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China's State Council Information Office held a press conference on Thursday to introduce the country's first-ever Private Sector Promotion Law, which will take effect on May 20. Officials stated that the new law is expected to unlock the full potential of the private sector.
The private sector has become a key driver of China's economic growth, contributing 56.8 percent of foreign trade, more than 50 percent of fixed-asset investment and tax revenue, over 60 percent of GDP, over 70 percent of technological innovations, and more than 80 percent of urban employment. Notably, over 90 percent of all market entities in China are private enterprises.