(Source: "Chinese Social Sciences Journal" 2025-05-21)

On May 20, the "Private Economy Promotion Law" was officially implemented. As my country's first basic law specifically on the development of the private economy, this law actively responds to the concerns of private enterprises and makes targeted institutional arrangements. It is of great significance and far-reaching influence in promoting the high-quality development of the private economy. Our reporter invited many scholars in the fields of law and economics to provide in-depth interpretations of the significance of the formal implementation of the Private Economy Promotion Law. Scholars believe that this law establishes and improves relevant systems and mechanisms around fair competition, investment and financing promotion, technological innovation, standardized operations, service guarantees, and rights protection, and will continue to optimize a stable, fair, transparent, and predictable private economic development environment.

Improving the socialist legal system with Chinese characteristics

The private economy is an important part of the socialist market economy. According to statistics from the State Administration for Market Regulation, as of the end of March, there were more than 57 million registered private enterprises across the country, accounting for 92.3% of the total number of enterprises. Private enterprises can be called the "capillaries" of the Chinese economy and play an important role in absorbing social employment and promoting entrepreneurship and innovation.

For a long time, the relevant norms of my country's private economy have been scattered in the Civil Code of the People's Republic of China, the Company Law of the People's Republic of China, the Small and Medium-sized Enterprises Promotion Law of the People's Republic of China, and other laws and various policy documents. The content lacks systematicity and it is difficult to fundamentally eliminate the institutional obstacles that plague the development of the private economy. The Private Economy Promotion Law systematically integrates and fills the institutional gaps.

Foreign EconomyLiang Qinghua, Professor of Law w88 casino of University of w88believes that as an important supplement to the current civil and commercial law and economic law system, the Private Economy Promotion Law further promotes the standardization of the private economy under the framework of the rule of law. The legislation confirms the constitutional rights of the private economy and responds to the urgent need for high-quality development of the private economy by establishing multiple systems such as fair competition, financing support, and technological innovation. The implementation of this law is conducive to protecting the legitimate rights and interests of private economic organizations and their operators, especially in the relationship between private enterprises and state-owned enterprises. It helps to ensure the equal legal status of the two in the transaction relationship and realize the common development of the two in a competitive relationship. The law clarifies the role of state agencies and their staff in promoting the development of the private economy. Responsibilities and behavioral norms, further promote the government's ownership neutrality in the fields of market supervision, project procurement and bidding, and optimize the reasonable limits of government intervention in the market economy; this law forms stable system expectations and boosts enterprise development confidence by eliminating inequality in market access, making up for insufficient property rights protection, and promoting entrepreneurship.

The formulation and implementation of the "Private Economy Promotion Law" is a landmark event in the process of legalization of my country's private economy. Through the systematic construction of a normative system, it provides an institutional guarantee for the high-quality development of the private economy and demonstrates the deep innovation of the construction of the socialist rule of law with Chinese characteristics in the new era. Wu Shenkuo, a professor at Beijing Normal University Law w88 casino, believes that the primary significance of this law is to confirm the legal status of the private economy. At the legal level, the contemporary interpretation of the basic economic system has been achieved, especially within the framework of the Chinese-style modernization strategy, which has established the institutional dominant position of private enterprises. In terms of the construction of a legalized business environment, this law focuses on practical issues by building a systematic institutional framework covering market access, financing support, innovation incentives, market supervision and rights protection, and strives to eliminate hidden barriers that existed in the past to ensure that private enterprises have equal opportunities to participate in market competition. It is worth noting that this law innovatively incorporates the right to equality in market access, policy support and other aspects into the scope of legal protection, and effectively protects the legitimate interests of private enterprises through the reasonable allocation of rights and obligations. The promulgation of this law has promoted the continuous improvement of the socialist legal system with Chinese characteristics. This kind of legal empowerment not only enhances the endogenous power of the private economy, but also provides solid support for building a new development pattern.

