(Yicai) May 6 -- China's new law dedicated to promoting the private sector, which will come into effect later this month, meets the expectations of most private businesses and will stimulate their high-quality development, according to several experts.

The external environment is becoming more complex and severe, and the promulgation of the law is of great significance to promoting the high-quality development of the private economy, said Liu Min, deputy director of the National Development and Reform Commission's Bureau of Private Economy. It encourages parties to respond to the uncertainty of changes with confidence in their work and the uncertainty of rapid shifts in the external environment with high-quality development certainty, Liu added.

Chinese lawmakers voted to adopt China's first fundamental law dedicated to promoting the private sector at a session of the Standing Committee of the National People's Congress on April 30. The 78-article law, which stipulates that promoting the sustainable, healthy, and high-quality development of the private economy is a significant and long-term policy of the country, will take effect on May 20.

The law satisfies the market expectations of most private organizations and is conducive to stabilizing entrepreneurs' development expectations, Qi Xiangdong, vice chairman of the All-China Federation of Industry and Commerce and chairman of cybersecurity firm Qi'anxin, told Yicai.

Most relevant content, such as the legitimate property rights and interests of private firms, used to be spread out in different legal provisions, with some being more reflected in the policies, noted Li Hongjuan, deputy director of the NDRC Economic Research Institute's private economy research office.

However, the policies have become laws that support the private economy's development and are integrated into the Chinese legal system, marking a historic milestone in the development of the private economy, Li noted.

The legislative value of the new law lies in integrating relevant provisions in laws and regulations such as the Civil Law and the Company Law, building a unified list of private economic rights, and laying a legal foundation for the development of the private economy, according to Li Shuguang, professor at China University of Political Science and Law.

Relevant authorities will formulate supporting implementation rules to ensure that the law can safeguard the legitimate rights and interests of private enterprises and entrepreneurs, Li pointed out.

Regarding ensuring fair competition, the law has improved the institutional mechanism for private economic entities' fair play in market access and has defined the policies and practices that have been effective in practice as laws, said Yang Heqing, director of the Economic Law Office of the Standing Committee of the NPC's legislative affairs commission.

The law is based on the fair competition review mechanism, which is a signal to continue creating a law-based business environment so private companies can participate in market competition more confidently, noted Liu Yonghao, chairman of New Hope Group.

The private sector promotion law puts forward clear support for private organizations in scientific and technological innovation and strengthens the protection of the self-innovation of private entities and their operators.

The law supports capable private businesses to take the lead in undertaking national key technological research tasks, opens up major national scientific research infrastructure to private organizations, and makes rules on providing technological innovation services, giving full play to the role of data empowerment, strengthening technology application and cooperation, encouraging the cultivation and employment of talents, and enhancing the protection of intellectual property rights, according to Yang.

In addition, the law emphasizes that the legitimate rights and interests of private organizations and their operators, including personal and property rights and operational autonomy, are protected.

Editor: Martin Kadiev