The 15th meeting of the Standing Committee of the 14th National People's Congress voted to pass the "Private Economy Promotion Law of the People's Republic of China" on April 30, which will come into effect on May 20.

As China's first basic law specifically on the development of the private economy, the Private Economy Promotion Law has 9 chapters and 78 articles, including general provisions, fair competition, investment and financing promotion, scientific and technological innovation, standardized operation, service guarantee, rights protection, legal liability and appendix.

The Law on Promoting the Private Economy, for the first time, has written "unswervingly consolidated and developed the public economy, unswervingly encouraged, supported and guided the development of the non-public economy" into the law, "promoting the healthy development of the private economy and the healthy growth of private economic personnel" into the law, for the first time, it has clarified the legal status of the private economy, and for the first time it has clearly stipulated that "promoting the sustained, healthy and high-quality development of the private economy is a major policy that the country has long adhered to."

The Law on Promoting the Private Economy stipulates that the state adheres to encouraging, supporting and guiding the development of the private economy in accordance with the law, and better play the role of law in consolidating the fundamentals, stabilizing expectations, and benefiting the long-term. The state adheres to the principles of equal treatment, fair competition, equal protection and common development, and promotes the development and growth of the private economy. Private economic organizations enjoy equal legal status, market opportunities and development rights with other types of economic organizations.

In terms of ensuring fair competition and promoting investment and financing, the Private Economy Promotion Law stipulates that the state implements a nationwide unified negative list system for market access. Areas outside the negative list of market access, all types of economic organizations, including private economic organizations, can enter equally according to law. Support private economic organizations to participate in major national strategies and major projects. Support private economic organizations to invest and start businesses in strategic emerging industries, future industries and other fields, encourage technological transformation and transformation and upgrading of traditional industries, and participate in investment and construction of modern infrastructure.

In addition, the Private Economy Promotion Law not only encourages and supports the development of the private economy, but also focuses on strengthening standardized guidance, and encourages private economic organizations with conditions to establish and improve a modern enterprise system with Chinese characteristics. In terms of service guarantee, it is stipulated that people's governments at all levels and their relevant departments establish smooth and effective government-enterprise communication mechanisms, listen to the opinions and suggestions of various economic organizations, including private economic organizations, and solve the reasonable problems they reflect.

"Private Economy Promotion Law of the People's Republic of China"

(full text)

Chapter 1 General Provisions

Article 1　In order to optimize the development environment of the private economy, ensure that all types of economic organizations participate in market competition fairly, promote the healthy development of the private economy and the healthy growth of private economic personnel, and give full play to the important role of the private economy in the national economic and social development, this Law is formulated in accordance with the Constitution.

Article 2:　Promoting the development of the private economy adheres to the leadership of the Communist Party of China, adheres to the people-centered approach, adheres to the socialist system with Chinese characteristics, and ensures the correct political direction of the development of the private economy.

The state adheres to the basic socialist economic system such as the public ownership as the main body and the common development of multiple ownership economies, distribution according to work as the main body, multiple distribution methods coexist, and socialist market economic system; unswervingly consolidate and develop the public ownership economy, unswervingly encourage, support and guide the development of the non-public economy; give full play to the decisive role of the market in resource allocation and better play the role of the government.

Article 3　The private economy is an important part of the socialist market economy, a new force in promoting Chinese-style modernization, an important foundation for high-quality development, and an important force in promoting China's comprehensive construction of a socialist modern power and realizing the great rejuvenation of the Chinese nation. Promoting the sustained, healthy and high-quality development of the private economy is a major policy and policy that the country has long adhered to.

The state insists on encouraging, supporting and guiding the development of the private economy in accordance with the law, and better play the role of law in consolidating the fundamentals, stabilizing expectations, and benefiting the long-term.

The state adheres to the principles of equal treatment, fair competition, equal protection and common development, and promotes the development and growth of the private economy. Private economic organizations and other economic organizations enjoy equal legal status, market opportunities and development rights.

