National lawmakers on Wednesday voted to adopt the Private Economy Promotion Law – the first of its kind in China – underscoring support for a key sector of the world's second-largest economy.

Passed at a session of the Standing Committee of the National People's Congress, the law will take effect on May 20, Xinhua news agency reported.

The new law "will further optimise the development environment for the private economy, ensure fair market competition for all types of economic entities, and foster the sound development of both the private sector and its practitioners", according to Xinhua.

It consists of nine chapters and 78 articles, including fair competition, investment and financing promotion, technological innovation, and rights protection, it added.

Private enterprises have long been a key driving force behind China's economic growth, contributing more than 60 percent of GDP and 80 percent of urban employment.

By the end of March, more than 57 million registered private enterprises made up over 92 percent of all businesses in China.

Authorities have in recent months unveiled a raft of measures to support private firms and the economy. (Additional reporting by Reuters)
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Last updated: 2025-04-30 HKT 11:08