context: May marks one year of the Private Sector Promotion Law, the PRC's first foundational law dedicated to private firms. To mark the anniversary, the National Development and Reform Commission issued a 'Rule of law escorting the private economy action plan', signalling continued institutional follow-through. Private firms play a crucial role in the PRC’s economy, but unfair treatment, profit-driven cross-jurisdictional enforcement and successive regulatory crackdowns have stalled growth and dented investment confidence. The law aims to put sectoral support on a legal footing and stabilise expectations as Beijing leans on private firms to shore up a slowing economy.
Beijing will strengthen macro policy support, expand effective investment and improve and improve arrangements for private firms to participate major national projects said Zheng Shanjie 郑栅洁 NDRC (National Development and Reform Commission) director, at a 20 May symposium marking the first anniversary of the Private Economy Promotion Law.
Since enactment, 170+ supporting measures have followed, with industrial added value at large-scale private enterprises rising 5.3 percent in 2025 and Q1 2026 profits at major private industrial firms up 25.4 percent.
Private firms have gained resilience and confidence under rule-of-law protection, says Qi Xiangdong 齐向东 ACFIC (All-China Federation of Industry and Commerce) vice chair and Qi An Xin chair, calling for 'equal protection' to be embedded across bidding, government procurement and financing-cost reduction, with stronger oversight against fair-competition violations.
Private investment, however, remains weak. January to April 2026 figures fell 5.2 percent y-o-y (-1.9 percent excluding real estate), per National Bureau of Statistics data. Sluggish growth reflects a 'temperature gap' between market expectations and policy transmission, says Tian Lihui 田利辉 Nankai University finance professor, who calls for tackling the 'last mile' of implementation.
Policy follow-up is rolling out
- the State Administration for Market Regulation's 2026 key work priorities for promoting private-economy growth lists 34 tasks across regulation, fair competition and service capacity
- NDRC 'Rule of law escorting the private economy action plan', running May to December 2026 before becoming a standing program
- its 18 measures include supporting-policy buildout and channels for reporting problems