
China passes private sector law, addressing gripes of beleaguered businesses
China passed a much-anticipated law to shore up the country's private economy on Wednesday, as Beijing delivers on its oft-repeated promise to protect and promote the non-state sector at a time when the Chinese economy looks to hinge more on domestic dynamism to ensure growth amid a trade war with the United States.
The 78-article Private Economy Promotion Law was passed following its third reading by the Standing Committee of the National People's Congress, China's top legislature. It will come into force on May 20.
As China's first law focused on promoting the private sector, it stipulates measures to promote fair market competition, encourage the involvement of private firms in scientific and technological projects, and safeguard their economic rights and interests, according to state media reports. The full text of the legislation has yet to be published.
Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.
Li Zhaoqian, president of the China Society for the Study of the Private-Sector Economy, wrote in an article published in Communist Party newspaper the People's Daily on Wednesday that the law's success would depend on it being thoroughly implemented.
'There are still difficult issues and choke points such as market access, unpaid debts owed to private enterprises, financing barriers, as well as protecting the rights of entrepreneurs,' Li said. 'To tackle these, we need more vigorous coordination to strengthen implementation supervision [of the law].'
Tang Dajie, a senior researcher with the China Enterprise Institute think tank in Beijing, said a key provision in the law was a measure aimed at preventing local authorities from unfairly targeting private businesses – so-called 'profit-driven' law enforcement.
'In the past two years, the business community has responded strongly to profit-seeking law enforcement and officers going beyond their jurisdiction to collect fines or seize assets,' Tang said. 'The law will restrict the law enforcement power of the public security department and promote strict, standardized, fair and civilized law enforcement.'
China's leaders hope the new law will be a morale booster. There had been expectations that the law would be deliberated over – and possibly passed – during last month's annual legislative session, but it was not.
The passage of the law appeared to have been accelerated since the latest meeting of the Standing Committee of the National People's Congress began on Sunday, with legislators voting after the third reading, Tang noted.
The move comes at a crucial moment for China, as government efforts to boost domestic demand and investment gain increasing urgency with the Chinese economy beginning to feel the impact of sky-high US tariffs.
The drafting and crafting of a law dedicated to the private sector began in 2024, led by the top economic planning agency, the National Development and Reform Commission. A draft was released for public feedback in October.
And the law's second review in February sparked wider discussions on market entry and enforcement issues. That month, President Xi Jinping raised expectations when he assembled the country's most prominent private entrepreneurs to rally the sector and seek its help in stabilising the economy. It was the first such meeting held since 2018.
China's private sector is responsible for more than 60 per cent of the nation's gross domestic product, 70 per cent of its technological innovation, and 80 per cent of urban jobs, according to the National Bureau of Statistics.
But China's unbalanced economic recovery, sluggish consumption, and regulatory uncertainties have sapped investor sentiment for years. The private sector's long-standing complaints, including the curtailment of market access and perceived favouritism towards the state sector, have yet to be fully addressed.
Private investment has contracted for years. But in an encouraging sign, the sector's new investment edged up 0.4 per cent, year on year, in the first quarter.
