China Passes Private Economy Promotion Law
Complete Text and Key Changes in the Final Version
Today, the 15th Meeting of the Standing Committee of the 14th National People's Congress passed the Private Economy Promotion Law, which will come into effect on May 20.
This legislative process proceeded at an unusually rapid pace. Convention typically dictates that a new draft law is not deliberated in consecutive meetings of the Standing Committee; however, the Private Economy Promotion Law broke tradition by being considered at three consecutive sessions—the 13th, 14th, and 15th meetings.
I’ve quickly read the latest version and compared it with the first draft. Here are some points of change:
Financing for Private Enterprises:
Article 23 requires the enhancement of "accessibility and convenience" of financial services.
Article 24 explicitly prohibits financial institutions from "unilaterally adding loan issuance conditions."
Enterprise Management:
Article 38 adds the requirement to "establish and improve a democratic management system based on the employee representative assembly in accordance with the law" (I believe this may indicate an approach to strengthen labor protection for enterprise employees by enhancing their voice within the company).
Restrictions on Administrative Law Enforcement:
Article 50 requires law enforcement inspections to "avoid or minimize" impact on normal production and business activities.
Article 52 adds that "for multiple inspection items targeting the same inspection object, they should be combined as much as possible or incorporated into cross-departmental joint inspection."
Article 71 emphasizes the refinement of administrative responsibility, changing "disciplinary actions shall be taken according to law" to "disciplinary actions shall be taken against responsible leaders and directly responsible personnel according to law."
Protection of Enterprise Property:
Article 61, Paragraph 3 adds: "No entity shall collect fees from private economic organizations in violation of laws and regulations, impose fines without legal or regulatory basis, or apportion financial burdens to private economic organizations."
Article 64 adds: "It is prohibited to abuse power for economic interests or other purposes to implement cross-jurisdictional law enforcement" (referring to so-called "deep-sea fishing" style law enforcement, which Chinese private entrepreneurs have complained about multiple times in recent years).
Judicial Protection:
Article 63 adds the requirement to "comply with legal provisions regarding the statute of limitations for prosecution" when handling cases. Additionally, it expands the circumstances under which criminal liability should not be pursued, emphasizing that "in cases where facts are unclear, evidence is insufficient, or criminal responsibility should not be pursued according to law, the case shall be dismissed, prosecution shall not be initiated, trial shall be terminated, or the defendant shall be declared not guilty."
Below is the full text I translated. Please point out if there are mistakes
Chinese Ver: https://www.xhby.net/content/s6811f570e4b0b996a0a17781.html
Law of the People's Republic of China on Promoting the Private Economy
(Adopted at the 15th Meeting of the Standing Committee of the 14th National People's Congress on April 30, 2025)
Table of Contents
Chapter I General Provisions
Chapter II Fair Competition
Chapter III Investment and Financing Promotion
Chapter IV Scientific and Technological Innovation
Chapter V Standardized Operations
Chapter VI Service and Support
Chapter VII Protection of Rights and Interests
Chapter VIII Legal Liability
Chapter IX Supplementary Provisions
Chapter I General Provisions
Article 1 This Law is formulated in accordance with the Constitution for the purposes of optimizing the development environment for the private economy, ensuring fair market competition among various economic organizations, promoting the healthy development of the private economy and the healthy growth of private economy entrepreneurs, establishing a high-level socialist market economy system, and leveraging the important role of the private economy in national economic and social development.
Article 2 Work to promote the development of the private economy shall adhere to the leadership of the Communist Party of China, uphold the people-centered approach, adhere to the socialist system with Chinese characteristics, and ensure the correct political direction for the development of the private economy.
The State shall uphold and improve the basic socialist economic systems, including the system under which public ownership is the mainstay while diverse forms of ownership develop together, the system under which distribution according to work is the mainstay while multiple forms of distribution exist side by side, and the socialist market economy system; unswervingly consolidate and develop the public sector of the economy, and unswervingly encourage, support, and guide the development of the non-public sector of the economy; give full play to the decisive role of the market in resource allocation while better leveraging the role of the government.
Article 3 The private economy is an important component of the socialist market economy, a vital force in advancing Chinese modernization, an important foundation for high-quality development, and an important force for building China into a strong modernized socialist country in all respects and realizing the great rejuvenation of the Chinese nation. Promoting the sustained, healthy, and high-quality development of the private economy is a major policy that the State will adhere to in the long term.