Article 4　The State Council and local people's governments at or above the county level will include the work of promoting the development of the private economy in the national economic and social development plan, establish a coordination mechanism for promoting the development of the private economy, formulate and improve policies and measures, and coordinate and solve major problems in the development of the private economy.

The development and reform department of the State Council is responsible for coordinating and coordinating the development of the private economy. Other relevant departments of the State Council are responsible for promoting the development of the private economy within their respective responsibilities.

Relevant departments of local people's governments at or above the county level shall carry out work to promote the development of the private economy in accordance with laws and regulations and the division of responsibilities determined by the people's governments at the same level.

Article 5　Private economic organizations and their operators should support the leadership of the Communist Party of China, adhere to the socialist system with Chinese characteristics, and actively participate in the construction of a socialist modern power.

The state strengthens the construction of the team of operators of private economic organizations, strengthens ideological and political guidance, and plays its important role in economic and social development; cultivates and promotes entrepreneurial spirit, guides operators of private economic organizations to be models of patriotism, dedication, law-abiding, entrepreneurship and innovation, and rewards society, practices the core socialist values, and be qualified builders of the cause of socialism with Chinese characteristics.

Article 6　Private economic organizations and their operators shall abide by laws and regulations when engaging in production and operation activities, abide by social morality and business ethics, be honest and trustworthy, compete fairly, fulfill social responsibilities, safeguard national interests and social public interests, and accept government and social supervision.

Article 7　The Federation of Industry and Commerce will play an important role in promoting the healthy development of the private economy and the healthy growth of private economic personnel, strengthen the ideological and political construction of operators of private economic organizations, guide private economic organizations to operate in accordance with the law, and improve the level of serving the private economy.

Article 8　Strengthen publicity and reporting on the advanced deeds of private economic organizations and their operators, support private economic organizations and their operators to participate in the selection and commendation, guide the formation of a social environment that respects labor, creation, and entrepreneurs, and create an atmosphere in which the whole society cares about, supports and promotes the development of the private economy.

Article 9　The state shall establish and improve the statistical system of the private economy, conduct statistical analysis of the development of the private economy, and release relevant information regularly.

Chapter 2 Fair Competition

Article 10　The state implements a national unified negative list system for market access. All types of economic organizations, including private economic organizations, can enter equally in accordance with the law in areas other than the negative list of market access.

Article 11　People's governments at all levels and their relevant departments shall implement the fair competition review system, formulate policies and measures involving the production and operation activities of business entities, and shall undergo fair competition review, and regularly evaluate, clean up and abolish policies and measures containing content hindering the unified national market and fair competition to ensure that private economic organizations participate in market competition fairly.

The market supervision and management department is responsible for accepting reports on policies and measures that violate the fair competition review system and dealing with it in accordance with the law.

Article 12　The state guarantees that private economic organizations can use various production factors and public service resources such as funds, technology, human resources, data, land and other natural resources equally in accordance with the law, and applies the national policy to support development.

Article 13　People's governments at all levels and their relevant departments shall treat private economic organizations equally in accordance with their statutory powers when formulating and implementing policies and measures in terms of government fund arrangements, land supply, pollutant emission indicators, public data opening, qualification permits, standard formulation, project application, professional title assessment, excellent evaluation, human resources, etc.

Article 14　Public resource trading activities shall be open, transparent, fair and just, and all types of economic organizations, including private economic organizations, should be treated equally in accordance with the law.

Unless otherwise provided by law, public resource transactions such as bidding and government procurement shall not restrict or exclude private economic organizations.

Article 15　Anti-monopoly and anti-unfair competition law enforcement agencies shall, in accordance with their responsibilities and powers, prevent and stop monopoly, unfair competition behaviors in market economic activities and abuse of administrative power to exclude or restrict competition, and provide a good market environment for the business activities of private economic organizations.