More from South China Morning Post:
For the latest news from the South China Morning Post download our mobile app. Copyright 2025.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


The Star
30 minutes ago
- The Star
America's cold shoulder to foreign students is worrying Asia
The Harvard Students for Freedom rally in support of international students at the Harvard University campus in Boston recently. The US government said it intends to cancel most foreign student visas. — AFP AN Ivy League degree has long been central to the Asian Dream – a ticket to success and status. But President Donald Trump's message to international students is clear: Far fewer of you are welcome. The blunt statement and growing chaos across the university sector has left families wondering if sending their children to America is still worth it. The White House's immediate target is Chinese students allegedly connected to the Communist Party. Secretary of State Marco Rubio has said the United States plans to start 'aggressively' revoking their visas. Students affected would include 'those with connections to the Chinese Communist Party or studying in critical fields.' The US will also enhance scrutiny 'of all future visa applications from the People's Republic of China and Hong Kong,' he added. It's unclear how these rules will be executed; the move follows a short period of improved ties between the superpowers after they agreed to a truce in the trade war. China's Foreign Ministry has expressed its dissatisfaction, saying it had lodged a protest with the US. The impact is wider than Washington and Beijing's geopolitical rivalry. The decision to ban Harvard from enrolling international students is focusing minds in Asia, even though a federal judge has temporarily blocked the policy. Many families are wondering if other universities will be next. The rhetoric coming out of the White House is hardly reassuring. 'We have people who want to go to Harvard and other schools; they can't get in because we have foreign students there,' Trump had said. Students of other universities protesting in support of international students at Harvard University. — Bloomberg This attitude, combined with a directive ordering US embassies worldwide to stop scheduling interviews for student visas sends a chilling message to Asian students: The Ivy aspiration is no longer as accessible as it once was. The worries are pouring in on my parent chat groups. Many have already spent thousands of dollars preparing children for a future at a prestigious American university – hiring expensive college counsellors, visiting campuses, and investing countless hours navigating complex application processes. That's not to mention time spent on preparing for standardised tests and extracurricular activities, all in an effort to perfect the profile for a prospective candidate. There are also legitimate concerns about what happens to deposits and scholarships, all of which are up in the air as students and their families figure out what the new rules mean for them. It's no small cost. An average American degree can set an international student's family back approximately US$100,000 (RM42,300) over four years, excluding living costs. An Ivy League degree? It's more than triple that. Parents spend decades making sacrifices and putting aside the massive investment required to help their kids go to their dream university. The money is worth it, the thinking goes, because eventually their child will reap the rewards. The schools get something out of this, too. Foreign applicants are more likely to pay full tuition, essentially subsidising American students who receive aid. Over a million international students studied in American universities in the 2023-2024 school year, according to data from Open Doors, an information resource for foreign students studying or teaching in the US. Asians made up a significant proportion, with Indians and Chinese citizens accounting for over half. America is not going to lose its appeal overnight. It's still a coveted place to study, both because of its world-class tertiary education and the potential to find lucrative employment after graduation. But other countries are becoming more attractive because of the Trump administration's crackdown. Some parents I've spoken to will simply go elsewhere. Canada and the United Kingdom, already popular alternatives, are poised to scoop up disillusioned applicants. Closer to home, Australia and New Zealand are also promoting their schools. Asian universities that offer top-tier programs will appeal to anxious Asian families. Schools such as the Hong Kong University of Science and Technology, the University of Tokyo, and Malaysia's Sunway University are offering credit transfers and other incentives to attract ambitious students and families looking for quality education without the uncertainties tied to American foreign policy. For many Asian students who have dreamt of studying and working in cities like New York or Los Angeles, the political gyrations affecting their futures are no doubt disappointing. But this is about more than visas and policies. It's about the hopes of a generation searching for a place to study, grow, and build their future. Trump has just made the US seem like a far less inviting option. — Bloomberg Opinion/TNS Karishma Vaswani is a Bloomberg Opinion columnist covering Asia politics with a special focus on China.


The Sun
an hour ago
- The Sun
PT Resources enhances capabilities with coconut processing facility in Fujian, China
