How can private enterprises solve development problems after the implementation of the Private Economy Promotion Law? (IV)
2025 06/05
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.
In the previous article "How can private enterprises solve development problems under the 'Private Economy Promotion Law'? (III)", we once again experienced the role of the 'Private Economy Promotion Law' through three typical scenarios encountered by private enterprise owner Mr. Wang: the standardization of law enforcement in different places, the protection of law enforcement norms and enterprise operation guarantees, and the fair handling of economic disputes.
Today, let's talk about the last three typical scenarios.
Scenario 10: Response to arbitrary charges, fines, and levies
Mr. Wang's company has recently been charged some additional fees by local government departments. Mr. Wang believes that these fees have no legal basis and are a form of arbitrary charging behavior. He sought help from Lawyer Li.
Li Lv: Mr. Wang, if government departments charge or fine private enterprises without basis, or impose taxes on private enterprises, these all violate Article 61 of the Private Economy Promotion Law.
Mr. Wang: What should we do then?
Li Lv: Firstly, you can request the other party to provide legal basis and documents for the charges. If the other party is unable to provide or provides evidence that does not comply with legal regulations, we can report the situation to the relevant departments in accordance with Article 53 of the Private Economy Promotion Law and request them to investigate and handle it.
Mr. Wang: What specific materials do you need to prepare?
Li Lv: We can prepare a detailed complaint letter, listing the time, amount, charging unit, and reason for charging, and attach copies of relevant charging vouchers. At the same time, we can also collect similar situations from other companies and submit them as evidence.
Mr. Wang: Okay, Lawyer Li, could you please help us prepare the relevant materials.
Li Lv: In addition, we can also decide whether to initiate administrative reconsideration or administrative litigation based on the situation.
Legal Tips
Article 61 of the Law on the Promotion of Private Economy explicitly prohibits government departments from arbitrarily charging fees, imposing fines without legal basis on private enterprises, as well as prohibiting apportionment behavior. In addition, according to Articles 53 and 65 of the Law on the Promotion of the Private Economy, as well as Article 11 of the Administrative Reconsideration Law and Article 12 of the Administrative Litigation Law, private enterprises can file complaints and reports to relevant departments regarding the above-mentioned illegal activities of government departments, or apply for administrative reconsideration or initiate administrative litigation.
Scenario 11: Guarantee of payment for government departments, public institutions, and state-owned enterprises' accounts
Mr. Wang's company has been supplying goods to a state-owned enterprise for a long time, but the other party has delayed payment due to various reasons such as the fact that the final audit results have not yet been released. He also mentioned that if the payment amount agreed in the contract is different from the audit results, the audit results should be used for settlement. Mr. Wang felt very helpless about this and sought help from Lawyer Li.
Li Lv: Mr. Wang, according to Article 67 of the Law on the Promotion of Private Economy, government departments, public institutions, and state-owned enterprises must pay money to private enterprises on time when doing business with them. They cannot delay payment due to personnel changes, slow internal processes, or matters not mentioned in the contract. Moreover, unless otherwise stipulated by laws or administrative regulations, they cannot require audit results as the basis for settlement.
Mr. Wang: What should we do then?
Li Lv: You can send a reminder letter to the other party, requesting them to pay the account in a timely manner according to the contract agreement. If the other party still delays, we can file a lawsuit through legal means to demand payment of the account and overdue interest.
Mr. Wang: Okay, Lawyer Li. Could you please help us prepare the relevant materials and send a reminder letter to the other party first. If not, please prepare to sue.
Legal Tips
Article 67 of the Law on the Promotion of the Private Economy requires government departments, public institutions, and state-owned enterprises to pay their outstanding debts to private enterprises in a timely manner in accordance with the law and agreements.
Scenario 12: The Breakthrough of Large Enterprises Dragging Arrears
Mr. Wang's enterprise is a small and medium-sized private enterprise that supplies to a large enterprise. The contract stipulates that payment shall be made within 60 days after the goods are received and inspected. But it has been three months since the goods arrived, and the other party has delayed settlement on the grounds that they have not yet received payment from a third party, which has led to a tight financial chain for Mr. Wang's company. Mr. Wang then approached Lawyer Li to discuss countermeasures.
Mr. Wang: Lawyer Li, we have supplied goods to a large enterprise, and now the other party claims to only settle the account after receiving payment from a third party. Isn't this a disguised delay? We small businesses can't afford to delay!
