Private Economy Promotion Law (2025)

Stated objective

According to article 1 of the law; the NDRC adds that legal stability should give private firms certainty

Main measures

• Principles written into law: the « two unwavering » (consolidate the public sector, encourage, support and guide the non-public sector), promotion of the private economy as a long-term State policy, and equal legal status, market opportunities and development rights for private firms (articles 2 and 3).[1][12]
• Fair competition: a single nationwide negative list for market access (sectors outside it are open to all), fair-competition review of new policies, and no restriction or exclusion of private firms in tenders and public procurement; officials responsible for breaches can be sanctioned (articles 10, 11, 14 and 71).[1]
• Investment and finance: support for private participation in major national projects and infrastructure; equal treatment by financial institutions in lending, and liability for a bank that unilaterally tightens, suspends or recalls a loan against the contract; pledge loans on receivables, warehouse receipts, equity and intellectual property (articles 16 to 26).[1]
• Innovation: private firms may lead major national technology projects and use national research infrastructure; stronger intellectual-property protection, including punitive damages (articles 27 to 33).[1]
• Obligations of private firms: support the leadership of the Communist Party; Party organisations within firms carry out their activities under the Party Charter; compliance with labour, safety, environmental and tax law; employee representative congresses; separation of company and personal assets (articles 5, 34, 36, 38 and 40).[1]
• Administrative enforcement: random selection of inspected firms and inspectors outside high-risk sectors, merging of inspections, a complaints mechanism against unlawful enforcement, rules on credit punishment and credit repair; new rules with an effect on business must not apply retroactively and must leave an adjustment period (articles 45, 52 to 54).[1]
• Protection of rights: seizures, freezes and detentions only within legal limits, with company and personal assets kept apart; a clear line between economic disputes and economic crimes; a ban on using administrative or criminal means to interfere in economic disputes and on abusing enforcement in another region for economic gain (articles 60 to 64 and 72).[1]
• Payments and commitments: State bodies, public institutions and state-owned firms must pay private firms on time and may not invoke staff changes or pending audits to delay payment; large firms may not make payment to small private suppliers conditional on being paid by a third party; local governments may not break policy commitments or contracts because of reorganisations or changes of officials, and must compensate changes made in the public interest (articles 67 to 70 and 73).[1]
• Scope: « private economic organisations » are for-profit entities and individual businesses established in China and controlled by Chinese citizens, and the entities they control; foreign-investment law also applies where foreign investment is involved (article 77).[1]

Timeline

1. July 19, 2023

   Party and State Council opinions on « promoting the development and growth of the private economy »[6][7]

   The NDRC said many private firms faced problems and difficulties and that confidence needed to be restored; the opinions cover market access, financing, payment arrears and legal protection.

2. March 29, 2024Announced

   Ministry of Justice says it is speeding up the drafting of the law[4][3]

   The law is on the 2024 legislative plans of both the NPC Standing Committee and the State Council

3. July 18, 2024

   Third Plenum of the CPC Central Committee calls for the law[5]

   The plenum decision says: « draw up a private economy promotion law », alongside the removal of market-access barriers and a legal system for clearing arrears owed to companies.

4. October 10, 2024Under debate

   Draft published for public comment by the Ministry of Justice and the NDRC[8]

5. December 21, 2024

   First reading at the NPC Standing Committee[3][25]

   Minister of Justice He Rong presents the bill; the draft is then published in full on the NPC website for public comment.

6. February 17, 2025

   Xi Jinping chairs a symposium with private entrepreneurs[9][3]

   He says the basic policies of the Party and the State on the private economy « cannot change and will not change »; the heads of Huawei, BYD, New Hope, Will Semiconductor, Unitree and Xiaomi speak. The Constitution and Law Committee re-examined the draft on 19 February in light of the speech.

7. February 24, 2025

   Second reading at the NPC Standing Committee[3][25]

   Report of the Constitution and Law Committee on the amendments (14th session). The second draft was not published.

8. April 27, 2025

   Third reading at the NPC Standing Committee[3]

   The committee adds, among other things, the protection of workers’ rights and employee representative congresses; the law is voted on 30 April.

9. April 30, 2025Adopted

   Law adopted by the NPC Standing Committee[1][22]

10. May 8, 2025

    State Council Information Office press conference on the law[11][12]

    Ministry of Justice, NPC Legislative Affairs Commission, NDRC, financial regulator and Federation of Industry and Commerce present the law; the NDRC announces a campaign to clean up market-access barriers.

11. May 20, 2025In force

    Entry into force[1][11]

    Article 78: the law applies from 20 May 2025

12. May 20, 2025Current step

    Implementation: supporting rules, local regulations and clean-up of conflicting documents[16][17]

    The NPC Standing Committee had more than 1 400 normative documents amended or repealed in the first year; supporting rules on investment, financing and enforcement are still being issued.

13. June 1, 2025

    Revised regulation on payments to small and medium-sized enterprises in force[14][18]

    State bodies, public institutions and large companies may not impose unreasonable payment terms on SMEs; large companies must pay within 60 days of delivery.

