Market Potential - The structural advantages of China's super-large market are accelerating, with the number of registered business entities reaching 189 million by the end of 2024, a 3.1% increase from 2023, indicating strong economic resilience and market potential [2] - The number of private enterprises has grown from 10.857 million in 2012 to 56.707 million by the end of January 2025, a 5.2-fold increase, highlighting the significant role of private enterprises in technology development and innovation [4] Changes in Circulation System - The index for the development of small and medium-sized enterprises reached 89.5 in the first quarter of 2025, the highest since 2020, due to the relaxation of market access restrictions [5] - The national social logistics total reached 36.06 trillion yuan in 2024, a 5.8% increase year-on-year, with logistics costs as a percentage of GDP decreasing from 18% in 2012 to 14.4% in 2023 [11][15] Fair Competition in the Market - The implementation of the Fair Competition Review Regulations in August 2024 has led to a 2.78 percentage point decrease in identified issues, with an average processing time for simplified cases reduced by 5.7 days [19] - In the first half of the year, market regulators investigated 11 cases of monopoly agreements and abuse of market dominance, imposing fines totaling 632 million yuan [19] Consumer Environment - In 2024, the national market regulatory authorities received 39.239 million consumer complaints, with 18.625 million being complaints, resulting in a recovery of 5.16 billion yuan for consumers [20] - The retail sales of consumer goods reached 24.5458 trillion yuan in the first half of 2025, a 5.0% year-on-year increase, with 19 provinces exceeding the national average growth rate [6]

Core Viewpoint - The newly revised Anti-Unfair Competition Law, effective from October 15, aims to address prominent issues in market competition and enhance the legal framework for fair competition in China's socialist market economy [1][2]. Group 1: Legislative Changes - The number of articles in the Anti-Unfair Competition Law has increased from 33 to 41, reflecting a comprehensive update to address new market dynamics and protect consumer rights [1]. - The law now includes specific provisions to combat various forms of unfair competition, such as "involution" competition, data rights infringement, and malicious trading practices [1][2]. Group 2: Digital Economy and Data Protection - The revised law enhances regulations on unfair competition in the digital economy, particularly concerning the use of data, algorithms, and platform rules [2]. - It explicitly prohibits operators from using deceptive methods to acquire or utilize data held by other businesses, thereby protecting legitimate business interests and maintaining market order [2][3]. Group 3: Addressing "Involution" Competition - The law establishes a framework for addressing "involution" competition by mandating the creation of a fair competition review system and reinforcing the responsibilities of platform operators [4][5]. - It emphasizes that platforms should not force or indirectly compel businesses to sell below cost, which disrupts market competition [5]. Group 4: Implementation and Future Considerations - The implementation of the revised law requires the development of supporting regulations, including clarifying definitions of "large enterprises" and "small and medium enterprises," and establishing specific guidelines for addressing mixed behavior and online unfair competition [5].

Core Viewpoint - The article emphasizes the importance of creating a fair competitive environment for private enterprises in the socialist market economy, highlighting the need for equal opportunities in market competition and the commitment of provincial authorities to promote high-quality development of the private economy [1][2]. Group 1: Market Environment - The current issues faced by private enterprises include obstacles to fair competition and unequal treatment, with some regions not adhering to fair competition principles, making it difficult for private companies to compete on equal footing with state-owned enterprises [1][2]. - The construction of a high-efficiency, standardized, and open market system is urgent, leveraging the opportunity of building a unified national market to eliminate barriers and promote fair competition [1]. Group 2: Market Access - The release of the "Negative List for Market Access (2025 Edition)" has reduced the number of restrictions from 117 in 2022 to 106, indicating a move towards broader market access [1]. - The implementation of the latest negative list and the removal of market entry barriers are crucial to ensure that all enterprises, regardless of ownership or size, enjoy equal treatment and can enter the market legally [1]. Group 3: Institutional Support - The realization of fair competition requires solid institutional guarantees and strict enforcement of the fair competition review system, along with the elimination of policies that hinder a unified market [2]. - Addressing unreasonable restrictions in bidding and procurement processes is essential, with a focus on promoting transparency and fairness in government procurement to enhance the participation of small and medium-sized enterprises [2].

Core Viewpoint - The article emphasizes the need to comprehensively rectify "involutionary" competition to maintain a fair market order and promote high-quality economic development, as highlighted by Xi Jinping's directives and the government's work report [1][2][7]. Group 1: Market Competition Ecology - The article stresses the importance of correcting market failures and regulating competition order to ensure a fair competitive environment for all business entities [2][7]. - It identifies the prevalence of low-price, low-quality competition and illegal activities such as unfair competition and infringement, which distort market mechanisms and harm fair competition [2][4]. - The need for strict enforcement against unfair competition and price violations is highlighted, with a focus on key industries and sectors [2][3]. Group 2: Quality Supervision and Innovation - The article calls for increased quality supervision and inspection, particularly in online sales, to ensure consumer protection and product safety [3][4]. - It emphasizes the necessity for businesses to enhance their innovation capabilities to break free from the vicious cycle of "involutionary" competition, which hampers resource optimization and efficiency [4][5]. - The role of credit mechanisms in governing "involutionary" competition is discussed, advocating for the inclusion of entities with serious violations in a credit blacklist to enhance market discipline [4][6]. Group 3: Industry Standards and International Cooperation - The article advocates for the revision and establishment of national standards in key industries such as photovoltaics and electric vehicles to guide industry optimization and upgrade [5][6]. - It encourages businesses to explore diversified markets and engage in international cooperation, particularly in standardization and compliance with international regulations [6][7]. Group 4: Governance and Compliance - The article highlights the need for a systematic approach to address "involutionary" competition, involving collaboration among government, enterprises, and industry associations [7][8]. - It calls for the implementation of fair competition review systems and the rectification of improper market interventions to ensure a conducive business environment [7][8]. - The importance of enhancing enterprises' compliance management capabilities is emphasized, with a focus on training and communication to foster a culture of fair competition [8].

Core Points - The "Private Economy Promotion Law" was passed by the 14th National People's Congress Standing Committee and will take effect on May 20, marking the first foundational law specifically for the development of the private economy in China [1] - The law establishes clear provisions to ensure fair competition for private economic organizations, including the implementation of a fair competition review system and the prohibition of barriers to market entry [1][2] - The law aims to create a unified national market, emphasizing the importance of fair competition as a fundamental principle of the market economy [1][3] Summary by Sections Fair Competition System - The establishment and implementation of a fair competition system is crucial for optimizing resource allocation efficiency in market economic development and serves as a foundational system for private economic participation [2] - Article 11 of the law mandates that government departments must conduct fair competition reviews for policies affecting business operations and regularly evaluate and eliminate policies that hinder fair competition [2] Government Actions - In response to the law, the State Administration for Market Regulation has been actively improving supporting systems, including the implementation of the "Fair Competition Review Implementation Measures" and the revision of regulations to curb the abuse of administrative power [2] - A campaign to clean up market entry barriers has been launched, focusing on eliminating administrative monopolistic behaviors established through local regulations and administrative documents [2] Benefits to Private Economy - The fair competition review and enforcement against administrative monopolies are key measures to eliminate local protectionism and market segmentation, with the private economy being the primary beneficiary [3] - The law empowers market supervision departments to handle reports of violations against the fair competition review system, ensuring a conducive market environment for private economic organizations [3] - The ongoing implementation of the Private Economy Promotion Law and the optimization of the fair competition market environment aim to allow private economic entities to participate confidently and develop steadily in the market [3]