Core Points - The "Private Economy Promotion Law" was passed by the 15th meeting of the 14th National People's Congress Standing Committee and will take effect on May 20, 2025, marking China's first foundational law specifically for the development of the private economy [1] - The law aims to solidify the legal foundation for the development of the private economy, which contributes over 60% of China's GDP and more than 80% of urban employment, thus playing a crucial role in stabilizing economic confidence and expectations [1][2] - The law consists of 9 chapters and 78 articles, covering various aspects such as fair competition, investment promotion, technological innovation, and legal responsibilities [1] Summary by Sections Legal Status and Framework - The law is the first to explicitly state the legal status of the private economy and to incorporate the principles of supporting both public and private economic development into legal text [2] - It establishes a long-term national policy for the sustainable, healthy, and high-quality development of the private economy [2] Innovation and Development - The law encourages private enterprises to engage in technological innovation and to take on significant national technological challenges, thereby enhancing their role in modernizing the industrial system [3] - It aims to stimulate the innovative capabilities of private enterprises by creating a stable policy environment and fostering a supportive social atmosphere [3] Market Access and Competition - The law addresses barriers to market entry for private enterprises, ensuring equal access to various sectors and prohibiting discriminatory practices in public resource transactions [3][4] - It emphasizes the importance of fair competition as a key to invigorating the private economy, thereby boosting confidence and stabilizing expectations for private enterprises [4] Governance and Compliance - The law promotes the establishment of sound governance structures within private enterprises, enhancing internal supervision and compliance with financial regulations to prevent corruption and financial misconduct [4] - It aims to improve the governance capabilities of private enterprises and their social responsibility, contributing to China's modernization efforts [4]