The State shall, in accordance with the law, encourage, support, and guide the development of the private economy, and better leverage the role of the rule of law in providing guarantees that lay a solid foundation, ensure expectations, and deliver long-term benefits.
The State shall adhere to the principles of equal treatment, fair competition, equal protection, and common development to promote the growth and strength of the private economy. Private economic organizations shall enjoy equal legal status, market opportunities, and development rights 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 work of promoting the development of the private economy into national economic and social development plans, establish coordination mechanisms for promoting the development of the private economy, formulate and improve policy measures, and coordinate the resolution of major issues in the development of the private economy.
The development and reform department of the State Council shall be responsible for the overall coordination of work to promote the development of the private economy. Other relevant departments of the State Council shall be responsible for relevant work to promote the development of the private economy within their respective responsibilities.
Relevant departments of local people's governments at or above the county level shall carry out work to promote the development of the private economy in accordance with laws, regulations, and the division of responsibilities determined by the people's government at the same level.
Article 5 Private economic organizations and their operators shall support the leadership of the Communist Party of China, adhere to the socialist system with Chinese characteristics, and actively participate in the construction of a strong modernized socialist country.
The State shall strengthen the development of the talent pool of private economic organizations, strengthen political guidance, and leverage their important roles in economic and social development; cultivate and promote the entrepreneurial spirit, guide operators of private economic organizations to practice socialist core values, be patriotic and dedicated, operate in compliance with the law, engage in entrepreneurship and innovation, give back to society, and firmly be builders of socialism with Chinese characteristics and promoters of Chinese modernization.
Article 6 Private economic organizations and their operators shall, in their production and business activities, abide by laws and regulations, observe social morality and business ethics, act with integrity and honesty, compete fairly, fulfill social responsibilities, protect the legitimate rights and interests of workers, safeguard national interests and social public interests, and accept government and social supervision.
Article 7 The All-China Federation of Industry and Commerce shall play an important role in promoting the healthy development of the private economy and the healthy growth of private economy entrepreneurs, strengthen the ideological and political development of operators of private economic organizations, guide private economic organizations to operate in accordance with the law, and improve the level of service to the private economy.
Article 8 Efforts shall be made to strengthen publicity and reporting on the innovative achievements and other outstanding deeds of private economic organizations and their operators, support private economic organizations and their operators in participating in selection and commendation activities, guide the formation of a social environment that respects labor, respects creativity, and respects entrepreneurs, and create an atmosphere where the whole society cares about, supports, and promotes the development of the private economy.
Article 9 The State shall establish and improve a statistical system for the private economy, conduct statistical analysis of the development of the private economy, and regularly release relevant information.
Chapter II Fair Competition
Article 10 The State shall implement a nationwide unified negative list system for market access. In areas outside the negative list for market access, various economic organizations, including private economic organizations, may enter the market equally in accordance with the law.
Article 11 People's governments at all levels and their relevant departments shall implement the fair competition review system. Policy measures formulated that involve the production and business activities of market entities shall undergo fair competition review and be evaluated regularly, and policy measures that contain content hindering the unified national market and fair competition shall be promptly cleaned up and abolished to ensure that private economic organizations participate fairly in market competition.
Market supervision and administration departments shall be responsible for accepting and handling reports of policy measures that violate the fair competition review system in accordance with the law.
Article 12 The State shall ensure that private economic organizations have equal access under the law to funds, technology, human resources, data, land and other natural resources, and public service resources, and are equally entitled to national development support policies in accordance with the law.
Article 13 People's governments at all levels and their relevant departments shall, within their statutory authority, treat private economic organizations equally when formulating and implementing policy measures regarding government fund arrangements, land supply, pollution discharge indicators, public data disclosure, qualification licensing, standard setting, project applications, professional title evaluations, awards and recognition, human resources, and other matters.
Article 14 Public resource transactions shall be open, transparent, fair, and impartial, and shall treat all types of economic organizations, including private economic organizations, equally in accordance with the law.
Unless otherwise provided by law, public resource transactions such as bidding and government procurement shall not restrict or exclude private economic organizations.
Article 15 Anti-monopoly and anti-unfair competition enforcement agencies shall, according to their duties and authority, prevent and stop monopolistic and unfair competition behaviors in market economic activities, handle acts of abusing administrative power to exclude or restrict competition in accordance with the law, and provide a good market environment for private economic organizations.
