Private Sector Promotion Law of the People's Republic of China

Chapter I General Provisions

Article 1 This Law is formulated in accordance with the Constitution to optimize the development environment for the private sector, ensure fair participation of all economic organizations in market competition, promote the healthy development of the private sector economy and the healthy growth of private-sector participants, develop a high-level socialist market economy system, and leverage the important role of the private sector in national economy and social development.

Article 2 The promotion of the development of the private sector shall uphold the leadership of the Communist Party of China (CPC), adhere to a people-centered approach, and adhere to the socialist system with Chinese characteristics, in order to ensure the correct political direction for the development of the private sector.
The State shall adhere to the fundamental socialist economic systems, including the dominant role of public ownership alongside the development of diverse forms of ownership, the dominant role of work-based income distribution while allowing other forms of distribution to coexist, as well as the socialist market economic system; unswervingly consolidate and develop the public sector, unswervingly encourage, support, and guide the development of the non-public sector economy; fully leverage the decisive role of the market in resource allocation, and better play the role of the government.

Article 3 The private sector is an important component of the socialist market economy, a vital force for advancing Chinese-style modernization, an important foundation for high-quality development, and an important driving force behind China’s comprehensively development into a modern socialist country and the realization of the great rejuvenation of the Chinese nation. Promoting the sustained, healthy, and high-quality development of the private sector is a long-standing major policy of the State.
The State shall adhere to encouraging, supporting, and guiding the development of the private sector in accordance with the law, and better utilize the role of the rule of law in consolidating foundations, stabilizing expectations, and benefiting long-term interests.
The State shall adhere to the principles of equal treatment, fair competition, equal protection, and shared development in promoting the growth and development of the private sector. Private-sector organizations shall be entitled to equal legal status, market opportunities, and development rights as other economic organizations.

Article 4 The State Council and people's governments at or above the county level shall incorporate the promotion of the development of the private sector into national economic and social development plans, establish a coordination mechanism for promoting the development of the private sector, develop and improve policies and measures, and coordinate efforts to address major issues in the development of the private sector.
The development and reform agency under the State Council shall be responsible for overall coordination of promoting the development of the private sector. Other relevant agencies under the State Council shall be responsible for relevant efforts in promoting the development of the private sector within their respective jurisdictions.
Relevant agencies under the people's governments at or above the county level shall promote the development of the private sector in accordance with laws, regulations, and the division of duties determined by the respective people's governments at the corresponding level.

Article 5 Private-sector organizations and their operators shall uphold the leadership of the Communist Party of China, adhere to the socialist system with Chinese characteristics, and actively engage in the building of a modern socialist country.
The State shall strengthen the training for operators of private-sector organizations (hereinafter referred to as “private-sector organization operators”), enhance ideological and political guidance for them, and leverage their important role in economic and social development; cultivate and promote entrepreneurial spirit, and guide private-sector organization operators to uphold the core socialist values, demonstrate patriotism and dedication, operate in accordance with the law, pursue entrepreneurship and innovation, give back to society, and remain committed builders of socialism with Chinese characteristics and active contributors to Chinese-style modernization.

Article 6 In engaging in in production and business activities, private-sector organizations and their operators shall comply with laws and regulations, uphold social and business ethics, act with integrity, engage in fair competition, fulfill social responsibilities, ensure the lawful rights and interests of workers, safeguard national interests and public interests, and accept government and social oversight.

Article 7 Federations of industry and commerce shall play an important role in promoting the healthy development of the private sector and the healthy growth of private-sector participants, enhance the ideological and political development of private-sector organization operators, guide private-sector organizations to operate in accordance with the law, and improve services for the private sector.

Article 8 Publicity and reporting on the exemplary performance by private-sector organizations and their operators in areas such as innovation and creation shall be strengthened, and private-sector organizations and their operators shall be supported in participating in commendations and awards, in order to guide the development of a social environment that respects work, creativity, and entrepreneurs, and create an atmosphere in which the society as a whole cares for, supports, and promotes the development of the private sector.

Article 9 The State shall establish and improve a statistical system for the private sector, conduct statistical analysis of its development, and regularly release relevant information.

