Translation. Region: Russian Federal
Source: People’s Republic of China in Russian – People’s Republic of China in Russian –
Source: People’s Republic of China – State Council News
On April 30, the Standing Committee of the National People’s Congress voted to pass China’s first basic law regulating the development of the private sector, the Law on Promoting the Development of the Private Sector. The law will go into effect on May 20, marking a shift from state support for private businesses to legal protection.
The law covers the entire life cycle of private enterprises – from creation and development to termination of activities, and also takes into account the key interests of various stakeholders in matters of fair competition, investment and financing, protection of rights and interests, and scientific and technological innovation.
An important task of the law is to boost the innovation capacity of private enterprises in the context of the new national strategy, said Feng Guo, vice president of the Economic Law Research Association of the China Law Society and a professor at the Wuhan University School of Law.
Currently, private enterprises play a leading role in technological innovation in China, accounting for more than 70% of the country’s technological achievements, and accounting for more than 80% of specialized and innovative small and medium enterprises (“little giants”) and more than 90% of national high-tech enterprises. This year, private companies have made significant breakthroughs in areas such as generative artificial intelligence, intelligent robotics, civil aviation, and quantum technology.
Tian Xuan, director of the National Institute of Financial Research at Tsinghua University, noted that the law contains a separate section on technological innovation. This is aimed at supporting private enterprises and stimulating investment in science and technology, which will contribute to the development of productive forces of new quality. It also demonstrates the state’s recognition of the important role of private entrepreneurs and the private sector in technological innovation.
The private sector of the economy plays a huge role in advanced technologies. The law particularly emphasizes the need to encourage the participation of private enterprises in innovation and the development of major projects and key industries, as well as to give them the opportunity to lead these processes.
The law provides support for the participation of private organizations in research and development of common digital and intelligent technologies, the creation of a data market, the legal and rational use of data, and the development and use of open public data.
Tian Xuan also noted that an important part of the Law is dedicated to protecting the rights and interests of private enterprises. This will allow entrepreneurs to focus on running their business, long-term investment and technological innovation, without being distracted by other issues.