The refinement of supportive regulations for the Private Sector Promotion Law, as highlighted in the March 5, 2026, government work report, marks a critical 100% legislative consolidation of China’s “New Economy” drivers. By translating long-standing policy commitments into a unified legal architecture, the government aims to stabilize the private sector, which currently contributes approximately 60% of GDP, 80% of urban employment, and 90% of new job creation. The refinement focuses on ensuring equal access to production factors and establishing a 100% “level playing field” to counter the relative decline in private investment seen between mid-2021 and 2024.
1. Institutional Equality and Factor Allocation
The core objective of the refinement is to codify the “Two Unwaverings” concept into enforceable law, ensuring that private economic entities enjoy 100% equal legal status with state-owned enterprises (SOEs).
Market Access: Implementation of a unified national negative list system to ensure private firms can compete in high-growth sectors like AI, which is projected to exceed 10 trillion yuan in value by 2030.
Production Factors: Legal safeguards for equal access to land, capital, and data—critical for the 26,000 new enterprises established per day in 2025.
Capital Support: A total of 100 billion yuan from the 2026 fiscal package is specifically earmarked to support private investment and consumer spending, aiming to reverse the 0.1% dip in private investment seen in previous quarters.
2. Rights Protection and the “Anti-Involution” Mandate
The refinement addresses “rat race” (involutionary) competition through holistic measures, aiming to transition the market toward high-quality development rather than price-based attrition.
Standardized Enforcement: The law prohibits arbitrary fees, fines without legal basis, and the apportioning of property from private organizations, aiming for a 100% reduction in administrative “overreach.”
Intellectual Property: Enhanced protection for technological innovation, particularly for “new economy” leaders like Tencent, Alibaba, and BYD, as well as emerging GPU and AI chipmakers that saw their share of China’s top 100 companies rebound to 40% in late 2025.
Oversight: The NPC Standing Committee has conducted a comprehensive overhaul of normative documents that hindered private development, ensuring that 100% of conflicting local regulations are aligned with the new national statute.
3. Strategic Impact on the 15th Five-Year Plan
By refining these supportive policies, China is setting the stage for a 4.5% to 5.0% GDP growth target in 2026. This legal framework is designed to restore confidence among the 6.3 million millionaires and millions of entrepreneurs who anchor the country’s high-tech manufacturing and decarbonization efforts. According to reports from People’s Daily, the value-added output of high-tech manufacturing grew by 9.4% in 2025, a growth rate that the new law seeks to sustain by providing a “predictable and transparent” legal environment for the next five years.
News source:https://peoplesdaily.pdnews.cn/china/er/30051564442
