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On 30 April 2025, the 15th meeting of the Standing Committee of the 14th National People's Congress voted to adopt the Private Sector Promotion Law of the People's Republic of China, which came into force on 20 May. The introduction of this law is of epoch-making significance in the process of China's private economic development, and has built a solid cornerstone of the rule of law for the sustained, healthy and high-quality development of the private economy, marking the development of China's private economy into a brand new stage of the rule of law.

Under the current economic situation, the private economy, as an important force in China's economic development, plays an irreplaceable role in stabilising growth, promoting innovation, increasing employment and improving people's livelihood. However, the private economy is also facing many challenges in the process of healthy development, such as the fair competition environment needs to be improved, the investment and financing channels are not smooth enough, the support for scientific and technological innovation is insufficient, and the rights and interests protection mechanism is not sound enough. The promulgation of the Law on Promotion of Private Economy is precisely to respond to these realistic needs, solve the pain points and difficulties in the development of private economy through legislative means, and create a stable, fair, transparent and predictable environment for the development of private economy.

Against this background, JAVY law firm Supervisory Committee Director Ge Youshan's team of attorneys carefully wrote the ‘Interpretation of Provisions and Practical Guide of the Private Sector Promotion Law of the People's Republic of China’ (hereinafter referred to as the ‘Guide’) in response to the urgent needs of all sectors of the community for the understanding and application of the law.

In terms of content, the Guide provides a detailed article-by-article interpretation of the Law of the People's Republic of China on the Promotion of Private Economy, which not only analyses in depth the legislative background, purpose and connotation of the provisions of the law, but also elaborates on the specific application of the law in the areas of fair competition, investment and financing, scientific and technological innovation, standardisation of business, service guarantee and protection of rights and interests, which helps lawyers to clearly understand the requirements of the law and grasp the essence of the law.

In terms of practicality, the Guide puts forward practical and easy-to-use operational guidelines for the legal problems that private economic entities may encounter in the course of actual operation, providing clear and specific legal guidelines for enterprises, which help them effectively prevent legal risks and safeguard their legitimate rights and interests in accordance with the law.

If you want to get the PDF version of ‘Private Sector Promotion Law of the People's Republic of China’, please click on the code to join the group, and @Small Assistant Guide can be obtained.

Special Announcement

This report is only the author team's own research results, does not represent any organisation, institution for the interpretation of relevant policies and regulations, practical issues or tendentious views. The contents of this report are for general reference only, and should not be regarded as legal advice or recommendations on specific matters and should not be relied upon, and should not be used as a basis for making or not making legal or commercial actions. The team of authors of this report shall not be liable for any loss arising from the use of this report or reliance on any of its information by the relevant enterprises, organisations and individuals.