Multiple paths stimulate the vitality of the private economy

As the first basic law specifically related to the development of the private economy, the "Private Economy Promotion Law" has created many "firsts": for the first time, it will "unswervingly consolidate and develop the public economy, and unswervingly encourage, support, and guide non-public economy" "Promoting the healthy development of the private economy and the healthy growth of private economic personnel" has been written into the law; for the first time, the legal status of the private economy has been clarified; for the first time, it has been clearly stipulated that promoting the sustainable, healthy and high-quality development of the private economy is a major policy that the country has long adhered to.

“These ‘firsts’ reflect the party and the country’s profound understanding and scientific judgment of the development laws of the private economy, and the systematic thinking and strategic deployment of promoting the sustainable, healthy and high-quality development of the private economy. They fully demonstrate the Party Central Committee’s firm determination to promote the development and growth of the private economy.” Researcher from the Institute of Industrial Economics, Chinese Academy of Social Sciences Researcher Xiao Hongjun told reporters that on the one hand, these "firsts" are conducive to building consensus and unified action, promoting the whole society to deeply understand the inevitability, necessity and direction of developing and strengthening the private economy, and unifying thoughts and actions to the Party Central Committee's decision-making and deployment of promoting high-quality development of the private economy, forming a powerful synergy for the whole society to jointly promote the development and growth of the private economy. On the other hand, these "firsts" can stabilize expectations, stimulate momentum, strengthen the confidence and belief of private enterprises and private entrepreneurs, and form a strong endogenous driving force for making enterprises stronger, better, and bigger.

The promulgation of the Private Economy Promotion Law established the principles of equal treatment, fair competition, equal protection and common development, comprehensively protected the legitimate rights and interests of private enterprises, and provided solid legal support for the development of the private economy. Yang Dong, Dean of the Law w88 casino of Renmin University of China, believes that private enterprises are a new force in high-quality development and an important pillar in creating jobs, innovating technology, improving people's livelihood, increasing finances and taxes, and stabilizing society. The key to the development of my country's private economy lies in small, medium and micro enterprises, and one of the focuses of my country's economic transformation and upgrading also lies in the development of small, medium and micro enterprises. The Private Economy Promotion Law provides legal protection for the development of small, medium and micro enterprises and can encourage small, medium and micro enterprises to actively embrace digitalization.

The "Private Economy Promotion Law" reflects the government's concern for private enterprises with many important breakthroughs and innovations. Chen Bing, deputy dean of Nankai University w88 casino of Law, believes that the "Private Economic Promotion Law" clarifies in the form of special legislation that private economic organizations enjoy equal legal status with other types of economic organizations, implements a national unified negative list system for market access, ensures that private economic organizations can participate in market competition fairly, and strives to break down the hidden barriers that have existed for a long time. In response to the difficulties and congestion problems of private enterprises' financing difficulties and expensive financing, a number of measures have been proposed to optimize the investment and financing environment, promote the establishment of a market-based sharing mechanism for financing risks of private economic organizations, and provide more powerful financial support for private enterprises. The law emphasizes scientific and technological innovation, supports private economic organizations to increase investment in research and development, strengthen research on key core technologies, promotes the formation of a technological innovation system with enterprises as the main body, market orientation, and deep integration of industry, academia and research, and enhances the independent innovation capabilities of private enterprises. This law strengthens service guarantees and rights protection, clearly requires governments at all levels in the form of legislation to improve service efficiency, build pro-Qing government-business relationships, protect the legitimate rights and interests of private economic organizations and their operators in accordance with the law, improve corporate rights protection and relief mechanisms, and enhance the sense of security and confidence of private entrepreneurs.

