China is set to implement its first-ever Private Sector Promotion Law, aiming to unlock the full potential of the private sector. Announced at a press conference held by the State Council Information Office on Thursday, the law will take effect on May 20.
Officials highlighted that the new legislation is expected to bolster the private sector, which has become a key driver of China’s economic growth. The private sector currently contributes to over 56 percent of foreign trade, more than 50 percent of fixed-asset investment and tax revenue, over 60 percent of GDP, more than 70 percent of technological innovations, and over 80 percent of urban employment. Remarkably, over 90 percent of all market entities in China are private enterprises.
By formalizing support for private businesses, the law aims to create a more favorable environment for entrepreneurship and innovation. Young entrepreneurs and startups stand to benefit, as the legislation is expected to enhance market access and provide stronger legal protections.
Analysts believe that the move signals China’s commitment to fostering economic growth by empowering its private sector. The law is anticipated to stimulate investment, drive technological advancement, and generate new job opportunities, particularly in urban areas.
