policies to support the development of the private economy, which has given the company a sense of satisfaction and promoted its high-quality development.