Chapter II Fair Competition

Article 10 The State shall implement a national unified negative list system for market access. In areas not included in the negative list for market access, all economic organizations, including private-sector organizations, may enter on an equal basis in accordance with the law.

Article 11 People's governments at all levels and their relevant agencies shall implement a fair competition review system, and any policies and measures formulated that involve the production and business activities of business entities shall undergo fair competition review and be regularly evaluated, with those that hinder the national unified market and fair competition being promptly eliminated or abolished, thereby ensuring the fair participation of private-sector organizations in market competition.
Market regulatory agencies shall be responsible for receiving reports on policies and measures that violate the fair competition review system and addressing them in accordance with the law.

Article 12 The State shall ensure that private-sector organizations are entitled to the equal use of funds, technology, human resources, data, land, and other various production factors and public service resources in accordance with the law, and that they are equally eligible under the law for the State’s development support policies.

Article 13 People's governments at all levels and their relevant agencies shall, within their statutory authority, treat private-sector organizations equally in developing and implementing policies and measures in areas such as government funding arrangements, land supply, emission quotas, public data access, qualification licensing, standards setting, project applications, professional title evaluations, commendations and awards, and human resources.

Article 14 Public resource transaction activities shall be open, transparent, fair, and just, and treat all economic organizations, including private-sector organizations, equally in accordance with the law.
Except as otherwise provided by law, bidding, government procurement, and other public resource transaction activities shall not impose restrictions on or exclude private-sector organizations.

Article 15 Anti-monopoly and anti-unfair competition law enforcement agencies shall, in accordance with their duties and authority, prevent and stop monopolistic and unfair competition practices in market economic activities, and in accordance with the law, address the abuse of administrative power to exclude or restrict competition, thereby creating a favorable market environment for the business activities of private-sector organizations.

Chapter III Investment and Financing Promotion

Article 16 Private-sector organizations shall be supported in participating in major national strategies and projects. Private-sector organizations shall be supported in investing and starting businesses in fields including strategic emerging industries and industries of the future, as well as encouraged to engage in the transformation and upgrading of traditional industries and to participate in the investment and development of modern infrastructure.

Article 17 Relevant agencies under the State Council shall, based on major national development strategies, development plans, industrial policies, etc., coordinate efforts to research and develop policies and measures that promote investment by the private sector, publish information on major projects that encourage investment by the private sector, and guide the private sector to invest in key areas.
Private-sector organizations investing in fixed asset investment projects that align with national strategic directions shall be entitled to national supportive policies in accordance with the law.

Article 18 Private-sector organizations shall be supported in revitalizing existing assets through various means to enhance their reinvestment capacity and improve asset quality and efficiency.
People's governments at all levels and their relevant agencies shall support private-sector organizations in participating in public-private partnership projects. In public-private partnership projects, the rights and obligations of each party shall be reasonability established, and matters such as the methods for obtaining investment returns, risk-sharing mechanisms, and dispute resolution methods shall be clearly stipulated.

Article 19 People's governments at all levels and their relevant agencies shall provide efficient and convenient investment services to private-sector organizations in areas such as project promotion and matchmaking, preliminary preparations, project application and approval procedures, access to essential resources, and government investment support.

Article 20 Relevant agencies under the State Council shall, in accordance with their duties, leverage the incentive and constraint functions of monetary and credit policy tools and macro-credit policies to implement differentiated regulation, based on market-oriented and law-based principles, on financial institutions providing financial services to small and micro private-sector organizations, as well as urge and guide financial institutions to reasonably set tolerance levels for non-performing loans, establish and improve due diligence-based liability exemption mechanisms, enhance professional service capabilities, and improve the level of financial services provided to private-sector organizations.

Article 21 Banking financial institutions and local financial organizations shall, in accordance with laws and regulations, accept forms of collateral that meet loan business requirements, and provide loans to private-sector organizations secured by rights such as accounts receivable, warehouse receipts, equity, and intellectual property rights.
People's governments at all levels and their relevant agencies shall provide support and facilitation for the registration of pledges, valuation, trading, circulation, and information sharing of movable property and rights.

