On April 30, 2025, the Private Economy Promotion Law was officially released and implemented on May 20, 2025. The promulgation of this law has brought unprecedented development opportunities and guarantees for private enterprises, and injected strong impetus into the high-quality development of the private economy.

Starting today, we will divide into four articles to explore how this law safeguards the private economy and how professional lawyers assist businesses in overcoming challenges through twelve typical scenarios encountered by private enterprise owner Mr. Wang in their business operations.

Scenario 1: Solving Financing Difficulties

Mr. Wang's enterprise has developed rapidly in recent years and urgently needs funds to expand production scale, especially to increase research and development investment in high-tech fields. However, the difficulty and high cost of financing have always been a problem that troubles him. Mr. Wang contacted Lawyer Li, who is familiar with the Private Economy Promotion Law, to inquire.

Mr. Wang: Lawyer Li, the bank loan limit is limited and the procedures are complicated. What should we do?

Li Lv: Mr. Wang, don't worry. According to Articles 16 and 17 of the Law on the Promotion of Private Economy, the state encourages private enterprises to participate in major national projects and requires banks and other financial institutions to provide more flexible and convenient loan services for private enterprises, especially for those engaged in high-tech and emerging industries, to help them more easily obtain money for development.

Mr. Wang: So how can our company enjoy these policies?

Li Lv: Firstly, the State Administration of Financial Supervision and Administration is conducting a pilot program for equity investment in financial asset investment companies to support investment in technology innovation enterprises. We can pay attention to these pilot projects and strive to obtain equity investment support. Secondly, the General Administration is promoting the construction of a comprehensive experimental zone for intellectual property finance ecology, optimizing policies related to the registration, evaluation, disposal, and compensation of intellectual property, and helping private enterprises to engage in intellectual property pledge financing. If our company has relevant intellectual property rights, we can consider obtaining funds through pledge financing.

In addition, the State Administration of Financial Supervision and Administration of China and the finance department jointly issued a guarantee plan to support scientific and technological innovation, providing special guarantees for loans to small and medium-sized enterprises such as technology-based, high-tech, specialized, refined, and new enterprises; At the same time, the above two departments have also promoted the establishment of a nationwide government financing guarantee system, mainly serving small and micro enterprises, with guarantee rates not exceeding 1%. If our company meets these conditions, we can apply for a secured loan to reduce financing costs.

Mr. Wang: That's great! Our company has many patented technologies that meet the requirements of a high-tech enterprise. You can try using these to pledge loans or apply for guaranteed loans.

Li Lv: In addition, the State Administration of Financial Supervision and Administration also supports the transformation of scientific and technological achievements, and has launched two insurance compensation pilot projects for the first or first set of major technological equipment and the first batch of key new materials applications. If our company has relevant technology transfer projects, we can also consider applying for insurance compensation support.

Mr. Wang: Lawyer Li, with these policy supports, our company's financing difficulties should be solved.

Legal Tips

Chapter Three of the Law on the Promotion of Private Economy provides various financing support for private enterprises, and the State Administration of Financial Supervision and Administration has also introduced a series of policies and measures, including equity investment pilot programs for financial asset investment companies, intellectual property pledge financing, technology innovation guarantee plans, government financing guarantee systems, etc., to help enterprises solve financing difficulties.

Scenario 2: Coping with Unequal Competition

Mr. Wang's company found itself excluded from participating in a government procurement project and unable to bid.

Mr. Wang: Lawyer Li, we are clearly more competitive, but we have always been excluded. This is so unfair!

Li Lv: Mr. Wang, according to Articles 10 and 11 of the Law on the Promotion of Private Economy, private enterprises are allowed to enter without restriction, and are treated equally. Governments and departments at all levels should implement a fair competition review system to ensure that private enterprises participate in market competition fairly. The National Development and Reform Commission has also clearly stated that it will support private enterprises to participate fairly in bidding and tendering, and promote their fair participation in market competition.

What should we do, Mr. Wang?

Li Lv: We can report to the market supervision and management department, as well as report to the National Development and Reform Commission, and demand that they handle it in accordance with the law. According to Article 15, anti-monopoly and anti unfair competition law enforcement agencies will handle acts of abuse of administrative power to exclude or restrict competition in accordance with the law. At the same time, we can also protect our legitimate rights and interests through legal means.

Mr. Wang: Okay, Lawyer Li. Could you please help us prepare the relevant materials and report the situation to the regulatory authorities.

Legal Tips

Chapter 2 "Fair Competition" of the Private Economy Promotion Law provides equal protection for private enterprises to participate in market competition, and explicitly requires governments at all levels and relevant departments to implement a fair competition review system to ensure that private enterprises enjoy equal rights in market access, factor acquisition, and other aspects.

Scenario 3: Support for Innovative Development

Mr. Wang's company has always been committed to technological innovation, but problems such as high research and development costs and difficulty in market promotion have put a lot of pressure on him.

Mr. Wang: Lawyer Li, our company recently wants to increase research and development investment, but the cost of innovation is high and there are difficulties in market promotion. What should we do?

Li Lv: Mr. Wang, Article 27 of the Private Economy Promotion Law encourages private enterprises to conduct basic and cutting-edge research, develop core technologies, and support shared scientific research platforms. The State Administration of Financial Supervision and Administration has also issued policies, such as allowing financial institutions to invest in technology companies to help them develop.

Mr. Wang: What help can our company get from it?

Li Lv: We can apply to participate in national scientific and technological research projects and strive for government research funding support. Meanwhile, according to Article 30, the state provides services and conveniences in scientific research infrastructure, technology verification, standard specifications, quality certification, inspection and testing, intellectual property rights, and other aspects for private enterprises.

In addition, the State Administration of Financial Supervision and Administration is promoting the construction of a comprehensive experimental zone for intellectual property financial ecology to assist private enterprises in intellectual property pledge financing.

Mr. Wang: That's great. We can utilize these resources to enhance our research and development capabilities and market competitiveness.

Legal Tips

Chapter 4 of the Private Economy Promotion Law provides comprehensive support for the innovative development of private enterprises, including but not limited to research project funding, intellectual property protection, and innovation achievement transformation, to help enterprises enhance their core competitiveness.

conclusion

The above are the first to third scenarios. For more exciting content, let's break it down next time. Stay tuned!

If you encounter any problems in your business process, please feel free to consult a professional lawyer at any time. We will provide you with comprehensive legal services to help your enterprise develop!