Chapter 3 Investment and Financing Promotion

Article 16　Support private economic organizations to participate in major national strategies and major projects. Support private economic organizations to invest and start businesses in strategic emerging industries, future industries and other fields, encourage the transformation and upgrading of traditional industries, and participate in the investment and construction of modern infrastructure.

Article 17　The relevant departments of the State Council shall coordinate the research and formulation of policies and measures to promote private economic investment in accordance with major national development strategies, development plans, industrial policies, etc., release information on major projects to encourage private economic investment, and guide key areas of private economic investment.

Private economic organizations shall invest in and build fixed asset investment projects that conform to the national strategic direction and enjoy national support policies in accordance with the law.

Article 18　Support private economic organizations to revitalize existing assets through various means, improve reinvestment capabilities, and improve asset quality and efficiency.

People's governments at all levels and their relevant departments support private economic organizations in participating in government and social capital cooperation projects. Government and social capital cooperation projects should reasonably set the rights and obligations of both parties, and clarify the ways of obtaining investment income, risk sharing mechanism, dispute and dispute resolution methods, etc.

Article 19　People's governments at all levels and their relevant departments provide efficient and convenient investment services to private economic organizations in project promotion and docking, preliminary work and construction approval matters, factor acquisition and government investment support.

Article 20:　The relevant departments of the State Council shall play the incentive and restraint role of monetary and credit policy tools in accordance with their duties, implement differentiated supervision on financial institutions providing financial services to small and micro private economic organizations in accordance with market-oriented principles, urge and guide financial institutions to reasonably set up tolerance for non-performing loans, establish and improve due diligence exemption mechanisms, improve professional service capabilities, and improve the level of providing financial services to private economic organizations.

Article 21　Banking financial institutions and local financial organizations shall accept mortgaged and pledged items that meet the needs of loan business in accordance with laws and regulations, and provide private economic organizations with pledged loans such as accounts receivable, warehouse receipts, equity, intellectual property rights, etc.

People's governments at all levels and their relevant departments shall provide support and convenience for the registration, valuation, transaction circulation, information sharing, etc. of movable property and rights pledge registration, valuation, transaction circulation, information sharing, etc.

Article 22　The state promotes the construction and improvement of a market-oriented sharing mechanism for financing risks of private economic organizations, supports banking financial institutions and financing guarantee institutions to expand business cooperation in an orderly manner, and jointly serve private economic organizations.

Article 23　Financial institutions shall develop and provide financial products and services suitable for the characteristics of the private economy in accordance with the law and compliance with the principles of market-oriented and sustainable development, provide convenient conditions for financing for private economic organizations with good credit, and enhance the adaptability of credit supply, loan cycle and financing needs and fund use cycles of private economic organizations.

Article 24　Financial institutions shall treat private economic organizations equally in terms of credit, credit management, risk control management, service charges, etc.

If a financial institution violates the agreement with the borrower of a private economic organization and unilaterally suspends the issuance of loans or recovers the loans in advance, it shall bear the liability for breach of contract in accordance with the law.

Article 25:　Improve the multi-level capital market system and support qualified private economic organizations to obtain direct financing equally through issuance of stocks, bonds, etc.

Article 26　Establish and improve a credit information collection and sharing mechanism to facilitate private economic organizations to obtain financing from financial institutions.

Support credit reporting agencies to provide credit reporting services for financing private economic organizations, support credit rating agencies to optimize the rating methods of private economic organizations, and increase the effective supply of credit ratings.

Chapter 4 Science and Technology Innovation

Article 27　The state encourages and supports private economic organizations to play an active role in the development of new quality productive forces. Guide private economic organizations to strengthen basic and cutting-edge research in accordance with national strategic needs, industry development trends and world science and technology frontiers, develop key core technologies, common basic technologies and cutting-edge cross-technology technologies, and encourage scientific and technological innovation to generate new industries, new models and new momentum.

Guide non-profit funds to fund private economic organizations in accordance with the law to carry out basic research, cutting-edge technology research and social welfare technology research.