Article 22 The State shall promote the establishment and refinement of a market-based risk-sharing mechanism for financing to private-sector organizations, and support banking financial institutions in expanding business cooperation with financing guarantee institutions in an orderly manner to jointly serve private-sector organizations.

Article 23 Financial institutions shall, subject to compliance with laws and regulations, develop and provide financial products and services suited to the characteristics of the private-sector economy in accordance with market-oriented principles and the principle of sustainable development, facilitate financing for private-sector organizations with good credit standing, and enhance the compatibility of credit supply and loan cycles with the financing needs and fund usage cycles of private-sector organizations, thereby improving the accessibility and convenience of financial services.

Article 24 Financial institutions shall treat private-sector organizations equally in areas such as credit granting, credit management, risk control and management, and service charges.
If financial institutions violate their agreements with private-sector organizational borrowers by imposing additional lending conditions, unilaterally suspending loan disbursements, or recalling loans early, they shall be liable for breach of contract in accordance with the law.

Article 25 The multi-tiered capital market system shall be improved to support qualified private-sector organizations in gaining equal access to direct financing through means such as issuing stocks or bonds.

Article 26 A mechanism for the collection and sharing of credit information shall be established and improved, and credit reporting institutions shall be supported in providing credit reporting services for financing to private-sector organizations, while credit rating institutions shall be supported in optimizing rating methodologies and increasing the effective supply of credit ratings for private-sector organizations, thereby facilitating private-sector organizations in obtaining financing from financial institutions.

Chapter IV Scientific and Technological Innovation

Article 27 The State encourages and supports private-sector organizations in playing an active role in promoting technological innovation, fostering new forms of productive forces, and building a modern industrial system. Private-sector organizations shall be guided, based on national strategic needs, industry development trends, and global scientific and technological frontiers, to strengthen basic and cutting-edge research, develop core critical technologies, fundamental generic technologies, and cutting-edge interdisciplinary technologies, and drive scientific and technological innovation, as well as industrial innovation and integrated development, thereby creating new industries, new models, and new growth drivers.
Non-profit funds shall be guided to lawfully support private-sector organizations in conducting basic research, cutting-edge technology research, and socially beneficial technology research.

Article 28 Private-sector organizations shall be supported in participating in national key scientific and technological projects, with capable private-sector organizations supported in leading major technological tasks; private-sector organizations shall be granted access to national major scientific research infrastructure, and the opening and sharing of public research and development platforms, as well as generic technology platforms, shall be supported to provide equal services to private-sector organizations for technological innovation; various enterprises, as well as higher education institutions, scientific research institutes, and vocational schools, shall be encouraged to establish innovation collaboration mechanisms with private-sector organizations, and to conduct technology exchanges as well as transfers and commercialization of research findings, thereby promoting extensive industry-academia-research integration.

Article 29 Private-sector organizations shall be supported in lawfully participating in the research and development of generic digital and smart technologies, as well as the development of the data factor market, lawfully and reasonably using data, lawfully developing and utilizing open public data resources, and enhancing the sharing, inclusivity and security of data factors, thereby fully leveraging the empowering role of data.

Article 30 The State shall ensure that private-sector organizations can participate in standards setting in accordance with the law, while enhancing information disclosure and social supervision in standards setting.
The State shall provide services and facilitation to private-sector organizations in areas such as infrastructure, technology verification, standards and norms, quality certification, inspection and testing, intellectual property, and demonstration applications.

Article 31 Private-sector organizations shall be supported in enhancing the application of new technologies, conducting application trials of new technologies, new products, new services, and new models, while leveraging the role of technology markets and intermediary service institutions to promote the application and dissemination of scientific and technological advances through multiple methods.
Private-sector organizations shall be encouraged to voluntarily engage in technology cooperation based on commercial rules during the investment process. The terms and conditions for technology cooperation shall be determined by all investing parties through consultation in accordance with the principle of fairness.

