FX.co ★ China Passes First-Ever Law to Promote Private Economy

China's highest legislative body passed the landmark Private Economy Promotion Law on Wednesday, marking a pivotal move in bolstering the nation's private sector amidst enduring trade challenges with Western countries. This law, the first of its kind in China, was approved by the Standing Committee of the National People's Congress and will be implemented on May 20, as reported by state news agency Xinhua. The legislation is designed to "enhance the environment for the private economy, ensure equitable market competition across all economic entities, and support the robust development of the private sector and its stakeholders." Comprising nine chapters and 78 articles, the law addresses critical areas such as fair competition, investment and funding, technological advancement, and the protection of rights. Private businesses are integral to China's economy, accounting for over 60% of the GDP and 80% of urban jobs. As of March, China's registry reflected more than 57 million private enterprises, making up over 92% of all businesses nationwide.