China’s newly passed private sector law bans “profit-driven” enforcement that unfairly targets the non-state sector, according to the full text of the legislation, underscoring Beijing’s determination to rein in local authorities and allay private entrepreneurs’ concerns as the country faces increasing economic pressure at home and abroad.
Compared with the initial draft released last year, the final version of the 78-article Private Economy Promotion Law adds more weight to addressing long-standing complaints about cross-regional enforcement and includes specially added clauses to reinforce accountability for officials directly responsible for failures to comply with the law.
Analysts said the key focuses of the new law are the regulation of administrative acts and the limitation of administrative powers, adding that clauses outlining a clear accountability mechanism helped give the new law “teeth”.
Tang Dajie, a senior researcher with the China Enterprise Institute think tank in Beijing, said: “The new law dedicated to the private sector may help businesses better defend their interests, including taking local government to court if they think their rights have been encroached upon.”
A post on the Ministry of Justice’s WeChat account hailed the enactment of the law at a critical moment as having far-reaching historical significance.
“External risks and challenges are becoming increasingly complex,” the state-owned Legal Daily said in an opinion piece posted on the ministry’s account on Thursday.