Article 32 Private-sector organizations shall be encouraged to actively cultivate and utilize knowledge-based, skill-based, and innovation-oriented talent, as well as to cultivate and utilize highly skilled talent in key positions and key processes, thereby promoting the growth of the industrial workforce.

Article 33 The State shall strengthen the protection of original innovations by private-sector organizations and their operators. The intellectual property protection of innovation results shall be strengthened, and a punitive damages system for intellectual property infringement shall be implemented to investigate and punish trademark, patent, and copyright infringements, infringements of trade secrets, counterfeiting, and other illegal activities in accordance with the law.
Regional and inter-agency collaboration in intellectual property protection shall be strengthened to provide private-sector organizations with services such as fast-track collaborative protection of intellectual property, diversified dispute resolution, and rights protection assistance, as well as guidance on responding to overseas intellectual property disputes and risk alerts.

Chapter V Regulated Operations

Article 34 The Communist Party of China (CPC) organizations and members within private-sector organizations shall carry out Party activities in accordance with the CPC Constitution and relevant Party regulations, leveraging the political guiding role of Party organizations, as well as the leading and exemplary role of Party members, in promoting the healthy development of private-sector organizations.

Article 35 Private-sector organizations shall play an active role in economic development, employment expansion, improvement of people’s well-being, scientific and technological innovation, and other areas centered around the overall planning of the State, contributing to meeting the ever-growing needs of the people for a better life.

Article 36 In engaging in production and business activities, private-sector organizations shall comply with laws and regulations including those related to labor and employment, work safety, occupational health, social security, ecological environment, quality standards, intellectual property, cyber and data security, fiscal and taxation, and finance; they must not seek improper gains through means such as bribery or fraud, nor disrupt market and financial order, cause damage to the ecological environment, or infringe upon the lawful rights and interests of workers or social and public interests.
State authorities shall exercise supervision and regulation of the production and business activities of private-sector organizations in accordance with the law.

Article 37 Private capital shall be supported in serving economic and social development, while the systems and rules governing capital behavior shall be improved to regulate and guide the healthy development of private capital in accordance with the law, thereby maintaining the order of the socialist market economy and safeguarding public interests. Private-sector organizations shall be supported in strengthening risk prevention and management, as well as encouraged to optimize their core businesses, strengthen their capabilities in industrial sectors, and enhance their core competitiveness.

Article 38 Private-sector organizations shall improve their governance structures and management systems, regulate the conduct of their operators, and strengthen internal supervision to achieve regulated governance; they shall establish and improve, in accordance with the law, a system of democratic management with the employee representatives’ assembly as the basic form. Private-sector organizations with suitable conditions shall be encouraged to establish and improve a modern enterprise system with Chinese characteristics.
Trade unions and other mass organizations within private-sector organizations shall conduct their activities in accordance with laws and their respective charters, enhance ideological and political guidance for employees, safeguard the lawful rights and interests of employees, play their role in democratic management within enterprises, promote the improvement of the collective wage bargaining system for enterprises, and help foster harmonious labor relations.
The organizational forms, governance structures, and operational rules of private-sector organizations shall be governed by the provisions of the Company Law of the People’s Republic of China, the Partnership Enterprise Law of the People’s Republic of China, the Law of the People’s Republic of China on Sole Proprietorship Enterprises, and other relevant laws.

Article 39 The State shall promote the establishment of systems and mechanisms for the source prevention and control of corruption within private-sector organizations, support and guide private-sector organizations in establishing and improving internal audit systems, as well as strengthening integrity risk prevention and control, and drive them to enhance their level of operating and managing in a legal and compliant manner to promptly prevent, discover, and address violations and other issues during operations.
Private-sector organizations shall strengthen legal education for their personnel and foster an organizational culture of integrity and compliance with laws and regulations.

Article 40 Private-sector organizations shall, in accordance with laws, administrative regulations, and nationally uniform accounting rules, strengthen financial management and standardize accounting practices to prevent financial fraud, and shall separate organizational income and expenditures from the personal income and expenditures of their operators, thereby ensuring the isolation of assets between the organizations and their operators.

Article 41 Private-sector organizations shall be supported in fostering the sharing of growth with employees through methods such as strengthening skills training, expanding employment, and improving wage distribution systems.