Chapter III Investment and Financing Promotion
Article 16 Support shall be provided for private economic organizations to participate in major national strategies and major projects. Support shall be provided for private economic organizations to invest and start businesses in strategic emerging industries, future industries, and other fields, and they shall be encouraged to carry out technological transformation and upgrading of traditional industries and participate in the investment and construction of modernized infrastructure.
Article 17 Relevant departments of the State Council shall, based on major national development strategies, development plans, industrial policies, etc., comprehensively research and formulate policy measures to promote private economy investment, release information on major projects that encourage private economy investment, and guide private economy investment in key areas.
Private economic organizations that invest in fixed asset investment projects in line with national strategic directions shall enjoy national support policies in accordance with the law.
Article 18 Support shall be provided for private economic organizations to revitalize existing assets through various means, enhance reinvestment capabilities, and improve asset quality and efficiency.
People's governments at all levels and their relevant departments shall support private economic organizations in participating in government and social capital cooperation projects. Government and social capital cooperation projects shall reasonably set the rights and obligations of both parties, and clearly specify the methods for obtaining investment returns, risk-sharing mechanisms, dispute resolution methods, and other matters.
Article 19 People's governments at all levels and their relevant departments shall provide standardized, efficient, and convenient services for private economic organizations' investments in terms of project promotion and matchmaking, preliminary work and approval processes, access to production factors, and government investment support.
Article 20 Relevant departments of the State Council shall, in accordance with their duties, leverage the incentive and constraint role of monetary policy tools and macro-credit policies, implement differentiated policies for financial institutions to provide financial services to small and micro private economic organizations in accordance with market-oriented and rule of law principles, and supervise and guide financial institutions to reasonably set tolerance levels for non-performing loans, establish and improve due diligence exemption mechanisms, enhance professional service capabilities, and improve the level of financial services provided to private economic organizations.
Article 21 Banking financial institutions and others shall, in accordance with laws and regulations, accept guarantee methods that meet the requirements of loan business, and provide loans secured by accounts receivable, warehouse receipts, equity, intellectual property rights, and other rights pledges 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 shall promote the construction of a perfect market-oriented mechanism for sharing financing risks of private economic organizations, and support banking financial institutions in orderly expanding business cooperation with financing guarantee institutions to jointly serve private economic organizations.
Article 23 Financial institutions shall, under the premise of compliance with laws and regulations and in accordance with the principles of marketization and sustainable development, develop and provide financial products and services suitable for the characteristics of the private economy, provide convenient conditions for financing to private economic organizations with good credit, enhance the compatibility of credit supply, loan cycles with the financing needs and capital use cycles of private economic organizations, and improve the accessibility and convenience of financial services.
Article 24 Financial institutions shall treat private economic organizations equally in credit authorization, credit management, risk control management, service charges, and other aspects.
Financial institutions that violate agreements with private economic organization borrowers by unilaterally increasing loan issuance conditions, suspending loan issuance, or recalling loans in advance shall bear liability for breach of contract in accordance with the law.
Article 25 A multi-level capital market system shall be established and improved to support qualified private economic organizations in obtaining direct financing equally through the issuance of stocks, bonds, and other means.
Article 26 A mechanism for collecting and sharing credit information shall be established and improved, credit investigation agencies shall be supported in providing credit investigation services for private economic organizations' financing, credit rating agencies shall be supported in optimizing the rating methods for private economic organizations, the effective supply of credit ratings shall be increased, and convenience shall be provided for private economic organizations to obtain financing.
Chapter IV Scientific and Technological Innovation
Article 27 The State shall encourage and support private economic organizations to play an active role in promoting scientific and technological innovation, cultivating new quality productive forces, and building a modern industrial system. Private economic organizations shall be guided to strengthen basic and frontier research according to national strategic needs, industry development trends, and global scientific and technological frontiers, develop key core technologies, common basic technologies, and frontier cross-disciplinary technologies, promote the integration of scientific and technological innovation and industrial innovation, and catalyze new industries, new models, and new drivers.
Non-profit foundations shall be guided to legally fund private economic organizations in conducting basic research, frontier technology research, and socially beneficial technology research.