PETALING JAYA: PT Resources Holdings Bhd (PTRB), which is involved in the processing and trading of frozen seafood products as well as trading of meat and non-meat products, has established a coconut processing facility under its wholly owned subsidiary, Fujian HJS International Holdings Co Ltd. The facility is located in the China-Indonesia Food Industrial Park in Fuqing City, Fujian Province, China. PTRB is the first wholly foreign-owned enterprise to set up a coconut processing operation within the park and in China. With this development, the group is broadening their food processing capabilities to include coconut-based products. The new facility is equipped to produce a wide range of value-added products such as frozen coconut water, frozen coconut milk, desiccated coconut, and other derivatives, capturing the complete potential of the coconut fruit. The group is investing about RMB29 million (RM17 million) for the facility. This investment is financed entirely with internally generated funds. Trial production is under way, and commercial operations are expected to commence by the middle of this month. In the initial phase, the group will focus on supplying frozen and dried coconut products to business-to-business (B2B) customers such as food and beverage (F&B) manufacturers within Fujian Province and nearby regions. Fujian is strategically positioned as one of China's key import and processing hubs for mature coconuts, serving a wide network of F&B manufacturers within a 700km radius of the group's facility. This further enhances the group's logistical reach. According to Grand View Research, China accounted for 10.2% of the global coconut product market in 2022, generating a revenue of US$2.1 billion. The China market is projected to grow to US$3.6 billion by 2030 and China is expected to remain a key player in the Asia-Pacific region. PTRB managing director Heng Chang Hooi said: 'We are optimistic about the growing demand for coconut-based products in China, supported by its large population of 1.4 billion, rising interest for plant-based diets, and increasing demand for dairy alternatives. The popularity of coconut milk in coffee chains and specialty beverage outlets reflects this trend. There is also a surge in demand for coconut water and coconut milk, attributed to greater health awareness and preference for natural, low-sugar beverages.' Additionally, he said, coconut-based dairy alternatives such as coconut yogurt are gaining popularity, with brands like Yeyo on Tmall and in retail outlets such as City Super, BHG, and ALDI. Beyond the F&B segment, coconut by-products such as coconut shells have industrial use, including in the production of activated carbon for airpurifiers. Heng said, 'PTRB is actively exploring B2B collaborations with Chinese distributors and manufacturers, including opportunities for private-label production and OEM services as part of our localisation strategy. We also aim to leverage on Fujian's export infrastructure to access Asean markets, and will participate in trade exhibitions such as the China Food and Drinks Fair.' On the supply side, PTRB is in the process of securing consistent supplies of mature coconuts from Indonesia, one of the world's leading coconut producers. These arrangements will ensure a steady supply of coconuts to meet the anticipated demand, Heng said.


The Sun
2 hours ago
- The Sun
PR Resources enhances capabilities with coconut processing facility in Fujian, China
PETALING JAYA: PT Resources Holdings Bhd (PTRB), which is involved in the processing and trading of frozen seafood products as well as trading of meat and non-meat products, has established a coconut processing facility under its wholly owned subsidiary, Fujian HJS International Holdings Co Ltd. The facility is located in the China-Indonesia Food Industrial Park in Fuqing City, Fujian Province, China. PTRB is the first wholly foreign-owned enterprise to set up a coconut processing operation within the park and in China. With this development, the group is broadening their food processing capabilities to include coconut-based products. The new facility is equipped to produce a wide range of value-added products such as frozen coconut water, frozen coconut milk, desiccated coconut, and other derivatives, capturing the complete potential of the coconut fruit. The group is investing about RMB29 million (RM17 million) for the facility. This investment is financed entirely with internally generated funds. Trial production is under way, and commercial operations are expected to commence by the middle of this month. In the initial phase, the group will focus on supplying frozen and dried coconut products to business-to-business (B2B) customers such as food and beverage (F&B) manufacturers within Fujian Province and nearby regions. Fujian is strategically positioned as one of China's key import and processing hubs for mature coconuts, serving a wide network of F&B manufacturers within a 700km radius of the group's facility. This further enhances the group's logistical reach. According to Grand View Research, China accounted for 10.2% of the global coconut product market in 2022, generating a revenue of US$2.1 billion. The China market is projected to grow to US$3.6 billion by 2030 and China is expected to remain a key player in the Asia-Pacific region. PTRB managing director Heng Chang Hooi said: 'We are optimistic about the growing demand for coconut-based products in China, supported by its large population of 1.4 billion, rising interest for plant-based diets, and increasing demand for dairy alternatives. The popularity of coconut milk in coffee chains and specialty beverage outlets reflects this trend. There is also a surge in demand for coconut water and coconut milk, attributed to greater health awareness and preference for natural, low-sugar beverages.' Additionally, he said, coconut-based dairy alternatives such as coconut yogurt are gaining popularity, with brands like Yeyo on Tmall and in retail outlets such as City Super, BHG, and ALDI. Beyond the F&B segment, coconut by-products such as coconut shells have industrial use, including in the production of activated carbon for airpurifiers. Heng said, 'PTRB is actively exploring B2B collaborations with Chinese distributors and manufacturers, including opportunities for private-label production and OEM services as part of our localisation strategy. We also aim to leverage on Fujian's export infrastructure to access Asean markets, and will participate in trade exhibitions such as the China Food and Drinks Fair.' On the supply side, PTRB is in the process of securing consistent supplies of mature coconuts from Indonesia, one of the world's leading coconut producers. These arrangements will ensure a steady supply of coconuts to meet the anticipated demand, Heng said.