Article 42 Efforts shall be made to explore the establishment of a social responsibility evaluation system and an incentive mechanism for private-sector organizations, in order to encourage and guide them to actively fulfill their social responsibilities and voluntarily participate in public welfare, charitable activities, emergency relief, and other related endeavors.

Article 43 When investing and conducting business overseas, private-sector organizations and their operators shall comply with the laws of the host countries or regions, respect local customs and cultural traditions, and uphold China’s national image, and must not engage in activities that undermine China’s national security or national interests.

Chapter VI Service Safeguards

Article 44 State authorities and their staff shall fulfill their duties and responsibilities in accordance with the law in promoting the development of the private sector economy. Staff of state authorities and private-sector organization operators shall adhere to regulations and disciplinary rules and maintain integrity during their professional interactions.
People's governments at all levels and their relevant agencies shall establish unobstructed and effective communication mechanisms between the government and enterprises to promptly hear the opinions and suggestions of all economic organizations, including private-sector organizations, and address their reasonable concerns.

Article 45 When State authorities formulate laws, administrative regulations, rules, or other normative documents, or when the Supreme People’s Court or the Supreme People’s Procuratorate issues relevant interpretations concerning the specific application of laws in judicial or procuratorial work, or when major decisions are made that are closely related to the production and business activities of business entities, due consideration shall be given to the opinions and suggestions of various types of economic organizations, including private-sector organizations, as well as industry associations and chambers of commerce. A necessary period for adaptation and adjustment shall be provided before implementation, based on the actual circumstances.
In accordance with the Legislation Law of the People's Republic of China, laws, administrative regulations, departmental rules, and other normative documents, as well as judicial interpretations concerning the specific application of law, which that are closely related to the production and business activities of business entities, shall not have retroactive effect, except for special provisions made to better protect the rights and interests of citizens, legal persons, and other organizations.

Article 46 People's governments at all levels and their relevant agencies shall promptly disclose to the public the applicable scope, standards, criteria, application procedures, and other information regarding preferential policies for business entities, and facilitate private-sector organizations in applying for relevant preferential policies.

Article 47 People's governments at all levels and their relevant agencies shall develop policies to encourage entrepreneurship by private-sector organizations, provide public services, and encourage entrepreneurship to drive employment.

Article 48 Registration authorities shall provide registration services for the establishment, changes, cancellation, and other related matters of various economic organizations, including private-sector organizations, in a legal, compliant, standardized, uniform, open, transparent, and efficient manner, thereby reducing the market entry and exit costs for business entities.
Individually-owned businesses may voluntarily transform into enterprises. Market regulatory, tax, and other relevant agencies shall provide guidance and facilitation for individually-owned businesses to transform into enterprises.

Article 49 Higher education institutions, scientific research institutes, vocational schools, public training bases, and various vocational skills training institutions shall be supported and encouraged to innovate talent training models and strengthen vocational education and training to cultivate professional talents and industrial workers that meet the high-quality development needs of the private sector.
Human resources and social security agencies shall establish and improve human resources service mechanisms, develop platforms to connect recruitment and job-seeking information, and provide facilitation for private-sector organizations in recruitment and employment.
People's governments at all levels and their relevant agencies shall refine incentive and service safeguard policies and measures for talent, ensure unobstructed channels for professional title evaluations within private-sector organizations, and provide support for private-sector organizations in introducing and cultivating high-level and urgently needed talents.

Article 50 Administrative agencies shall adhere to administration in accordance with the law. Administrative law enforcement activities shall avoid or minimize impact on the normal production and business activities of private-sector organizations, while promptly responding to and addressing their reasonable and legitimate demands.

Article 51 Penalties for illegal activities committed by private-sector organizations and their operators shall be enforced in accordance with the principle that they shall be treated equally as other economic organizations. If administrative penalties or other measures are legally mandated for any illegal activities, they shall be proportional to the facts, nature, circumstances, and degree of social harm of those illegal activities. In cases where lenient or reduced penalties, or exemption of penalties, as stipulated in the Law of the People's Republic of China on Administrative Penalties, are applicable, those provisions shall be followed.