Article 28 Support shall be provided for private economic organizations to participate in national science and technology research projects, for capable private economic organizations to take the lead in undertaking major national technological research tasks, for national major scientific research infrastructure to be open to private economic organizations, for public research and development platforms and common technology platforms to be open and shared, for equal services to be provided to private economic organizations for technological innovation, and for various enterprises, institutions of higher learning, scientific research institutions, and vocational schools to be encouraged to create innovative cooperation mechanisms with private economic organizations, carry out technical exchanges and achievement transfer and transformation, and promote in-depth integration of industry, academia, and research.
Article 29 Support shall be provided for private economic organizations to legally participate in the research and development of common technologies for digitalization and intelligence and in the construction of the data factor market, to use data legally and reasonably, to legally develop and utilize open public data resources, to enhance the sharing, inclusiveness, and security of data factors, and to fully leverage the enabling role of data.
Article 30 The State shall ensure that private economic organizations participate in standard-setting work in accordance with the law, and strengthen information disclosure and social supervision in standard-setting.
The State shall provide private economic organizations with services and convenience in terms of scientific research infrastructure, technology verification, standards and norms, quality certification, inspection and testing, intellectual property rights, demonstration applications, and other aspects.
Article 31 Support shall be provided for private economic organizations to strengthen the application of new technologies, carry out application experiments for new technologies, new products, new services, and new models, leverage the role of technology markets and intermediary service institutions, and promote the application and popularization of scientific and technological achievements through various means.
Private economic organizations shall be encouraged to voluntarily engage in technological cooperation based on commercial rules during the investment process. The conditions for technological cooperation shall be determined through negotiation among the investment parties following the principle of fairness.
Article 32 Private economic organizations shall be encouraged to actively cultivate and utilize knowledge-based, skilled, and innovative talents, and cultivate and utilize highly skilled talents in key positions and key processes to promote the development of the industrial workforce.
Article 33 The State shall strengthen the protection of original innovations by private economic organizations and their operators. The protection of intellectual property rights for innovation achievements shall be strengthened, a punitive damages system for intellectual property infringement shall be implemented, and illegal acts such as infringement of trademark rights, patent rights, copyrights, trade secrets, and counterfeit confusion shall be investigated and dealt with in accordance with the law.
Regional and departmental collaboration for intellectual property protection shall be strengthened to provide private economic organizations with rapid collaborative protection of intellectual property rights, diverse dispute resolution, rights protection assistance, guidance on responding to overseas intellectual property disputes, and risk early warning services.
Chapter V Standardized Operations
Article 34 Communist Party organizations and Party members in private economic organizations shall carry out Party activities in accordance with the Constitution of the Communist Party of China and relevant intra-Party regulations, and leverage the political leadership role of Party organizations and the exemplary role of Party members in promoting the healthy development of private economic organizations.
Article 35 Private economic organizations shall focus on the overall situation of national work and actively play their roles in developing the economy, expanding employment, improving people's livelihoods, and promoting scientific and technological innovation, contributing to meeting the people's growing needs for a better life.
Article 36 Private economic organizations shall, in their production and business activities, comply with laws and regulations concerning labor employment, work safety, occupational health, social security, ecological environment, quality standards, intellectual property rights, network and data security, fiscal and taxation, finance, and other aspects; they shall not seek illegitimate interests through bribery, fraud, or other means, nor shall they disrupt market and financial order, damage the ecological environment, harm the legitimate rights and interests of workers, or compromise social public interests.
State organs shall supervise and manage the production and business activities of private economic organizations in accordance with the law.
Article 37 Support shall be provided for private capital to serve economic and social development, institutional rules for capital behavior shall be improved, private capital shall be regulated and guided to develop in a healthy manner in accordance with the law, and the socialist market economic order and social public interests shall be safeguarded. Support shall be provided for private economic organizations to strengthen risk prevention and management, and private economic organizations shall be encouraged to excel in their main business, strengthen their real economy operations, and enhance their core competitiveness.
Article 38 Private economic organizations shall improve their governance structure and management systems, regulate the behavior of operators, strengthen internal supervision, and achieve standardized governance; they shall establish and improve democratic management systems with workers' congresses as the basic form in accordance with the law. Private economic organizations with suitable conditions shall be encouraged to establish and improve a modern enterprise system with Chinese characteristics.
Trade unions and other mass organizations in private economic organizations shall carry out activities in accordance with laws and charters, strengthen the ideological and political guidance of workers, safeguard the legitimate rights and interests of workers, play their role in the democratic management of enterprises, promote the improvement of enterprise wage collective negotiation systems, and facilitate the construction of harmonious labor relations.