Li Lu: You see, although the contract stipulates that receiving third-party payment is a prerequisite for payment, this violates Article 68 of the Private Economy Promotion Law and Article 9 of the Regulations on Ensuring Payment for Small and Medium sized Enterprises. The other party should make payment within the agreed period in the contract.
Mr. Wang: So how should we get the money back?
Li Lv: Firstly, we can send a lawyer's letter clearly stating that the other party has breached the contract, requesting payment of the account within a specified period and bearing overdue interest. If the other party ignores us, we can directly file a lawsuit with the court.
Mr. Wang: I heard that it takes a long time to file a lawsuit with a large enterprise. We can't afford it!
Li Lv: Mr. Wang, Article 68 of the Law on the Promotion of Private Economy also stipulates that the court should give priority to filing, hearing, and executing such cases. That is to say, the law has set up a green channel specifically for disputes over accounts of small and medium-sized private enterprises.
Mr. Wang: Then I'll listen to you. Hurry up and send a lawyer's letter! If they still don't pay, you can help us sue directly.
Legal Tips
Article 68 of the Law on the Promotion of Private Economy prohibits large enterprises from owing accounts to small and medium-sized private enterprises on the grounds of not receiving third-party payments. In addition, Article 9 of the "Regulations on Ensuring Payment for Small and Medium sized Enterprises (Revised in 2025)" and the "Reply of the Supreme People's Court on the Validity of the Agreement between Large Enterprises and Small and Medium sized Enterprises on Third Party Payment as a Prerequisite for Payment" also have similar provisions. Meanwhile, Article 68 of the Law on the Promotion of Private Economy also stipulates that the court shall promptly file, hear, and execute such cases.
Conclusion
The implementation of the Private Economy Promotion Law has brought unprecedented development opportunities and guarantees to private enterprises. With the help of lawyers, Mr. Wang's company successfully resolved issues such as financing difficulties, unequal competition, innovation difficulties, and legal disputes. This law not only protects the legitimate rights and interests of private enterprises, but also creates a favorable legal environment for the high-quality development of the private economy.
As private enterprises, we not only need to understand this law, but also learn to use legal weapons to safeguard our legitimate rights and interests. The intervention of professional lawyers can help you better understand and apply the law, develop reasonable business strategies, and avoid unnecessary legal risks.
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!
In the previous article "How can private enterprises solve development problems under the 'Private Economy Promotion Law'? (III)", we once again experienced the role of the 'Private Economy Promotion Law' through three typical scenarios encountered by private enterprise owner Mr. Wang: the standardization of law enforcement in different places, the protection of law enforcement norms and enterprise operation guarantees, and the fair handling of economic disputes.
Today, let's talk about the last three typical scenarios.
Scenario 10: Response to arbitrary charges, fines, and levies
Mr. Wang's company has recently been charged some additional fees by local government departments. Mr. Wang believes that these fees have no legal basis and are a form of arbitrary charging behavior. He sought help from Lawyer Li.
Li Lv: Mr. Wang, if government departments charge or fine private enterprises without basis, or impose taxes on private enterprises, these all violate Article 61 of the Private Economy Promotion Law.
Mr. Wang: What should we do then?
Li Lv: Firstly, you can request the other party to provide legal basis and documents for the charges. If the other party is unable to provide or provides evidence that does not comply with legal regulations, we can report the situation to the relevant departments in accordance with Article 53 of the Private Economy Promotion Law and request them to investigate and handle it.
Mr. Wang: What specific materials do you need to prepare?
Li Lv: We can prepare a detailed complaint letter, listing the time, amount, charging unit, and reason for charging, and attach copies of relevant charging vouchers. At the same time, we can also collect similar situations from other companies and submit them as evidence.
Mr. Wang: Okay, Lawyer Li, could you please help us prepare the relevant materials.
Li Lv: In addition, we can also decide whether to initiate administrative reconsideration or administrative litigation based on the situation.
Legal Tips
Article 61 of the Law on the Promotion of Private Economy explicitly prohibits government departments from arbitrarily charging fees, imposing fines without legal basis on private enterprises, as well as prohibiting apportionment behavior. In addition, according to Articles 53 and 65 of the Law on the Promotion of the Private Economy, as well as Article 11 of the Administrative Reconsideration Law and Article 12 of the Administrative Litigation Law, private enterprises can file complaints and reports to relevant departments regarding the above-mentioned illegal activities of government departments, or apply for administrative reconsideration or initiate administrative litigation.
