China drafts new law to help develop private sector

An employee of an engine manufacturer works on a production line in Tangshan, Hebei province. [Photo provided to chinadaily.com.cn]

China has embarked on the formulation of a law aimed at promoting the development of the private sector, according to a legislative work symposium held on Wednesday.

The symposium, as reported by CCTV News, said China has started the work of drafting the law to support the development of the private sector, and the legislative process will be accelerated.

Hosted jointly by 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, the symposium said the legislative work will respond to the concerns of enterprises and address the weak links.

The key focus will be placed on protecting the private companies' property rights and the rights and interests of entrepreneurs in accordance with the law, ensuring their participation in market competition on a level playing field and equal access to factors of production following the law.

According to the meeting, the country aims to maintain consistency and stability in policy formulation and implementation with legal thinking and methods. It will stimulate the endogenous motivating power and vitality of various types of operating entities and promote the accelerated development of new productive forces.

During a recent news conference, Yuan Da, deputy secretary-general of the NDRC said: "the country is gearing up to take a series of practical measures to boost the growth of the private sector".

He said the commission will take more steps to effectively address the challenges faced by private businesses, boost business confidence and ensure tangible benefits.

According to the NDRC, the legal and institutional arrangements will be made to ensure the equal treatment of private and State-owned enterprises. More efforts will be made to better implement the existing supportive policies and encourage more private capital to participate in the construction of major projects at the national level and projects that address weak links in the economy.