Private Sector Promotion Law of the People's Republic of China

Order of the President of the People's Republic of China
(No. 46)

The Private Sector Promotion Law of the People's Republic of China, adopted at the 15th Session of the Standing Committee of the Fourteenth National People's Congress of the People's Republic of China on April 30, 2025, is hereby issued and shall come into force on May 20, 2025.

Xi Jinping, President of the People's Republic of China
April 30, 2025

Private Sector Promotion Law of the People's Republic of China
(Adopted at the 15th Session of the Standing Committee of the Fourteenth National People's Congress of the People's Republic of China on April 30, 2025)

Table of Contents
Chapter I General Provisions
Chapter II Fair Competition
Chapter III Investment and Financing Promotion
Chapter IV Technological Innovation
Chapter V Well-regulated Operation
Chapter VI Services
Chapter VII Protection of Rights and Interests
Chapter VIII Legal Liability
Chapter IX Supplementary Provisions
Chapter I General Provisions
Article 1 This Law is enacted in accordance with the Constitution for the purposes of optimizing the development environment for the private sector, ensuring the fair participation of various economic organizations in market competition, promoting the sound development of the private sector and persons in the sector, building a high-standard socialist market economy, and leveraging the important role of the private sector in the national economy and social development.
Article 2 The promotion of the development of the private sector shall adhere to the leadership of the Communist Party of China (CPC), the people-centered approach, and the socialist system with Chinese characteristics, so as to ensure the correct political direction of the development of the private sector.
The state upholds and improves the fundamental socialist economic systems, including the system under which public ownership is the mainstay and diverse forms of ownership develop together, the system under which distribution according to work is the mainstay, while multiple forms of distribution exist alongside it, and the socialist market economic system; it unswervingly consolidates and develops the public sector and unswervingly encourages, supports, and guides the development of the non-public sector; it sees that the market plays the decisive role in resource allocation and that the government better fulfills its role.
Article 3 The private sector is an important part of the socialist market economy, a vital contingent for promoting Chinese modernization, a significant foundation for high-quality development, and a principal force for promoting the development of China into a great modern socialist country in all respects and the rejuvenation of the Chinese nation. Promoting the sustainable, sound, and high-quality development of the private sector is a crucial principle and policy that the state has long upheld.
The state is committed to encouraging, supporting, and guiding the development of the private sector in accordance with the law and ensures that the role of the rule of law better plays its role in consolidating the foundation, stabilizing expectations, and bringing long-term benefits.
According to the principles of equal treatment, fair competition, equal protection, and common development, the state promotes the development of the private sector. Private economic organizations enjoy a legal status, market opportunities, and development rights on an equal footing with other types of economic organizations.
Article 4 The State Council and local people's governments at or above the county level shall incorporate the promotion of the development of the private sector into their national economic and social development plans, establish a promotion coordination mechanism, formulate and improve policies and measures, and coordinate the resolution of major issues in the development of the private sector.
The development and reform department of the State Council is responsible for coordinating the promotion. Other relevant departments of the State Council are responsible for work related to the promotion within their respective purview.
The relevant departments of local people's governments at or above the county level shall promote the development of the private sector in accordance with laws, regulations, and the division of responsibilities determined by the people's governments at the same level.
Article 5 Private economic organizations and their operators shall uphold the leadership of the CPC, adhere to the socialist system with Chinese characteristics, and actively devote themselves to building a great modern socialist country.
The state improves the contingent of operators of private economic organizations, strengthens theoretical and political guidance, and ensure their important role in economic and social development. The state fosters and promotes entrepreneurship and guides operators of private economic organizations in practicing patriotism, dedication and other core socialist values, being committed to compliance, lawful operations, entrepreneurship, and innovation, contributing to society, and being unswervingly dedicated to socialism with Chinese characteristics and Chinese modernization.
Article 6 Private economic organizations and their operators shall abide by laws and regulations, observe social and business ethics, be honest and trustworthy, compete fairly, fulfill their social responsibilities, protect the lawful rights and interests of workers, safeguard the national interest and public interest, and submit to government and public supervision.
Article 7 Federations of industry and commerce shall play an important role in promoting the sound development of the private sector and persons in the sector, strengthen theoretical and political education for operators of private economic organizations, guide private economic organizations in operating in accordance with the law, and improve the level of service to the private sector.
Article 8 The public awareness of the innovation, creation, and other outstanding deeds of private economic organizations and their operators shall be strengthened, private economic organizations and their operators shall be supported in participating in selection and commendation, efforts shall be made to guide the creation of a social environment that respects work, creativity, and entrepreneurs, and an atmosphere that cares for, supports, and promotes the development of the private sector shall be created.
Article 9 The state establishes and improves a statistical system for the private sector to conduct statistical analysis of its development and publish relevant information on a regular basis.
Chapter II Fair Competition
Article 10 The state implements a nationwide unified negative list system for market access. Any field not on the negative list for market access may be entered by various economic organizations, including private economic organizations, lawfully and equally.