The organizational forms, organizational structures, and activity principles of private economic organizations shall be subject to the provisions of the Company Law of the People's Republic of China, the Partnership Enterprise Law of the People's Republic of China, the Individual Proprietorship Enterprise Law of the People's Republic of China, and other laws.
Article 39 The State shall promote the construction of a system and mechanism for private economic organizations to prevent and control corruption at the source, support and guide private economic organizations in establishing and improving internal audit systems, strengthen corruption risk prevention and control, promote private economic organizations in enhancing their level of legal compliance in operations and management, and promptly prevent, discover, and address issues of illegal operations and other problems.
Private economic organizations shall strengthen legal education for their staff and create a cultural atmosphere of integrity, honesty, and compliance with laws and regulations.
Article 40 Private economic organizations shall, in accordance with laws, administrative regulations, and the national unified accounting system, strengthen financial management, standardize accounting, prevent financial fraud, and distinguish between the income and expenditure of private economic organizations' operations and those of the private economic organizations' operators as individuals, achieving separation of the property of private economic organizations from the personal property of their operators.
Article 41 Support shall be provided for private economic organizations to promote employee sharing of development results through strengthening skills training, expanding employment, and improving wage distribution systems.
Article 42 Exploration shall be undertaken to establish a social responsibility evaluation system and incentive mechanism for private economic organizations, and private economic organizations shall be encouraged and guided to actively fulfill their social responsibilities and voluntarily participate in public welfare, charity, emergency disaster relief, and other activities.
Article 43 Private economic organizations and their operators shall, when investing and operating overseas, comply with the laws of the countries or regions where they are located, respect local customs and cultural traditions, uphold the national image, and shall not engage in activities that harm national security and national interests.
Chapter VI Service and Support
Article 44 State organs and their staff shall diligently perform their duties in accordance with the law in promoting the development of the private economy. Staff of state organs shall observe discipline and law and maintain integrity and honesty in their work interactions with operators of private economic organizations.
People's governments at all levels and their relevant departments shall establish smooth and effective government-enterprise communication mechanisms, promptly listen to the opinions and suggestions of various economic organizations, including private economic organizations, and resolve reasonable issues they raise.
Article 45 When state organs formulate laws, regulations, rules, and other normative documents closely related to the production and business activities of market entities, or when the Supreme People's Court and the Supreme People's Procuratorate make interpretations concerning the specific application of laws in judicial and procuratorial work, or make major decisions, they shall focus on listening to the opinions and suggestions of various economic organizations, including private economic organizations, and industry associations and chambers of commerce; they shall leave a necessary adaptation and adjustment period before implementation based on actual circumstances.
In accordance with the provisions of the Legislation Law of the People's Republic of China, laws, regulations, rules, and other normative documents closely related to the production and business activities of market entities, as well as interpretations concerning the specific application of laws in judicial and procuratorial work, shall not be retroactive, except for special provisions made to better protect the rights and interests of citizens, legal persons, and other organizations.
Article 46 People's governments at all levels and their relevant departments shall promptly disclose to the public the scope, standards, conditions, and application procedures for preferential policies related to market entities, and provide convenience for private economic organizations to apply for and enjoy relevant preferential policies.
Article 47 People's governments at all levels and their relevant departments shall formulate policies to encourage entrepreneurship by private economic organizations, provide public services, and encourage entrepreneurship to drive employment.
Article 48 Registration authorities shall provide various economic organizations, including private economic organizations, with establishment, change, cancellation, and other registration services that are legally compliant, standardized, open, transparent, convenient, and efficient, reducing the costs of market entry and exit.
Individual industrial and commercial households may voluntarily transform into enterprises in accordance with the law. Registration authorities, tax authorities, and relevant departments shall provide guidance and convenience for individual industrial and commercial households to transform into enterprises.
Article 49 Institutions of higher learning, scientific research institutions, vocational schools, public training bases, and various vocational skills training institutions shall be encouraged and supported to innovate talent cultivation models, strengthen vocational education and training, and cultivate professional talents and industrial workers that meet the needs of high-quality development of the private economy. resources and social security departments shall establish and improve human resources service mechanisms, build platforms for matching employment and job-seeking information, and provide convenience for private economic organizations in recruiting workers.
