China's Zhejiang passes law to protect private companies

China's Zhejiang province has a new law to protect private companies.

The local legislature on Jan 16 passed the first provincial law in China aimed at promoting the development of private companies.

The law contains seven chapters, and has specific items regarding equal market access, financing environment and policy implementation.

The law greatly boosted morale among private entrepreneurs, said Cai Farong, a deputy to the provincial people's congress.

"The law will provide comprehensive and authoritative aid for private companies in Zhejiang in the future," said local legal expert Lyu Xinwei.

Private companies play an important part in the eastern province's economy. In 2018, the private sector generated 65.5 percent of the gross domestic product in Zhejiang.