On February 17,2025,the Central Government held a symposium on private enterprises.This is not only an affirmation of the private economy but also points out the direction for its development.At the same time,the Law on the Promotion of the Private Economy(Draft)(hereinafter referred to as the"Draft"),which has received much attention from all sectors of society,has recently completed its second review.The Draft has made many pioneering and targeted provisions addressing the numerous practical pain points faced by private enterprises.In the legislative history of China,this is the first time there is a basic legislation specifically aimed at promoting the private economy.For private enterprises,which account for 92.3%of the total number of enterprises in the country(source:statistical data of the National People's Congress website in 2023),what practical problems can the Law on the Promotion of the Private Economy solve for them in the future?How should private enterprises understand and apply this law to safeguard their own development?We can conduct an in-depth interpretation of the key contents of the Draft to explore the above questions in advance.

Keyword 1:Rectifying the Name

"When the name is not correct,what is said will not sound reasonable."

In real economic life,private enterprises are often treated differently and even looked down upon.This prejudice is an important root cause of the unfair treatment suffered by private enterprises.To this end,starting from the top-level design,the Draft rectifies the name of private enterprises,clearly defining them as the vanguard force of Chinese-style modernization and an important foundation for high-quality development.On this basis,the Draft further stipulates equal treatment,encouragement,promotion,and protection of the rights and interests of private enterprises,laying the foundation for the development of the private economy.

Keyword 2:Equality

The"equality"in the Draft is reflected in many aspects:

Equal Market Access

Private enterprises can freely enter all fields except those listed in the negative list of market access announced by the state.

Equal Policy Measures

Government departments shall not formulate or implement discriminatory policy measures against private enterprises,covering various aspects such as government fund arrangements,land supply,pollution discharge indicators,opening of public data,and qualification licenses.

Equal Access to Public Resource Transactions

Private enterprises shall not be restricted or excluded from activities such as bidding and government procurement.

Equal Financial Services

Financial institutions shall treat private enterprises equally in terms of credit granting,credit management,risk control management,and service fees.They shall not unilaterally terminate the loan issuance in breach of contract or recall the loan in advance(commonly known as"withdrawing loans").

Keyword 3:Investment and Financing

In the field of investment and financing,the Draft provides a lot of support for private enterprises:

It is clearly stated that the investment fields of private enterprises will be broadened,including national major strategies and projects,strategic emerging industries,public-private partnership projects,etc.Government departments at all levels will provide convenience for this.

For mortgage loans and loans secured by pledges of accounts receivable,warehouse receipts,equity,intellectual property rights,etc.,financial institutions and government departments will provide support and convenience.

Support private enterprises in conducting direct financing through means such as issuing stocks and bonds to broaden their financing channels.

Keyword 4:Scientific and Technological Innovation

In terms of scientific and technological innovation,the Draft provides a broad space for the development of private enterprises:

It is clearly stated that private enterprises can participate in national scientific and technological research projects.Support will be given to capable private economic organizations to take the lead in undertaking major technological research tasks,and national major scientific research infrastructure will be opened to them.

Strengthen the protection of intellectual property rights,severely crack down on infringement acts,create a good innovation environment for private enterprises,and help private enterprises develop steadily in the field of scientific and technological innovation.

Keyword 5:Protection

In response to the many problems of damaged rights and interests faced by private enterprises in reality,the Draft has made targeted provisions:

It is prohibited to use channels such as the Internet to infringe upon the legitimate rights and interests of private enterprises,such as reputation,honor,privacy,and personal information.

When government departments conduct law enforcement,investigations,or request assistance in investigations of private enterprises,they should avoid affecting their normal operations and shall not restrict personal freedom at will.

It is prohibited to use administrative or criminal means to interfere in economic disputes.

The conditions for law enforcement in different places are clearly defined to avoid private entrepreneurs from being"fished from afar"(Note:That is,the act of conducting improper investigations or punishments of private entrepreneurs through cross-regional and unwarranted law enforcement).

For the illegal acts of private enterprises,the punishment should be commensurate with the fault.

Private enterprises are allowed to carry out credit restoration to create conditions for them to restore market reputation and normal operations.

Government departments,public institutions,state-owned enterprises,large enterprises and other entities are required to pay the outstanding accounts owed to private enterprises in a timely manner in accordance with laws and agreements,and shall not delay or refuse to pay on the grounds of personnel changes,internal processes,or non-receipt of payments from third parties.

In the second draft of the Draft,it is newly added that random charging and fines without legal basis are prohibited,as well as the act of apportioning.

In the second draft of the Draft,it is also newly added that for multiple inspection items of the same inspection object,they should be combined as much as possible or included in the scope of cross-departmental joint inspections.

Conclusion

From the above keywords and specific provisions,the Draft has proposed practical solutions to the many pain points faced by private enterprises,reflecting the legislative concept of"being practical and relevant to reality".At the same time,we should also see that although the Draft provides support and guarantees for private enterprises in many aspects,the Draft is more of a set of principled provisions.In the future,more detailed implementation rules need to be formulated on this basis to better protect the interests of private enterprises and ensure that the legal guarantees are effectively implemented.