People's governments at all levels and their relevant departments shall improve talent incentive and service guarantee policies and measures, smooth the channels for professional title evaluation in private economic organizations, and provide support for private economic organizations to introduce and cultivate high-level and scarce talents.
Article 50 Administrative organs shall adhere to administration according to law. Administrative organs carrying out law enforcement activities shall avoid or minimize the impact on the normal production and business activities of private economic organizations, and shall promptly respond to and handle their reasonable and lawful demands.
Article 51 Administrative penalties for illegal acts by private economic organizations and their operators shall be implemented on the same principles as for other economic organizations and their operators. When administrative penalties or other measures need to be implemented for illegal acts in accordance with the law, they shall be commensurate with the facts, nature, circumstances, and degree of social harm of the illegal acts. If the illegal act has circumstances that warrant lighter, reduced, or no punishment as specified in the Administrative Penalty Law of the People's Republic of China, the penalties shall be made lighter, reduced, or not imposed in accordance with its provisions.
Article 52 People's governments at all levels and their relevant departments shall promote the sharing and mutual recognition of regulatory information, implement classified and categorized supervision based on the credit status of private economic organizations, and enhance regulatory efficiency.
Except for special industries and key areas directly related to public safety and the lives and health of the people, where full coverage key supervision is implemented in accordance with laws and regulations, administrative inspections by relevant market supervision departments shall be conducted through random selection of inspection objects and random assignment of enforcement inspectors, and inspection items and handling results shall be promptly disclosed to the public. For multiple inspection items targeting the same inspection object, efforts shall be made to merge them or include them in the scope of cross-departmental joint inspections where possible.
Article 53 People's governments at all levels and their relevant departments shall establish and improve mechanisms for handling complaints and reports of illegal administrative enforcement behaviors, promptly accept and handle complaints and reports in accordance with the law, and protect the legitimate rights and interests of private economic organizations and their operators.
Judicial administrative departments shall establish communication mechanisms for administrative enforcement demands related to enterprises, organize administrative enforcement inspections, strengthen supervision of administrative enforcement activities, and promptly correct improper administrative enforcement behaviors.
Article 54 A credit punishment and credit restoration system shall be improved. The implementation of credit punishment shall be in accordance with laws, regulations, and relevant provisions, and appropriate punishment measures shall be adopted based on the facts, nature, and severity of the dishonest behavior.
Private economic organizations and their operators who have corrected dishonest behaviors, eliminated adverse effects, and meet the conditions for credit restoration may apply for credit restoration. Relevant state organs shall promptly lift punishment measures, remove or terminate the disclosure of dishonest information in accordance with the law, and achieve collaborative restoration on relevant public credit information platforms.
Article 55 A diversified mechanism for resolving contradictions and disputes shall be established and improved to provide convenience for private economic organizations to safeguard their legitimate rights and interests.
Judicial administrative departments shall organize and coordinate lawyers, notaries, judicial appraisers, grassroots legal service providers, people's mediators, commercial mediators, arbitrators, and other relevant institutions and legal consultation experts to participate in the resolution of disputes involving private economic organizations and provide targeted legal services for private economic organizations.
Article 56 Relevant industry associations and chambers of commerce shall, in accordance with laws, regulations, and charters, play a coordinating and self-regulatory role, promptly reflect industry demands, and provide services to private economic organizations and their operators in terms of information consultation, publicity and training, market expansion, rights protection, dispute resolution, and other aspects.
Article 57 The State shall adhere to high-level opening up, accelerate the construction of a new development pattern with domestic circulation as the mainstay and domestic and international circulation reinforcing each other; support and guide private economic organizations to expand international exchanges and cooperation, and to legally and compliantly carry out investment, business, and other activities overseas; strengthen comprehensive overseas services such as legal, financial, and logistics services, improve mechanisms for safeguarding overseas interests, and protect the legitimate rights and interests of private economic organizations and their operators overseas.
Chapter VII Protection of Rights and Interests
Article 58 The personal rights, property rights, operational autonomy, and other legitimate rights and interests of private economic organizations and their operators are protected by law, and no unit or individual may infringe upon them.
Article 59 The name rights, reputation rights, and honor rights of private economic organizations, as well as the reputation rights, honor rights, privacy rights, personal information, and other personality rights of operators of private economic organizations are protected by law.