These breakthroughs and innovations reflect the country’s determination to adhere to and implement the “two unwavering principles”, create a stable, transparent, and predictable institutional environment for the private economy, stimulate market vitality, and promote high-quality economic development in our country. Chen Bing believes that this law comprehensively promotes the development and growth of the private economy and reflects the party and the country's consistent and firm support for the development of the private economy. At the same time, we adhere to the government service orientation, emphasize both supervision and services, and protect the legitimate rights and interests of private enterprises in accordance with the law. This law supports private enterprises to enhance their development momentum in scientific and technological innovation, encourages them to take the lead in undertaking major scientific research tasks, strengthens the integration of industry, academia and research, and key core technology research, reflecting the innovation-driven development orientation; supports the guarantee orientation, focuses on investment and financing problems, improves financial support mechanisms, and requires the improvement of corporate governance, promotion of standardized development, strengthening compliance management and integrity risk prevention and control, and improving the quality of enterprises' own development and risk resistance capabilities by promoting multi-level financial product innovation, improving risk-sharing mechanisms and other measures.

Promote the development of private economy into a new journey

Yuan Jia, director of the Innovation and Competition Law Research Center of Sichuan University Law w88 casino, suggested that first of all, attention should be paid to how to implement fair competition policies. Chapter 2 of the "Private Economy Promotion Law" comprehensively proposes various measures to ensure that private economic organizations can participate in market competition fairly, but it also relies on the improvement and implementation of laws and regulations such as the Anti-Monopoly Law of the People's Republic of China, the Anti-Unfair Competition Law of the People's Republic of China, and the Fair Competition Review Regulations. Currently, the Anti-Unfair Competition Law of the People's Republic of China is also being revised. If some provisions that are clearly conducive to ensuring that private enterprises can participate in market competition fairly will be added, it will also reflect the implementation of the Private Economy Promotion Law. Secondly, attention should be paid to ensuring that private economic organizations have fair access to financing opportunities and conditions. In the process of promoting the development of the private economy, the most prominent obstacle is that private enterprises generally have weak financing capabilities, and financial institutions have stricter and higher requirements for private enterprises. Chapter 3 of the "Private Economy Promotion Law" proposes to support the investment and financing of private enterprises, but this requirement needs to be implemented in the specific business development of various financial institutions, and truly fair treatment and response to the financing needs of private enterprises can further stimulate the vitality of the private economy. Finally, encourage the private economy to actively participate in scientific and technological innovation. At present, the innovative development strategy is an important breakthrough for my country's economic development. The private economy has unique advantages in innovation ability and willingness to innovate, and can carry out innovation in various industries and fields. In order to encourage private enterprises to innovate, it is also necessary to strengthen the protection of intellectual property achievements of private enterprises, provide support for private enterprises to carry out scientific research and development and innovation, and implement the requirements of the Private Economy Promotion Law.

Currently, our country is experiencing a key transition from factor-driven to innovation-driven, and from scale expansion to quality and efficiency improvement. The development of new fields such as the digital economy, green economy, and high-end manufacturing requires the innovation acumen and market adaptability of private enterprises to assist economic development. As a new production factor, data elements are not only the core driving force for improving total factor productivity, but also the key for private enterprises to break through existing difficulties and achieve development. Yang Dong believes that in terms of digital transformation of private enterprises, the theory of shared votes can be integrated to build a new paradigm of "interest-rights" dual symbiosis of data assetization, and activate the value of data elements through circulation and revenue sharing mechanisms. At the same time, the revenue voucher registration system can be used to achieve dynamic protection of the entire life cycle of data, thus promoting the transformation of the private economy from extensive growth to data-driven refined operations.

The implementation of the "Private Economy Promotion Law" marks a new stage in the legalization of my country's private economy. This law provides a solid guarantee for the private economy in many aspects and adds confidence and impetus to the development of private enterprises. It not only responds to the urgent needs of private economic development, but also demonstrates the country's great importance and firm support for the private economy.

Looking to the future, with the implementation of the Private Economy Promotion Law, the private economy will surely achieve high-quality development on the track of the rule of law. In the new era and new journey, private enterprises will rely on their institutional advantages to further stimulate innovation vitality, enhance development resilience, and contribute more to promoting China's economic transformation and upgrading and building a new development pattern.

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