A newly passed law in China supporting the private economy is a milestone in cementing confidence in entrepreneurs at a time of external uncertainties, local deputies to the National People’s Congress (NPC) said on Friday.

National lawmakers this week adopted the landmark private economy promotion law, ensuring fair market competition and shoring up the growth of private businesses.

The 78-article legislation, which will take effect on May 20, requires equal market access from all sectors including private firms while banning the imposition of arbitrary fees and fines on businesses.

It also highlights the role private firms can take in the country’s leading innovative initiatives.

“This is a milestone in encouraging private enterprises to directly contribute to building our economy, especially [amid] this external environment,” Starry Lee, the city’s sole delegate to the NPC Standing Committee, told reporters.

“I would like to encourage all private enterprises to look into the details of this legislation.”

NPC deputy Rock Chen said the law would help to maintain “absolute confidence” among entrepreneurs.

“All their rights will be protected by legislation,” he said. “The clauses, the implementation, and the legal system are all embedded in this law. So private enterprises will have 100 percent confidence that they will be treated equally and fairly.”

Chen added the law allows private firms to focus on their business and not to worry about legal or political issues.