No unit or individual shall use the internet or other communication channels to maliciously infringe upon the personality rights of private economic organizations and their operators through insult, defamation, or other means. Network service providers shall, in accordance with relevant laws and regulations, strengthen the management of network information content, establish and improve complaint and reporting mechanisms, promptly handle illegal information that maliciously infringes upon the legitimate rights and interests of the parties concerned, and report to relevant competent authorities.
Private economic organizations and their operators whose personality rights have been maliciously infringed upon have the right to apply to the people's court for measures to order the perpetrator to cease relevant behaviors. If the malicious infringement of personality rights causes actual losses to private economic organizations' production, operation, investment, financing, and other activities, the infringer shall bear liability for compensation in accordance with the law.
Article 60 State organs and their staff shall, when conducting investigations or requesting assistance in investigations in accordance with the law, avoid or minimize the impact on normal production and business activities. The implementation of coercive measures restricting personal freedom shall be strictly in accordance with statutory authority, conditions, and procedures.
Article 61 Expropriation or requisition of property shall be strictly in accordance with statutory authority, conditions, and procedures.
Where property is expropriated or requisitioned for public interest needs in accordance with the provisions of law, fair and reasonable compensation shall be provided.
No unit shall collect fees from private economic organizations in violation of laws and regulations, impose fines without legal or regulatory basis, or apportion financial burdens to private economic organizations.
Article 62 The sealing up, seizure, or freezing of property involved in cases shall comply with statutory authority, conditions, and procedures, with strict distinction between illegal gains, other property involved in the case, and legal property; between the property of private economic organizations and the personal property of their operators; and between the property of persons involved in the case and the property of persons not involved in the case. Property shall not be sealed up, seized, or frozen beyond the scope of authority, beyond the scope, beyond the amount, or beyond the time limit. Property that has been sealed up or seized shall be properly kept.
Article 63 When handling cases, a strict distinction shall be made between economic disputes and economic crimes, and the legal provisions regarding the limitation period for prosecution shall be observed; production and business activities that do not violate the provisions of criminal law shall not be punished as crimes; where the facts are unclear, evidence is insufficient, or criminal liability should not be pursued in accordance with the law, the case shall be dismissed, no prosecution shall be filed, the trial shall be terminated, or the defendant shall be declared not guilty in accordance with the law.
It is prohibited to illegally intervene in economic disputes by administrative or criminal means.
Article 64 Cross-regional law enforcement behaviors shall be regulated, and a system for assisting cross-regional law enforcement shall be established and improved. When handling cases that require cross-regional law enforcement, statutory authority, conditions, and procedures shall be followed. When state organs have disputes over case jurisdiction, they may consult with each other, and if consultation fails, they may request a decision from their common superior authority, unless otherwise provided by law.
It is prohibited to abuse power for economic interests or other purposes to implement cross-regional law enforcement.
Article 65 Private economic organizations and their operators may, if they have objections to whether their production and business activities are illegal or to coercive measures implemented by state organs, report situations and make appeals to relevant authorities in accordance with the law, and apply for administrative reconsideration or file lawsuits in accordance with the law.
Article 66 Procuratorial organs shall, in accordance with the law, exercise legal supervision over litigation activities involving private economic organizations and their operators, and promptly accept and review relevant appeals and accusations. If illegal circumstances are found, they shall file protests, issue rectification opinions, or make procuratorial suggestions in accordance with the law.
Article 67 State organs, public institutions, and state-owned enterprises shall promptly pay accounts to private economic organizations in accordance with the law or contractual agreements, and shall not refuse or delay payment of accounts to private economic organizations on the grounds of personnel changes, internal payment process compliance, or, in the absence of contractual agreements, waiting for completion acceptance approval, final account audits, etc.; except as otherwise provided by laws or administrative regulations, they shall not forcibly require audit results as the basis for settlement.
Audit organs shall, in accordance with the law, conduct audit supervision over the payment of accounts to private economic organizations by state organs, public institutions, and state-owned enterprises.
Article 68 Large enterprises that purchase goods, works, services, etc., from small and medium-sized private economic organizations shall reasonably stipulate payment terms and pay accounts in a timely manner, and shall not make payment from a third party a condition for paying accounts to small and medium-sized private economic organizations.
People's courts shall, in accordance with the law, promptly file, hear, and execute cases involving arrears to small and medium-sized private economic organizations, and may mediate according to the principles of voluntariness and legality to protect the legitimate rights and interests of small and medium-sized private economic organizations.