14. November 2025

    State Council General Office issues 13 measures to further promote private investment[18]

    For railway, nuclear and similar projects submitted for national approval, private capital may hold more than 10 % where feasible.

15. May 20, 2026

    First anniversary: NDRC review of implementation[15][18]

    The NDRC reports more than 170 supporting measures, a market-access negative list cut to 106 items and 14 provinces with their own regulations or implementing rules.

The debate

Citoyen takes no position: arguments are reported as their authors put them.

Indicators to watch

• Private fixed-asset investment, change on a year earlier · National Bureau of Statisticsno Citoyen card yet
• Gross fixed capital formation (% of GDP) · World BankSee the card →
• Industrial output growth · National Bureau of StatisticsSee the card →
• Unemployment rate · National Bureau of StatisticsSee the card →
• 5-year Loan Prime Rate · CFETSSee the card →
• Items on the market-access negative list · NDRCno Citoyen card yet

Sources

1. [1]中华人民共和国民营经济促进法（2025年4月30日第十四届全国人民代表大会常务委员会第十五次会议通过） –中国政府网 (gov.cn), 新华社, April 30, 2025
2. [2]中华人民共和国民营经济促进法 –国家统计局 (National Bureau of Statistics), June 9, 2025
3. [3]全国人民代表大会常务委员会公报 2025·3：关于《中华人民共和国民营经济促进法（草案）》的说明及宪法和法律委员会的汇报、报告 –全国人民代表大会常务委员会公报 (copy of the Gazette hosted by NPC Observer), 2025
4. [4]加快推进民营经济促进法立法 废止煤炭送货办法等13部行政法规 –中国政府网 (gov.cn), 经济日报, March 30, 2024
5. [5]中共中央关于进一步全面深化改革 推进中国式现代化的决定 –中国政府网 (gov.cn), July 18, 2024
6. [6]中共中央 国务院关于促进民营经济发展壮大的意见 –中国政府网 (gov.cn), 新华社, July 19, 2023
7. [7]进一步激发民营经济发展活力：国家发展改革委有关负责人就《中共中央 国务院关于促进民营经济发展壮大的意见》答记者问 –中国政府网 (gov.cn), 新华社, July 20, 2023
8. [8]聚焦民营经济促进法草案征求意见稿四大看点 –中国政府网 (gov.cn), 新华社, October 10, 2024
9. [9]习近平在民营企业座谈会上强调：民营经济发展前景广阔大有可为 民营企业和民营企业家大显身手正当其时 –中国政府网 (gov.cn), 新华社, February 17, 2025
10. [10]国家发展改革委：制定颁布民营经济促进法凝聚信心、共识和力量 –中国政府网 (gov.cn), 新华社, April 30, 2025
11. [11]以法治之力促进民营经济高质量发展：国新办发布会聚焦民营经济促进法 –中国政府网 (gov.cn), 新华社, May 8, 2025
12. [12]创下多个“第一次”的民营经济促进法，有这些重要信息！ –中国政府网 (gov.cn), May 8, 2025
13. [13]国新办发布会聚焦民营经济促进法 以法治的稳定性增强发展的确定性 –中国政府网 (gov.cn), 人民日报, May 9, 2025
14. [14]修订后的《保障中小企业款项支付条例》6月1日起施行 –中国政府网 (gov.cn), 人民日报海外版, March 26, 2025
15. [15]民营经济促进法正式施行这一年 –国家发展和改革委员会 (NDRC), 中国发展改革报社, May 20, 2026
16. [16]以良法善治护航民营经济 –国家发展和改革委员会 (NDRC), 中国发展改革报社, May 20, 2026
17. [17]加快完善配套细则，打通民营经济促进法落地“最后一公里”（《中国改革报》2026年6月28日） –国家发展和改革委员会 (NDRC), 中国改革报, July 6, 2026
18. [18]“向上”之路：民营经济的“这一年”与“下一程”（《中国改革报》2026年6月24日） –国家发展和改革委员会 (NDRC), 中国改革报, July 6, 2026
19. [19]2024年全国固定资产投资增长3.2% –国家统计局 (National Bureau of Statistics), January 17, 2025
20. [20]2025年经济发展向新向优 预期目标圆满实现 –国家统计局 (National Bureau of Statistics), January 19, 2026
21. [21]2026年1–9月份全国固定资产投资基本情况 –国家统计局 (National Bureau of Statistics), October 19, 2026
22. [22]民营经济促进法表决通过 将于5月20日起施行 –新华网 (Xinhua), April 30, 2025 · secondary source
23. [23]让更多民间资本“敢投、能投、愿投”：民营经济促进法实施一周年观察 –新华网 (Xinhua), May 21, 2026 · secondary source
24. [24]Will China’s private economy promotion law reassure its private sector? (Jamie P. Horsley) –Brookings Institution, March 28, 2025 · secondary source
25. [25]China’s New Private Economy Promotion Law: Good Intentions Meet Weak Government Accountability (Jamie P. Horsley) –NPC Observer, May 15, 2025 · secondary source