Scenario 11: Guarantee of payment for government departments, public institutions, and state-owned enterprises' accounts
Mr. Wang's company has been supplying goods to a state-owned enterprise for a long time, but the other party has delayed payment due to various reasons such as the fact that the final audit results have not yet been released. He also mentioned that if the payment amount agreed in the contract is different from the audit results, the audit results should be used for settlement. Mr. Wang felt very helpless about this and sought help from Lawyer Li.
Li Lv: Mr. Wang, according to Article 67 of the Law on the Promotion of Private Economy, government departments, public institutions, and state-owned enterprises must pay money to private enterprises on time when doing business with them. They cannot delay payment due to personnel changes, slow internal processes, or matters not mentioned in the contract. Moreover, unless otherwise stipulated by laws or administrative regulations, they cannot require audit results as the basis for settlement.
Mr. Wang: What should we do then?
Li Lv: You can send a reminder letter to the other party, requesting them to pay the account in a timely manner according to the contract agreement. If the other party still delays, we can file a lawsuit through legal means to demand payment of the account and overdue interest.
Mr. Wang: Okay, Lawyer Li. Could you please help us prepare the relevant materials and send a reminder letter to the other party first. If not, please prepare to sue.
Legal Tips
Article 67 of the Law on the Promotion of the Private Economy requires government departments, public institutions, and state-owned enterprises to pay their outstanding debts to private enterprises in a timely manner in accordance with the law and agreements.
Scenario 12: The Breakthrough of Large Enterprises Dragging Arrears
Mr. Wang's enterprise is a small and medium-sized private enterprise that supplies to a large enterprise. The contract stipulates that payment shall be made within 60 days after the goods are received and inspected. But it has been three months since the goods arrived, and the other party has delayed settlement on the grounds that they have not yet received payment from a third party, which has led to a tight financial chain for Mr. Wang's company. Mr. Wang then approached Lawyer Li to discuss countermeasures.
Mr. Wang: Lawyer Li, we have supplied goods to a large enterprise, and now the other party claims to only settle the account after receiving payment from a third party. Isn't this a disguised delay? We small businesses can't afford to delay!
Li Lu: You see, although the contract stipulates that receiving third-party payment is a prerequisite for payment, this violates Article 68 of the Private Economy Promotion Law and Article 9 of the Regulations on Ensuring Payment for Small and Medium sized Enterprises. The other party should make payment within the agreed period in the contract.
Mr. Wang: So how should we get the money back?
Li Lv: Firstly, we can send a lawyer's letter clearly stating that the other party has breached the contract, requesting payment of the account within a specified period and bearing overdue interest. If the other party ignores us, we can directly file a lawsuit with the court.
Mr. Wang: I heard that it takes a long time to file a lawsuit with a large enterprise. We can't afford it!
Li Lv: Mr. Wang, Article 68 of the Law on the Promotion of Private Economy also stipulates that the court should give priority to filing, hearing, and executing such cases. That is to say, the law has set up a green channel specifically for disputes over accounts of small and medium-sized private enterprises.
Mr. Wang: Then I'll listen to you. Hurry up and send a lawyer's letter! If they still don't pay, you can help us sue directly.
Legal Tips
Article 68 of the Law on the Promotion of Private Economy prohibits large enterprises from owing accounts to small and medium-sized private enterprises on the grounds of not receiving third-party payments. In addition, Article 9 of the "Regulations on Ensuring Payment for Small and Medium sized Enterprises (Revised in 2025)" and the "Reply of the Supreme People's Court on the Validity of the Agreement between Large Enterprises and Small and Medium sized Enterprises on Third Party Payment as a Prerequisite for Payment" also have similar provisions. Meanwhile, Article 68 of the Law on the Promotion of Private Economy also stipulates that the court shall promptly file, hear, and execute such cases.
Conclusion
The implementation of the Private Economy Promotion Law has brought unprecedented development opportunities and guarantees to private enterprises. With the help of lawyers, Mr. Wang's company successfully resolved issues such as financing difficulties, unequal competition, innovation difficulties, and legal disputes. This law not only protects the legitimate rights and interests of private enterprises, but also creates a favorable legal environment for the high-quality development of the private economy.
As private enterprises, we not only need to understand this law, but also learn to use legal weapons to safeguard our legitimate rights and interests. The intervention of professional lawyers can help you better understand and apply the law, develop reasonable business strategies, and avoid unnecessary legal risks.
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!
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