The Private Sector Promotion Law, passed by China’s top legislature in April, aims to boost confidence among private enterprises and secure the rights and interests of entrepreneurs.
China’s top court issued a set of 25 guidelines on Friday to promote local businesses, laying out the framework for implementing the Private Sector Promotion Law that China adopted a few months ago, according to Chinese media reports.
The 25 articles cover overall requirements and judicial work related to equal treatment of relevant entities, guiding the private sector’s lawful operations, ensuring justice, and advancing improvements to build a fair judicial system, according to the SPC, China’s Supreme People’s Court (SPC) said in a statement, according to this report in China Daily.
In addition, efforts will be made to regulate monopoly and unfair competition behaviors, the court reportedly observed. Specifically, judicial efforts will be ramped up against monopoly and unfair competition, regulating actions that disrupt fair competition and market order.
The Private Sector Promotion Law, passed by China’s top legislature in April and implemented the following month, aims to boost confidence among private enterprises and secure the rights and interests of entrepreneurs. It promises equal treatment with state-owned firms, protects property rights, improves access to finance, and restricts arbitrary government interference.
The development is the latest in a series of efforts by the Chinese government to revive the local industry, which was already struggling to grow even before U.S. President Donald Trump first laid out his reciprocal tariff plans in April.
Broadly, private investment and consumer spending have fallen, with particularly acute weakness in the property market, signaling structural issues. China’s economic growth has slowed of late.
In response, China has cut interest rates, recapitalized local banks, and implemented several programs, which also include monetary benefits, to spur the local tech industry and private household consumption.
Chinese regulators have also recently warned Meituan, JD.com (JD), Alibaba (BABA), and others to scale back excessive discounts in their food delivery businesses and maintain stable prices in e-commerce.
On Stocktwits, the retail sentiment for BABA was ‘bearish’ and the KraneShares CSI China Internet ETF (KWEB), which tracks Chinese Internet companies listed in the U.S. The sentiment for JD was ‘extremely bearish.’
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