Article 11 People's governments at all levels and their relevant departments shall implement the fair competition review system by subjecting the formulation of policies and measures pertaining the production and operation activities of businesses to fair competition review, and regularly assess, promptly overhaul, and repeal policies and measures that contain obstacles to the national unified market and fair competition, so as to ensure that private economic organizations participate fairly in market competition.
Market regulatory departments are responsible for accepting reports on violations of policies and measures under the fair competition review system and handling them in accordance with the law.
Article 12 The state ensures that private economic organizations have lawful and equal access to various factors of production and public service resources such as funds, technology, human resources, data, land, and other natural resources and are equally eligible for the state's policy on support for development according to the law.
Article 13 People's governments at all levels and their relevant departments shall, in accordance with their statutory powers, treat private economic organizations equally when formulating and implementing policies and measures in areas such as government funding arrangements, land supply, pollution emission targets, public data openness, qualification licensing, standard setting, project application, professional title evaluation, merit evaluation, and human resources.
Article 14 Public resource trading activities shall be open, transparent, fair, and just, and lawfully, equally treat various economic organizations, including private economic organizations.
Unless otherwise provided by law, public resource trading such as solicitation, bidding, and government procurement shall not restrict or exclude private economic organizations.
Article 15 Anti-monopoly and anti-unfair competition law enforcement agencies shall, within their purview and powers, prevent and stop monopolistic and unfair competition practices in market economic activities, lawfully handle abuse of administrative power to preclude or restrict competition, and create a market environment for private economic organizations.
Chapter III Investment and Financing Promotion
Article 16 Private economic organizations are support in participating in major national strategies and projects. They are supported in investment and entrepreneurship in strategic emerging industries, future industries, and other fields and encouraged to improve technologies in and transform and upgrade traditional industries and participate in the investment in and construction of modern infrastructure.
Article 17 The relevant departments of the State Council shall, based on major national development strategies, development plans, and industrial policies, among others, coordinate research on and formulation of policies and measures to promote investment from the private sector, release information on major projects in which the private sector is encouraged to invest, and guide it in investing in key fields.
If a private economic organization invests in and constructs a fixed asset investment project that is in the national strategic direction, it enjoys the national support policy in accordance with the law.
Article 18 Private economic organizations are supported in releasing the value of idle assets through various means, improving their reinvestment capability, and enhancing asset quality and benefits.
People's governments at all levels and their relevant departments shall support private economic organizations in participate in government and social capital cooperation projects. Public-private partnership projects shall reasonably define the rights and obligations of both parties and specify matters such as methods for obtaining investment returns, the risk sharing mechanism, and dispute resolution methods.
Article 19 People's governments at all levels and their relevant departments shall provide well-regulated, efficient and convenient services for the investment of private economic organizations in project promotion and connection, preliminary work, handling of construction applications and approval matters, acquisition of factors of production, government investment support, and other aspects.
Article 20 The relevant departments of the State Council shall, within their purview, ensure the incentive and constraint role of monetary policy instruments and macro-credit policies, implement differentiated policies on financial institutions' financial services to micro and small private economic organizations through market-oriented, law-based means, urge and direct financial institutions to reasonably set tolerance levels for non-performing loans, establish and improve a due diligence-based exemption mechanism, and enhance their professional service capabilities, and improve the capability to provide financial services to private economic organizations.
Article 21 Banking institutions, among others, shall, in accordance with laws and regulations, accept security that meets the needs of loan business, and make loans secured by pledged rights such as accounts receivable, warehouse receipts, equities, and intellectual property rights to private economic organizations.
People's governments at all levels and their relevant departments shall provide support and convenience for the registration, valuation, trading, circulation, and information sharing of movable property and rights pledges.
Article 22 The state promotes the establishment and improvement of a market-based sharing mechanism for private economic organizations' financing risks and supports banking institutions and financing guarantee institutions in expanding business cooperation in an orderly manner to serve private economic organizations.
Article 23 Financial institutions shall, subject to laws and regulations, develop and provide financial products and services suitable for the characteristics of the private sector in accordance with the principles of market orientation and sustainable development, facilitate the financing of private economic organizations of good credit standing, enhance the match between credit supply and loan cycle on one side and the financing needs of private economic organizations and capital utilization cycle on the other, and improve the availability and accessibility of financial services.
Article 24 Financial institutions shall equally treat private economic organizations in credit granting, credit management, risk control management, charges for service, and other aspects.
A financial institution that violates the agreement with a private economic organization borrower by unilaterally increasing lending conditions and discontinuing the disbursement of a loan or accelerating the loan shall be held liable for breach of contract in accordance with the law.
Article 25 The multi-tiered capital market system shall b......