China bolsters legal protection for private enterprises under new law

China is stepping up legal protection for private businesses by strengthening oversight of administrative law enforcement. This move comes as the country prepares to implement its first fundamental law dedicated to promoting the private sector, which is set to take effect on May 20.

At a press conference held Thursday, vice minister of justice Wang Zhenjiang said the private sector promotion law directly addresses long-standing concerns from private enterprises, including excessive inspections, arbitrary fines, and profit-driven enforcement by local authorities.

He said that the Ministry of Justice will introduce a series of targeted measures under the new law, including establishing a complaint and reporting handling mechanism for administrative law enforcement violations, and liaison points to enhance communication between law enforcement supervisors and enterprises.

Wang also announced the rollout of an administrative law enforcement supervisor system involving legislators, legal experts, media representatives, among others.

Meanwhile, a nationwide campaign will be launched to standardize administrative law enforcement involving businesses. Wang said that the ministry will use the promulgation of the law as an opportunity to urge all local authorities to intensify their efforts in investigating and punishing administrative law enforcement violations.

To ensure long-term protection of private businesses, the ministry is accelerating the drafting of a new set of regulations on administrative law enforcement oversight, Wang added.

China's private sector promotion law, adopted on April 30 by lawmakers at a session of the Standing Committee of the National People's Congress, comprises 78 articles in nine chapters covering such areas as fair competition, investment and financing promotion, scientific and technological innovation, regulatory guidance, service support, rights and interests protection and legal liabilities. ■