The Poster News APP:

As China's first fundamental law specifically dedicated to promoting the private sector, what are the important legal implications of formulating and implementing the Private Sector Promotion Law? Thank you.

Wang Ruihe:

As everyone knows, over the past 40 years of reform and opening up, China's private sector has grown from humble beginnings to remarkable strength, achieving substantial development. At the same time, theories and policies on the private sector continue to be rolled out while evolving with the times and undergoing continuous improvement. General Secretary Xi Jinping said that the basic principles of the Party and the state on the development of the private sector have been incorporated into the system of socialism with Chinese characteristics and will be consistently adhered to and implemented, which cannot and will not be changed. The adoption of the Private Sector Promotion Law has put the Party and the state's fundamental principles, policies and some effective practices for fostering private sector growth into law. By doing so, the law for supporting and protecting the development of the private sector has been incorporated into the socialist legal system with Chinese characteristics. In terms of legal significance, this marks an important innovation. Moreover, it is consistent with many provisions of the Constitution, providing legal assurance for the proper enforcement of the Constitution.

Specifically, the current Constitution has established the fundamental economic system with public ownership as the mainstay and multiple forms of ownership developing together. It also stipulates that the state protects the legitimate rights and interests of private businesses and the non-public sector of the economy. The country encourages, supports and guides the development of the non-public sector, and supervises and regulates the non-public sector according to the law. Article 1 of the Private Sector Promotion Law clearly stipulates that: "The law is formulated in accordance with the Constitution." It stipulates that the state upholds and improves the basic socialist economic systems, including the system under which public ownership is the mainstay and diverse forms of ownership develop together, the system under which distribution according to work is the mainstay while multiple forms of distribution exist alongside it, and the socialist market economic system. The country always unswervingly consolidates and develops the public sector, and unswervingly encourages, supports and guides the development of the non-public sector. This has been written into the Private Sector Promotion Law. At the same time, the law clarifies the role of the private sector: Private sector is an important part of the socialist market economy, a vital contingent for promoting Chinese modernization, a significant foundation for high-quality development, and a principal force for promoting the development of China into a great modern socialist country in all respects and the rejuvenation of the Chinese nation. Legally defining this status reflects the judicious judgment of the CPC Central Committee and represents a broad societal consensus. Promoting the sustainable, healthy and high-quality development of the private sector is a crucial principle and policy that the state has long upheld. The formulation of the law fully demonstrates that our Party and the state will not and cannot change the fundamental policies regarding the development of the private sector. This legislation will undoubtedly improve the legal framework for the high-quality development of the private sector, and make supporting systems more robust and effective. Thank you.