China is taking a key step toward fostering the healthy development of the private sector with the draft private economy promotion law made public on Thursday to solicit public opinions.

Released by the Ministry of Justice and the National Development and Reform Commission, the draft law marks China's very first basic law regarding the development of the private economy and signals a promising shift toward a more favorable legal framework for the private sector.

Under the draft law, the country aims to create a better environment that fosters fair competition, facilitates private investment, supports technological innovation, and protects the legal rights and interests of private businesses, which will help stabilize market expectations and boost business confidence, the NDRC said in a statement posted on its website on Thursday.

The NDRC emphasized that the move reflected China's commitment to ensuring long-term, high-quality growth of the private economy.

With 77 articles across nine chapters, the draft law seeks to codify key policies and practices aimed at fostering the development of the private economy into a legal framework. It underscores equal treatment and protection for private enterprises while promoting their regulated and healthy growth.

According to the draft law, in areas outside the negative list for market access, all types of market entities, including private enterprises, are legally allowed equal entry. It calls for the implementation of a fair competition review system, the regulation of bidding and government procurement activities, and the promotion of fair participation by private enterprises in market competition and their equal access to production factors.

Under the draft law, China will encourage private enterprises to play an active role in the development of new quality productive forces, ensure their legal involvement in standards setting and the development and use of public data resources, and strengthen the protection of their intellectual property rights.

Notably, it said the country will better regulate measures related with personal freedom and actions such as the sealing, detention, and freezing of assets, requiring that such measures follow within the jurisdiction stipulated by law and in accordance with legal procedures. It also prohibits the illegal use of administrative or criminal measures to interfere in economic disputes.