Recently, the 15th meeting of the Standing Committee of the 14th National People's Congress voted to pass the "Private Economy Promotion Law of the People's Republic of China", which will come into effect on May 20, 2025. As China's first basic law specifically on the development of the private economy, what impact will the implementation of the Private Economy Promotion Law have on the development of the private economy? What specific measures will be taken to support the development of the private economy? On May 8, the State Council Information Office held a press conference to introduce the relevant situation.

  Enhance the certainty of development with the stability of the rule of law

  Zheng Bei, deputy director of the National Development and Reform Commission, said that the introduction of the Private Economy Promotion Law is of great significance and far-reaching impact on promoting the high-quality development of the private economy.

  ——Further stabilize expectations. The Private Economy Promotion Law clearly emphasizes that promoting the sustained, healthy and high-quality development of the private economy is a major policy that the country has long adhered to; it clearly emphasizes the basic principles of equal treatment, fair competition, equal protection and common development, which fully demonstrates the stability of the rule of law to enhance the certainty of development and is a "peace of mind" for private enterprises to seek development with peace of mind.

  ——Further strengthen confidence. The Private Economy Promotion Law actively responds to the concerns of private enterprises and makes targeted institutional arrangements. For example, in terms of fair participation in market competition, the law stipulates that the state implements a nationwide unified negative list system for market access, implements a fair competition review system, and ensures that "it is not prohibited or entered". In terms of equal use of production factors, the law stipulates that the state ensures that private economic organizations use funds, technology, human resources, data, land and other factors and public service resources equally in accordance with the law, so as to achieve "equal treatment".

  ——Further promote high-quality development. The Law on Promotion of Private Economy is based on the present and looks at the long-term, providing strong legal guarantees for the high-quality development of the private economy. On the one hand, focus on encouragement and support. For example, special chapters such as "Investment and Financing Promotion" and "Technology Innovation" are set up to support private enterprises to participate in major national strategies and major projects, invest and start businesses in strategic emerging industries, future industries and other fields, and encourage active roles in promoting scientific and technological innovation, cultivating new quality productivity, and building a modern industrial system. On the other hand, focus on guiding norms. Guide private enterprises to improve their governance structure and management systems, abide by the law and operate well, strengthen risk prevention, fulfill social responsibilities, and promote the healthy development of the private economy and the healthy growth of private economic personnel.

  Provide targeted and professional financial services

  The Private Economy Promotion Law puts forward clear requirements on supporting private economic organizations to participate in scientific and technological innovation and major national strategies. What specific measures will be implemented in this regard?

  Cong Lin, deputy director of the State Administration for Financial Supervision and Administration, introduced that for private enterprises in key areas and key links, they will focus on "one industry, one policy", based on the characteristics of the industry and industry, and provide targeted and professional financial services.

  "In the high-tech and emerging industries where private enterprises have performed well in recent years, we have focused on improving the technology and financial service model." Jun Lin introduced that in terms of promoting the integration of investment and financing, an equity investment pilot for financial asset investment companies is being carried out to support investment in technology innovation enterprises. 74 private equity investment funds have been established. In addition, technology enterprise mergers and acquisition loans have been implemented in 18 pilot cities to support technology enterprises to smooth the capital circulation.

  In terms of innovating credit enhancement methods, the State Administration for Financial Supervision and Administration has promoted the construction of an intellectual property financial ecological comprehensive pilot zone, optimized the registration, evaluation, disposal, compensation and other related policies of intellectual property rights, and helped intellectual property pledge financing. It has jointly issued a guarantee plan to support science and technology innovation with the financial department to provide special guarantees for loans to small and medium-sized enterprises such as science and technology, high-tech, and specialized and innovative. "By the end of the first quarter of this year, the national loan balance of high-tech enterprises was 17.7 trillion yuan, an increase of 20% year-on-year." Junlin said.

  In the foreign trade and consumption fields, mainly small and medium-sized private enterprises, the State Administration for Financial Regulation has listed the foreign trade sector in the small and micro financing coordination mechanism, comprehensively sorted out the list of foreign trade enterprises, and given priority visits and docking financing. In addition, short-term export credit insurance is used to support export trade. The insured amount in the first quarter of this year has exceeded US$240 billion. Some industries that play an important supporting role in foreign trade, such as electronic information, modern chemical industry, complete vehicle engineering machinery, etc., have increased significantly.

  Help private enterprises burst into more innovative vitality

  Zheng Bei said that in order to implement the legal requirements, the National Development and Reform Commission will work with relevant departments to strengthen measures from three aspects: breaking barriers, expanding space and optimizing services.

  "Recently, we have jointly released a new negative list for market access with relevant departments, and the list has been further shortened; we have carried out action to clean up and rectify market access barriers, and concentrated rectification will be promoted normally after half a year; we actively promote private enterprises to participate in bidding and bidding fairly. From January to April this year, the winning rate of private enterprises increased by 5 percentage points year-on-year. For projects with less than 100 million yuan, the number of projects won by private enterprises accounted for more than 80%. "Zheng Bei said.

  According to reports, the National Development and Reform Commission supports private enterprises to actively participate in the construction of "two-fold" and "two-new" work, and is accelerating the improvement of a long-term mechanism for private enterprises to participate in the construction of major national projects. It has launched a number of major projects in the fields of nuclear power, railways, etc. At present, the proportion of private capital in some nuclear power projects has reached 20%, and the proportion of funds supported by private enterprises in the fields of industrial equipment renewal, recycling and utilization exceeds 80%. "This year, we will also launch high-quality projects with a total investment scale of about 3 trillion yuan in key areas such as transportation, energy, water conservancy, new infrastructure, and urban infrastructure." Zheng Bei said, "We will continue to strengthen factor guarantees, improve factors and fund guarantee mechanisms for promoting land for private investment, environmental impact assessment and other factors, optimize incentives and service measures for private enterprises to introduce and cultivate high-level talents, support private enterprises to participate in the construction of the data factor market, participate in the formulation of standards, strengthen intellectual property protection, improve the social credit system, and improve the credit restoration system, and help private enterprises burst out with more innovative vitality." (Kong Dechen)

[Editor in charge: Zhang Qiaosu]