Beijing: The main Chinese legislature adopted a long-awaited law on Wednesday, April 30, reported the Xinhua state news agency, to help consolidate the private sector in the midst of trade tensions with the United States.
The law on the promotion of the private economy will take effect from May 20 and includes provisions on fair competition, access to investment and financing and rights protections.
The new law “will optimize the development environment of private companies more, will ensure fair competition on the market between all types of economic entities, promote healthy growth in private economy and private entrepreneurs,” Xinhua said.
It consists of nine chapters and 78 articles, including fair competition, investment and financing promotion, technological innovation and rights protection, he added.
A principal researcher in a Beijing reflection group told South China Morning Post that the law would also prevent local authorities from unjustly targeting private companies.
“Over the past two years, the business world has strongly responded to the police and officers who are looking for profits exceeding their competence to perceive fines or seize assets,” Tang Dajie, principal researcher at the China Enterprise Institute's reflection group.
“The law will restrict the power to apply the law of the Department of Public Security and promote strict, standardized, fair and civilized police.”
