Phoenix TV:

The Private Sector Promotion Law will officially come into effect on May 20. What impact is expected from the implementation of the law on the development of the private sector? What practical impact will it have on private enterprises or private economic organizations? Thank you.

Zheng Bei:

Thank you. I will answer your questions. In his important speech at the symposium on private enterprises on Feb. 17 this year, General Secretary Xi Jinping pointed out the direction for the development of the private economy on the new journey of the new era, significantly inspiring enthusiasm and boosting confidence. The introduction of the Private Sector Promotion Law is a major step in implementing the guiding principles of General Secretary Xi Jinping's speech. I believe that this law is of great significance and has far-reaching impact on the high-quality development of the private sector.

First, the law will further stabilize expectations. The Private Sector Promotion Law stipulates that we should work unswervingly both to consolidate and develop the public sector and to encourage, support and guide development of the non-public sector, and that the promotion of the sustainable, healthy and high-quality development of the private economy is a significant and long-term policy of China. The law emphasizes the basic principles of equal treatment, fair competition, equal protection and common development, fully demonstrating the Party and the state's unequivocal commitment to and firm resolve in promoting the development of the private economy. It reinforces development certainty through legal stability, offering reassurance to private enterprises as they pursue growth with greater confidence.

Second, it will further strengthen confidence. The Private Sector Promotion Law actively responds to the concerns of private enterprises and establishes targeted institutional arrangements. Regarding fair participation in market competition, the law stipulates that China will implement a unified nationwide negative list system for market access and will enforce fair competition review mechanisms. The law also ensures that businesses can enter any sector that is not explicitly prohibited. In terms of equal access to production factors, the law stipulates that the state guarantees private economic organizations equal access to capital, technology, human resources, data, land and other production factors as well as public service resources in accordance with the law. This ensures a level playing field for all stakeholders. On equal legal protection, the law stipulates that the personal rights, property rights, and operational autonomy of private economic organizations and their operators are protected by law. It emphasizes that these rights must not be violated.

Third, it will further promote high-quality development. Since reform and opening up began, and particularly since the 18th CPC National Congress, the private sector has grown to a considerable scale. Its overall strength, innovation capability and market competitiveness have improved significantly, making it an important force in building national strength and advancing national rejuvenation. The Private Sector Promotion Law addresses current needs while planning for the future, providing strong legal protection for the high-quality development of the sector. On the one hand, it focuses on encouragement and support. For example, it includes dedicated chapters such as "Investment and Financing Promotion" and "Technological Innovation," which support private enterprises in participating in major national strategies and projects, and in investing and starting businesses in strategic emerging industries and future industries. The law also encourages them to actively contribute to promoting technological innovation, cultivating new quality productive forces, and building a modern industrial system. On the other hand, it focuses on guidance and regulation. It guides private enterprises to improve their governance structure and management systems, commit to lawful and compliant operations, strengthen risk prevention, fulfill social responsibilities, and promote the sound development of the private sector and the well-rounded growth of those engaged in it.

We believe that the promulgation of this law will inspire private enterprises and entrepreneurs to be bold and daring, making new and greater contributions to advancing Chinese modernization. Thank you.