China to enact landmark private economy law, eyes stronger role for private sector in national projects

China will implement its first-ever foundational law to promote the private economy on May 20, marking a milestone in the country's support for the sector, vice justice minister Wang Zhenjiang said on Wednesday.

The Private Economy Promotion Law lays out legal guarantees to ensure fair competition, improve access to financing, encourage innovation, and protect the rights and interests of private businesses. It also aims to create a more stable, transparent, and predictable environment for private sector development.

At the same press conference held by the State Council Information Office (SCIO), Zheng Bei, vice chairman of the National Development and Reform Commission (NDRC), said China is accelerating efforts to involve private capital in major national projects.

Private investors now hold up to 20 percent equity in some nuclear power projects, Zheng said. In sectors such as industrial equipment upgrades and recycling, private capital accounts for more than 80 percent of total investment.

Zheng added that the government plans to roll out high-quality projects this year worth around 3 trillion yuan ($414.7 billion) in key areas including transportation, energy, water resources, new infrastructure, and urban development.

Also speaking at the briefing, Cong Lin, vice head of the National Financial Regulatory Administration (NFRA), said tailored financial support is being introduced for private firms in critical sectors.

Under a "one policy per industry" approach, China's financial institutions are designing targeted services based on the characteristics of individual sectors. For high-tech and emerging industries, where private firms have shown strong performance, regulators are focusing on improving the tech finance model—starting with boosting investment-financing links.

So far, 74 private equity funds have been set up, and 18 pilot cities have launched mergers and acquisitions (M&A) loan programs to support the capital needs of tech companies.