Article 52 People's governments at all levels and their relevant agencies shall promote the sharing and mutual recognition of regulatory information and implement classified and graded regulation based on the credit status of private-sector organizations to enhance regulatory efficiency. Except for special industries and key fields, such as those directly related to public safety or the life and health of the people, which are subject to prioritized regulation with full coverage in accordance with laws and regulations, administrative inspections within the realm of market regulation shall be conducted through the method of randomly selecting inspection targets and randomly assigning law enforcement inspectors, with the inspection items and case outcomes promptly disclosed to the public. For multiple inspection items concerning the same inspection target, they shall, to the extent possible, be consolidated or included within the scope of cross-departmental joint inspections.

Article 53 People's governments at all levels and their relevant agencies shall establish and improve mechanisms for addressing complaints and reports of violations in administrative law enforcement activities, and receive and address complaints and reports promptly to protect the lawful rights and interests of private-sector organizations and their operators.
Judicial administrative agencies shall establish communication mechanisms related to enterprises for addressing demands concerning administrative law enforcement, organize and conduct inspections of administrative law enforcement, strengthen supervision over administrative law enforcement activities, and promptly rectify any improper conduct in administrative law enforcement.

Article 54 The credit loss penalty and credit restoration systems shall be improved. Credit loss penalties shall be imposed in accordance with laws, regulations, and relevant provisions, with appropriate penalty measures taken based on the nature and severity of the conduct that resulted in credit loss.
If private-sector organizations and their operators rectify the conduct resulting in credit loss, eliminate any adverse impacts, and meet the conditions for credit restoration, they may apply for credit restoration. Relevant State authorities shall promptly lift the penalty measures in accordance with the law, remove or terminate the public announcement of the credit loss information, and ensure the coordinated restoration of their credit on relevant public credit information platforms.

Article 55 A diversified dispute resolution mechanism shall be established and improved to facilitate private-sector organizations in safeguarding their lawful rights and interests.
Judicial administrative agencies shall organize and coordinate lawyers, notaries, judicial appraisers, basic-level legal services, people’s mediation, commercial mediation, arbitration, and other relevant institutions and legal consultants to participate in resolving disputes involving private-sector organizations, thereby providing targeted legal services to these organizations.

Article 56 Relevant industry associations and chambers of commerce shall, in accordance with laws, regulations, and their respective charters, play a coordinating and self-regulatory role to timely voice industry demands, and provide services such as information consultation, publicity and training, market development, rights protection, and dispute resolution to private-sector organizations and their operators.

Article 57 The State shall adhere to a high level of opening up to the outside world and accelerate the development of a new development pattern, with the domestic economy as the mainstay and the domestic and international dual circulations reinforcing each other; support and guide private-sector organizations in expanding international exchanges and cooperation, and engaging in investment and business activities overseas in compliance with laws and regulations; strengthen comprehensive overseas services in areas such as law, finance, and logistics, and improve mechanisms for protecting overseas interests to safeguard the lawful rights and interests of private-sector organizations and their operators abroad.

Chapter VII Protection of Rights and Interests

Article 58 The personal rights, property rights, operational autonomy, and other lawful rights and interests of private-sector organizations and their operators shall be protected by law. No entity or individual may infringe upon such rights.

Article 59 The right to name, right to reputation, and right to honor of private-sector organizations, as well as the rights to reputation, honor, privacy, personal information and other personality rights of their operators, shall be protected by law.
No entity or individual shall maliciously infringe upon the personality rights of private-sector organizations and their operators through insults, defamation, or other means via the Internet or other channels. Network service providers shall strengthen the management of online information content, establish and improve complaint and reporting mechanisms, promptly address illegal information that maliciously infringes upon the lawful rights and interests of the parties concerned, and report such activities to relevant competent authorities in accordance with relevant laws and regulations.　
Private-sector organizations and their operators whose personality rights have been maliciously infringed upon shall have the right to apply to the people's courts to order the infringing party to cease the relevant actions in accordance with the law. If malicious infringement of the personality rights of any private-sector organization or its operator results in actual losses to the production, business, investment, financing, or other activities of the private-sector organization, the infringing party shall be liable for compensation in accordance with the law.

