With the passage of a law designed to bolster China’s private economy, Beijing’s frequent shows of rhetorical support for businesses face a litmus test as the legislation is set to come into force on May 20.
“The new law has clear-cut provisions on curbing administrative powers,” said Rui Meng, an economics professor at the China Europe International Business School in Shanghai. “Thus, entrepreneurs can make better use of it in litigations, especially in legal cases against a local government.
“It’s also hoped that courts will be more willing to accept such cases and adjudicate them more fairly.”
The law forbids the use of administrative measures to intervene in economic disputes, as well as unscrupulous, profit-driven fine collections and asset seizures.
