Core Viewpoint - The Supreme People's Court has issued a notification emphasizing the prevention of illegal extraterritorial law enforcement and profit-driven judicial practices, addressing local protectionism in handling enterprise-related cases [1][4]. Group 1: Legal Framework and Guidelines - The notification mandates the strict implementation of the case registration system, ensuring the protection of parties' litigation rights and prohibiting delays or selective case registrations [2][5]. - It emphasizes the principle of legal jurisdiction, prohibiting the expansion of jurisdiction for profit-driven purposes and ensuring that civil cases are not dismissed under criminal pretenses [2][4]. - The notification highlights the need to distinguish between economic disputes and criminal offenses, reinforcing legal principles such as equality before the law and the presumption of innocence [5][6]. Group 2: Addressing Local Protectionism - The issue of local protectionism in the judiciary is underscored, with calls for reforms to ensure the uniform application of national laws and to mitigate the influence of local interests [4][6]. - The notification reiterates the importance of preventing the artificial creation of extraterritorial jurisdiction and the expansion of jurisdiction based on local interests [4][5]. - Legal experts have pointed out that the misuse of jurisdiction is often linked to local protectionism, particularly in cases involving online and economic crimes [2][3]. Group 3: Enforcement Measures - The notification specifies the need for precise application of asset seizure and freezing measures, ensuring that such actions do not unduly impact normal business operations [6]. - It calls for the differentiation between illegal gains and legitimate assets, prohibiting the seizure of unrelated properties [6]. - The notification also emphasizes the need for fair judicial review of administrative cases involving enterprises, aiming to rectify issues such as arbitrary fines and inspections [6].

Core Viewpoint - The article emphasizes that the rule of law is the best business environment, highlighting the ongoing legislative process of the Private Economy Promotion Law, which aims to enhance the legal status and protection of the private economy in China [1][2]. Summary by Sections Legislative Progress - The Private Economy Promotion Law draft is undergoing its second review, with improvements noted in its execution and specificity regarding various issues faced by private enterprises [1][3]. Key Highlights of the Law - The law establishes fundamental principles such as equal treatment, fair competition, and equal protection, affirming the legal status of the private economy as a vital component of the socialist market economy [3]. - It includes detailed provisions addressing specific challenges faced by private enterprises, enhancing its enforceability and protective measures [3][4]. Legal and Regulatory Recommendations - There is a suggestion to further refine the legal responsibilities concerning accountability for violations, enhancing the law's deterrent effect [4]. - The principle of "law permits what is not prohibited" should guide private enterprises in their innovative business practices, ensuring they do not fear legal repercussions as long as they operate within legal boundaries [5]. Addressing Enforcement Issues - Recommendations include strictly limiting the authority to freeze corporate bank accounts, ensuring that such measures are necessary, reasonable, and proportionate [8]. - There is a call for clearer regulations regarding the restriction of personal freedom for corporate leaders to prevent operational disruptions [9]. Tackling "Involution" Competition - "Involution" competition is identified as a form of unfair competition, primarily driven by leading companies abusing their market dominance, which threatens the survival of smaller enterprises and harms consumer interests [13]. - A multi-faceted approach is suggested to combat "involution" competition, including strict enforcement of antitrust laws and enhancing corporate credit evaluation systems [14]. Bankruptcy Law Revisions - The article highlights the need for improvements in the bankruptcy law, particularly in the areas of bankruptcy liquidation and reorganization, to better protect creditor and consumer rights while promoting economic development [15].