Article 60 When State authorities and their staff conduct investigations or request assistance in investigations in accordance with the law, they shall avoid or minimize disruption to normal production and business activities. The implementation of compulsory measures restricting personal freedom shall be strictly conducted in accordance with statutory authority, conditions, and procedures.

Article 61 The requisition or expropriation of property shall be strictly conducted in accordance with statutory authority, conditions, and procedures.
If property is requisitioned or expropriated in the public interest in accordance with legal provisions, fair and reasonable compensation shall be provided.
No entity may charge private-sector organizations any fees in violation of laws or regulations, impose fines without legal or regulatory basis, or apportion or assign financial or material obligations to them.

Article 62 The sealing, seizure, or freezing of property involved in a case shall comply with statutory authority, conditions, and procedures, and a clear distinction must be made between illegal gains and other property involved in the case and lawful property; between the property of the private-sector organization and the personal property of its operator; and between the property of parties involved in the case and that of unrelated parties. The sealing, seizure, or freezing of property must not exceed the prescribed authority, scope, amount, or time limit. Sealed or seized property shall be properly safeguarded.

Article 63 When handling cases, a strict distinction shall be made between economic disputes and economic crimes, and the legal provisions on statutes of limitations for prosecution shall be observed; production and business activities that do not violate criminal law provisions shall not be treated as crimes; cases in which the facts are unclear, the evidence is insufficient, or which, according to the law, do not warrant the pursuit of criminal liability, shall be withdrawn, not prosecuted, have trial proceedings terminated, or be concluded with an acquittal, in accordance with the law.
It is prohibited to unlawfully intervene in economic disputes through administrative or criminal means.

Article 64 Cross-regional law enforcement activities shall be regulated, and a system for cross-regional law enforcement assistance shall be established and improved. Where handling a case necessitates cross-regional law enforcement, the statutory authority, conditions, and procedures shall be followed. In the event of a jurisdictional dispute between State authorities, consultation may be conducted; if consultation fails, the matter shall be submitted to their common higher-level agency for decision, unless otherwise provided by law.
Abuse of authority to conduct cross-regional law enforcement for economic interests or other purposes is strictly prohibited.

Article 65 If private-sector organizations and their operators object to the legality of their production and business activities being challenged or to any compulsory measures imposed by State authorities, they may report or appeal to the relevant authorities, apply for administrative reconsideration, or initiate litigation in accordance with the law.

Article 66 Procuratorial authorities shall exercise legal supervision over litigation activities involving private-sector organizations and their operators in accordance with the law, and receive and review relevant appeals and accusations in a timely manner. If illegal circumstances are found, they shall make an appeal, corrective opinion, or prosecutorial suggestion in accordance with the law.

Article 67 State authorities, public institutions, and state-owned enterprises shall pay their accounts payable to private-sector organizations in a timely manner, in accordance with the law or contractual agreements, and must not refuse or delay payments to private-sector organizations on the grounds of personnel changes, internal payment processes, or, in the absence of contractual provisions, waiting for project completion acceptance replies, final accounts audits, etc.; except as otherwise provided by laws or administrative regulations, they shall not demand audit results as the basis for settlement.
Audit authorities shall conduct audits and supervision on the payment of accounts payable to private-sector organizations by State authorities, public institutions, and state-owned enterprises in accordance with the law.

Article 68 Large enterprises shall reasonably stipulate payment periods and ensure timely payment of accounts payable to small and medium-sized private-sector organizations when procuring goods, projects, services, or other items from them, and must not make such payment conditional on receiving payments from third parties.
The people's courts shall promptly file, hear, and enforce cases involving arrears owed to small and medium-sized private-sector organizations in accordance with the law, and may conduct mediation based on the principles of voluntariness and legality, in order to protect the lawful rights and interests of small and medium-sized private-sector organizations.