Article 28:　Support private economic organizations to participate in the research and development of digital common technologies and the construction of data element markets in accordance with the law, use data reasonably in accordance with the law, develop and utilize open public data resources in accordance with the law, enhance the sharing and universality of data elements, and give full play to the role of data empowerment.

Article 29:　Support private economic organizations to participate in national scientific and technological research projects, support capable private economic organizations to take the lead in undertaking major technical research tasks, open up major national scientific research infrastructure to private economic organizations, support the open sharing of public research and development platforms and common technology platforms, provide equal services for technological innovation of private economic organizations, encourage all types of enterprises and universities, research institutes, vocational schools and private economic organizations to innovate cooperation mechanisms, carry out technological exchanges and results transfer and transformation, and promote the deep integration of industry, academia and research.

Article 30　The state guarantees that private economic organizations participate in standard formulation work in accordance with the law and strengthens information disclosure and social supervision of standard formulation.

The state provides services and conveniences for private economic organizations in infrastructure, technology verification, standards and specifications, quality certification, inspection and testing, intellectual property rights, demonstration applications, etc.

Article 31　Support private economic organizations to strengthen the application of new technologies, carry out application experiments of new technologies, new products, new services, and new models, give full play to the role of technology markets and intermediary service institutions, and promote the application and promotion of scientific and technological achievements through intellectual property pledge, venture capital and other means.

Private economic organizations are encouraged to voluntarily carry out technical cooperation based on business rules during the investment process. The conditions for technical cooperation are determined by the investment parties in consultation and determination in accordance with the principle of fairness.

Article 32:　Private economic organizations are encouraged to actively cultivate and use knowledge-based and skilled innovative talents, cultivate and use high-skilled talents in key positions and key processes, and promote the construction of the industrial workers' team.

Article 33　The state strengthens the protection of original innovations of private economic organizations and their operators. Increase the protection of intellectual property rights for innovative achievements, implement a punitive compensation system for intellectual property infringement, and punish illegal acts such as infringement of trademark rights, patent rights, copyright infringement, commercial secrets, counterfeiting and confusion in accordance with the law.

Strengthen regional and departmental cooperation in intellectual property protection, and provide private economic organizations with services such as rapid coordinated protection of intellectual property rights, diversified dispute resolution, rights protection assistance, overseas intellectual property dispute response guidance and risk warning services.

Chapter 5 Standardized operation

Article 34:　The organizations and party members of the Communist Party of China in private economic organizations shall carry out party activities in accordance with the Constitution of the Communist Party of China and relevant party regulations, and give full play to the political leading role of party organizations in promoting the healthy development of private economic organizations and the role of party members as pioneers and exemplary.

Article 35　Private economic organizations should focus on the overall situation of national work and actively play a role in developing the economy, expanding employment, improving people's livelihood, and scientific and technological innovation, and contribute to meeting the people's growing needs for a better life.

Article 36:　The production and operation activities of private economic organizations shall abide by laws and regulations on labor employment, production safety, occupational health, social security, ecological environment, quality standards, intellectual property rights, network and data security, fiscal and taxation, finance, etc., and shall not hinder the market and financial order, make profits by means of bribery and fraud, destroy the ecological environment, and damage the legitimate rights and interests of workers and the public interests of society.

State organs shall supervise and manage the production and operation activities of private economic organizations in accordance with the law.

Article 37　Support private capital to serve economic and social development, improve capital behavior systems and rules, regulate and guide the healthy development of private capital in accordance with the law, and maintain the socialist market economic order and social public interests. Support private economic organizations to strengthen risk prevention and management, encourage private economic organizations to strengthen their main business and improve their core competitiveness.

Article 38　Private economic organizations should improve their governance structure and management systems, standardize the behavior of operators of private economic organizations, strengthen internal supervision, and achieve standardized governance. Private economic organizations with conditions should be encouraged to establish and improve the modern enterprise system with Chinese characteristics.