Article 69 Local people's governments at or above the county level shall strengthen account payment guarantee work, prevent and clear arrears to private economic organizations; strengthen budget management, with government procurement projects strictly executed according to approved budgets; strengthen overall guidance on the disposal of arrears, encourage all parties to resolve disputes through consultation for those with disagreements, and organize consultation and mediation for those with major differences. Consultation and mediation shall leverage the role of organizations such as the All-China Federation of Industry and Commerce and the Bar Association.
Article 70 Local people's governments at all levels and their relevant departments shall fulfill policy commitments made to private economic organizations in accordance with the law and contracts entered into with private economic organizations, and shall not breach or repudiate contracts on the grounds of administrative division adjustments, government changes, institutional or functional adjustments, or changes in relevant personnel.
Where policy commitments or contractual agreements need to be changed due to national interests or social public interests, this shall be done in accordance with statutory authority and procedures, and compensation shall be provided for losses suffered by private economic organizations as a result.
Chapter VIII Legal Liability
Article 71 Whoever violates the provisions of this Law and has one of the following circumstances shall be ordered to make corrections by the competent authority, and if harmful consequences or impacts are caused, the responsible leaders and directly responsible personnel shall be given disciplinary sanctions in accordance with the law:
(1) Issuing policy measures without fair competition review or that fail to pass fair competition review;
(2) Restricting or excluding private economic organizations in bidding, government procurement, and other public resource transactions.
Article 72 Whoever implements expropriation, requisition, sealing up, seizure, freezing, or other measures in violation of legal provisions shall be ordered to make corrections by the competent authority, and if losses are caused, compensation shall be made in accordance with the law; if harmful consequences or impacts are caused, the responsible leaders and directly responsible personnel shall be given disciplinary sanctions in accordance with the law.
Whoever implements cross-regional law enforcement in violation of legal provisions shall be ordered to make corrections by the competent authority, and if harmful consequences or impacts are caused, the responsible leaders and directly responsible personnel shall be given disciplinary sanctions in accordance with the law.
Article 73 State organs, public institutions, and state-owned enterprises that refuse or delay payment of accounts to private economic organizations in violation of laws, administrative regulations, or contractual agreements, and local people's governments at all levels and their relevant departments that do not fulfill policy commitments made to private economic organizations in accordance with the law or contracts entered into in accordance with the law, shall be corrected by the competent authority, and if losses are caused, compensation shall be made in accordance with the law; if harmful consequences or impacts are caused, the responsible leaders and directly responsible personnel shall be given disciplinary sanctions in accordance with the law.
Large enterprises that refuse or delay payment of accounts to small and medium-sized private economic organizations in violation of laws, administrative regulations, or contractual agreements shall bear legal liability in accordance with the law.
Article 74 Whoever violates the provisions of this Law and infringes upon the legitimate rights and interests of private economic organizations and their operators shall be subject to administrative penalties in accordance with the provisions of other laws and regulations; if personal injury or property loss is caused, civil liability shall be borne in accordance with the law; if a crime is constituted, criminal liability shall be pursued in accordance with the law.
Article 75 Private economic organizations and their operators whose production and business activities violate the provisions of laws and regulations shall be ordered to make corrections by the competent authority and shall be subject to administrative penalties in accordance with the law; if personal injury or property loss is caused, civil liability shall be borne in accordance with the law; if a crime is constituted, criminal liability shall be pursued in accordance with the law.
Article 76 Private economic organizations and their operators who obtain commendations, honors, preferential policies, etc., through fraud or other improper means shall have their commendations and honors revoked, their policy benefits canceled, and shall be punished in accordance with the law; if a crime is constituted, criminal liability shall be pursued in accordance with the law.
Chapter IX Supplementary Provisions
Article 77 The term "private economic organizations" as used in this Law refers to profit-making legal persons, unincorporated organizations, and individual industrial and commercial households established in accordance with the law within the territory of the People's Republic of China that are controlled or actually controlled by Chinese citizens, as well as profit-making legal persons and unincorporated organizations controlled or actually controlled by the aforementioned organizations.
Where private economic organizations involve foreign investment, the relevant provisions of laws and regulations on foreign investment shall apply simultaneously.
Article 78 This Law shall come into effect on May 20, 2025.