Article 69 People's governments at or above the county level shall strengthen efforts to ensure payment of accounts payable to private-sector organizations and to prevent and eliminate arrears owed to them; strengthen budget management and strictly adhere to approved budgets in government procurement projects; enhance overall guidance on handling arrears, encourage parties to resolve disputes through negotiation, and organize negotiation and mediation for cases involving major differences. The role of organizations such as federations of industry and commerce and lawyers' associations shall be leveraged in negotiation and mediation.

Article 70 People's governments at all levels and their relevant agencies shall fulfill policy commitments made to, as well as contracts entered into with private-sector organizations, in accordance with the law, and must not breach or retract contracts on the grounds of adjustments to administrative divisions, changes in government, organizational or functional adjustments, or changes in relevant personnel.
Any necessary amendments to policy commitments or contractual agreements due to national interests or public interests shall be carried out in accordance with statutory authority and procedures, while compensation shall be provided to private-sector organizations for any losses incurred as a result of such amendments.

Chapter VIII Legal Liability

Article 71 In the event of any of the following violations of this Law, the competent authorities shall order rectification; if adverse consequences or impacts are caused, disciplinary actions shall be taken against the responsible officials and directly liable staff in accordance with the law:
(1) Issuing policies or measures that have not undergone or passed a fair competition review; or
(2) Restricting or excluding private-sector organizations from participating in bidding, government procurement or other public resource transactions.

Article 72 Where requisition, expropriation, sealing, seizure, freezing, or other measures are imposed in violation of this Law, the competent authorities shall order rectification, and if losses are incurred, compensation shall be provided in accordance with the law; if adverse consequences or impacts are caused, disciplinary actions shall be taken against the responsible officials and directly liable staff in accordance with the law.
Where cross-regional law enforcement is conducted in violation of this Law, the competent authorities shall order rectification, and if adverse consequences or impacts caused, disciplinary actions shall be taken against the responsible officials and directly liable staff in accordance with the law.

Article 73 Where State authorities, public institutions, and state-owned enterprises refuse or delay payment of accounts payable to private-sector organizations in violation of laws, administrative regulations, or contractual agreements, or where people's governments at various levels and their relevant agencies fail to fulfill policy commitments made to or contracts entered into with private-sector organizations in accordance with the law, the competent authorities shall order rectification, and if losses are incurred, compensation shall be provided in accordance with the law; if adverse consequences or impacts are caused, disciplinary action shall be taken against the responsible officials and directly liable staff in accordance with the law.
Where large enterprises refuse or delay payment of accounts payable to private-sector organizations in violation of laws, administrative regulations, or contractual agreements, they shall bear legal liability in accordance with the law.

Article 74 In cases where the lawful rights and interests of private-sector organizations or their operators are infringed upon in violation of this Law, if other laws or regulations stipulate administrative penalties, those provisions shall apply; if property losses or personal injuries are caused, civil liability shall be imposed in accordance with the law; if a crime is constituted, criminal liability shall be pursued in accordance with the law.

Article 75 In cases where the production and business activities of private-sector organizations or their operators violate the provisions of laws or regulations, the competent authorities shall order rectification, and impose administrative penalties in accordance with the law; if property losses or personal injuries are caused, civil liability shall be imposed in accordance with the law; if a crime is constituted, criminal liability shall be pursued in accordance with the law.

Article 76 If private-sector organizations or their operators obtain commendations or honors, benefit from preferential policies, etc. through fraudulent or other improper means, the commendations, honors, and policy benefits obtained shall be revoked, and penalties shall be imposed in accordance with the law; if a crime is constituted, criminal liability shall be pursued in accordance with the law.

Chapter IX Supplementary Provisions

Article 77 For the purposes of this Law, the term "private-sector organizations" refers to for-profit legal persons, unincorporated organizations, and individually-owned businesses legally established within the territory of the People's Republic of China, in which Chinese citizens hold controlling shares or actual control, as well as for-profit legal persons and unincorporated organizations in which the aforementioned organizations hold controlling shares or actual control.
In cases where private-sector organizations involve foreign investment, the relevant provisions of foreign investment laws and regulations shall also apply.

Article 78 This Law shall come into force on May 20, 2025.