Trade unions and other mass organizations in private economic organizations carry out work and activities in accordance with the law and regulations, strengthen ideological and political guidance for employees, safeguard the legitimate rights and interests of employees, play a role in democratic management of enterprises, improve the collective wage negotiation system for enterprises, and promote the construction of harmonious labor relations.

Article 39　The state promotes the construction of a system and mechanism for the prevention and control of corruption at the source of private economic organizations, supports and guides private economic organizations to establish and improve internal audit systems, strengthen the prevention and control of corruption risks, promotes private economic organizations to improve their level of business management in accordance with the law, and promptly prevent, discover and manage illegal and irregular issues in operations.

Private economic organizations should strengthen legal education for staff and create an organizational culture that is honest, honest, law-abiding and compliant.

Article 40　Private economic organizations shall establish an independent and standardized financial system in accordance with the law, distinguish the production and operation income and expenditure of private economic organizations from the personal income and expenditure of private economic organizations operators, realize the separation of private economic organizations' property and private economic organizations' personal property, strengthen financial management, standardize accounting, and prevent financial fraud.

Article 41:　Support private economic organizations to promote employees to share development results by strengthening skills training, expanding employment absorption, and improving wage distribution systems.

Article 42:　Explore the establishment of a social responsibility evaluation system and incentive mechanism for private economic organizations, and guide private economic organizations to voluntarily participate in public welfare and charity, emergency disaster relief and other activities.

Article 43:　Private economic organizations and their operators shall abide by the laws of the country or region when investing and operating overseas, respect local customs and cultural traditions, safeguard the national image, and shall not engage in activities that harm national security and national interests.

Chapter 6 Service Guarantee

Article 44:　State organs and their staff shall perform their duties in accordance with the law in promoting the development of the private economy. State organs and private economic organization operators shall abide by rules and regulations in their work interactions and maintain integrity and integrity.

People's governments at all levels and their relevant departments shall establish a smooth and effective government-enterprise communication mechanism, listen to the opinions and suggestions of various economic organizations, including private economic organizations, and solve the reasonable problems they reflect.

Article 45:　When state organs formulate laws, regulations, rules and other normative documents and judicial interpretations closely related to the production and operation activities of business entities, or make relevant major decisions, they should pay attention to listening to the opinions and suggestions of various economic organizations, industry associations and chambers of commerce, including private economic organizations; before implementation, necessary adaptation adjustment periods shall be set aside according to actual conditions.

Article 46.　People's governments at all levels and their relevant departments shall promptly disclose to the public the scope of application, standards, conditions and application procedures for preferential policies involving the private economy, and handle enterprise-related matters efficiently and conveniently.

Article 47　People's governments at all levels and their relevant departments shall formulate policies to encourage private economic organizations to start businesses, provide public services, and encourage entrepreneurship to drive employment.

Individual industrial and commercial households can voluntarily transform into enterprises. Market supervision and management departments, tax authorities and relevant departments provide guidance and convenience for individual industrial and commercial households to transform into enterprises.

Article 48　The registration authority shall provide registration services such as establishment, change, and cancellation in accordance with the law, compliant, standardized and unified, open and transparent, convenient and efficient, to reduce the cost of entering and exiting the market of business entities.

Article 49　Support and encourage colleges and universities, research institutes, vocational schools, public training bases and various vocational skills training institutions to innovate talent training models, strengthen vocational education and training, and cultivate professional talents and industrial workers who meet the needs of high-quality development of the private economy.

The human resources and social security departments shall establish and improve the human resources service mechanism, build a platform for employment and job hunting information, and provide convenience for private economic organizations to recruit and employ. People's governments at all levels and their relevant departments shall improve talent incentives and service guarantee policies and measures, open up channels for professional title evaluation of private economic organizations, and provide support for private economic organizations to introduce and cultivate high-level and scarce talents.

