Reuters
BEIJING, April 30 (Reuters) – China on Wednesday passed a new law aimed at boosting confidence in the private sector and strengthening its role in the economy amid heightened trade tensions with the United States.
The Private Economy Promotion Law was approved by China’s top legislature, state news agency Xinhua reported.
The Reuters Tariff Watch newsletter is your daily guide to the latest global trade and tariff news. Sign up here.
The private sector is “a vital force in advancing Chinese-style modernization, a key foundation for high-quality development, and an important force in building China into a modern socialist power and realising the great rejuvenation of the Chinese nation,” Xinhua cited the law as saying.
It said the legislation, to take effect on May 20, will ensure fair market competition and promote the growth of both the private economy and private entrepreneurs.
The law reaffirms Beijing’s “two unswervingly” stance – to unswervingly consolidate and develop the public sector and to unswervingly encourage, support and guide the development of the non-public sector, according to Xinhua.
China will implement a system for market access, under which all types of economic entities, including private firms, will be able to enter the market on an equal footing, Xinhua reported.
The government has in recent months unveiled a raft of measures, opens new tab to support the depressed private firms and the economy, which has been reeling from weak domestic consumption and a destabilising debt crisis in the property sector.
Such moves signal a shift in Beijing’s approach to its tech giants and a departure from a regulatory clampdown four years ago.
Read full report
