China passes private sector law, addressing gripes of beleaguered businesses

China passed a much-anticipated law to shore up the country’s private economy on Wednesday, as Beijing delivers on its oft-repeated promise to protect and promote the non-state sector at a time when the Chinese economy looks to hinge more on domestic dynamism to ensure growth amid a trade war with the US.

The 78-article Private Economy Promotion Law was passed following its third reading by the Standing Committee of the National People’s Congress, China’s top legislature. It will come into force on May 20.

It stipulates measures to promote fair market competition; enhance the investment and financing environment; encourage private firms’ involvement in scientific projects and technological innovation; and also safeguard their economic rights and interests.