The private sector promotion law, which took effect on May 20, represents a landmark move by China to support private enterprise. The law aims to address existing challenges and provide a stable legal foundation for long-term innovation and growth.

At a recent press briefing hosted by the State Council Information Office, Zheng Bei, deputy director of the National Development and Reform Commission (NDRC), outlined the government's commitment to bolstering the private economy through three key strategies: breaking down market barriers, expanding development opportunities, and enhancing service support.

The NDRC, in collaboration with other departments, has released a revised market access negative list, reducing restrictions and increasing opportunities for private firms. A nationwide campaign to clean up market access barriers is underway and will transition into long-term enforcement. Private companies are also gaining greater access to bidding for public procurement. From January to April, private firms' bid success rate rose by five percentage points year-on-year, with over 80 percent of contracts under 100 million RMB awarded to private bidders. Businesses encountering obstacles can now report them via a dedicated portal on the NDRC website.

Private enterprises are being encouraged to take part in major national projects and emerging industries. A long-term mechanism is being established to support their involvement in key sectors like nuclear power and railways, where some projects now have up to 20 percent private capital participation. Over 80 percent of funds in industrial equipment upgrades and recycling initiatives have been allocated to private companies.

This year, China plans to launch nearly three trillion RMB worth of high-quality projects across transportation, energy, water conservation, infrastructure and urban development. In addition, private firms will be supported in spearheading national tech innovation efforts, gaining equal access to key R&D infrastructure and collaborative platforms.

The NDRC will improve services for private investment by promoting key projects and streamlining support across project matchmaking, preparation and approval.

It also plans to expedite access to land, environmental reviews and funding, as well as supporting talent development, data market participation, standard setting and IP protection. Strengthening the credit system will further boost innovation in the private sector.