Optimizing the Legal Environment for the Private Sector

Swift implementation of new supreme court guidelines is essential to bolster the shaken confidence of private businesses operating in China

Workers move product on Sept. 13 at a private aluminum wheel manufacturer in Fuzhou, East China’s Jiangxi province. Photo: VCG

In a significant judicial move to protect the property rights of private enterprises and the lawful rights and interests of entrepreneurs, China’s Supreme People’s Court recently issued the Guidelines on Optimizing the Rule of Law Environment to Promote the Development and Growth of the Private Economy. This release further conveys the decision-makers’ dedication to bolstering the confidence of private entrepreneurs and fostering the growth of the private economy. However, as the saying goes: “actions speak louder than words.” It’s essential that the guidelines are implemented swiftly and without compromise.

Over the past 20 years, there has been no shortage of policy documents that have aimed to boost the development of the private economy. At the central government level alone, there have been four comprehensive key documents specifically tailored to this, including the 36 Articles on the Non-Public Economy. The latest, issued in July by the Central Committee of the Communist Party and the State Council, is the Opinions on Promoting the Development and Growth of the Private Economy. The guidelines released by the Supreme Court represent a concrete realization of the central government’s directive in the adjudication and execution of enterprise-related cases. They detail 27 specific requirements.