Article 50　Administrative organs adhere to administration according to law. Administrative law enforcement activities should avoid or reduce the impact on the normal production and operation activities of private economic organizations, and respond and deal with their reasonable and legal claims in a timely manner.

Article 51　Administrative penalties for illegal acts of private economic organizations and their operators shall be implemented in accordance with the same principles as other economic organizations. If administrative penalties or other measures are required for illegal acts in accordance with the law, they shall be equivalent to the facts, nature, circumstances and degree of social harm of the illegal acts. If illegal acts have the circumstances of lenient, mitigation or non-punishment as stipulated in the Administrative Penalty Law of the People's Republic of China, they shall be lenient, mitigation or non-punishment in accordance with the provisions.

Article 52　People's governments at all levels and their relevant departments promote the sharing and mutual recognition of regulatory information, implement hierarchical and classified supervision based on the credit status of private economic organizations, and improve supervision efficiency. In addition to implementing full coverage of key supervision in accordance with laws and regulations such as public safety and people's life and health, administrative inspections in the field of market supervision shall be carried out by randomly selecting inspection objects and randomly selecting law enforcement inspectors, and the random inspection matters and investigation results will be disclosed to the public in a timely manner. Establish and improve a mechanism for handling complaints and reports of administrative law enforcement violations to protect the legitimate rights and interests of private economic organizations and their operators.

Article 53　The judicial administrative department shall establish a communication mechanism for administrative law enforcement demands involving enterprises, organize administrative law enforcement inspections, strengthen supervision of administrative law enforcement activities, and promptly correct improper administrative law enforcement behaviors.

Article 54:　Improve the system of punishment for breach of trust and credit repair. When implementing the punishment for breach of trust, appropriate punishment measures shall be taken in accordance with laws, regulations and relevant provisions, and based on the nature and severity of the breach of trust acts.

If private economic organizations and their operators correct their breach of trust, eliminate adverse effects, and meet the conditions for credit repair, they may apply for credit repair. Relevant state organs shall promptly lift the punishment measures in accordance with the law, remove or terminate the disclosure of breach of trust information, and achieve coordinated repair on relevant public credit information platforms.

Article 55　Establish and improve a diversified resolution mechanism for conflicts and disputes to facilitate private economic organizations to safeguard their legitimate rights and interests.

The judicial administrative department organizes and coordinates relevant institutions and legal consulting experts such as lawyers, notarization, judicial appraisal, grassroots legal services, people's mediation, commercial mediation, arbitration and other relevant institutions and legal consulting experts to participate in the resolution of disputes involving private economic organizations, and provide targeted legal services to private economic organizations.

Article 56　The state supports and guides private economic organizations to carry out investment and operation activities overseas in accordance with the law, improve overseas interest protection mechanisms, and safeguard the legitimate rights and interests of private economic organizations and their operators overseas.

Chapter 7 Protection of Rights and Interests

Article 57　The personal rights, property rights, and other legitimate rights and interests of private economic organizations and their operators are protected by law and may not infringe on them.

Article 58　The reputation rights, honor rights and personal rights of private economic organizations and their operators, and the privacy rights and personal information of private economic organizations and operators shall be protected by law.

No unit or individual shall use the Internet and other communication channels to maliciously infringe on the personal rights and interests of private economic organizations and their operators by insulting, slandering, etc. Internet service providers shall strengthen the management of network information content in accordance with relevant laws and regulations, establish and improve complaint and reporting mechanisms, and promptly deal with illegal information that maliciously infringes on the legitimate rights and interests of the parties, and report to the relevant competent authorities.

Private economic organizations and their operators whose personal rights and interests have been maliciously infringed have the right to apply to the people's court to take measures to order the perpetrator to stop the relevant behavior in accordance with the law. If the personal rights and interests of private economic organizations and their operators are maliciously infringed, causing actual losses to the production, operation, investment and financing activities of private economic organizations, the infringer shall bear the liability for compensation in accordance with the law.

Article 59:　When state organs and their staff conduct investigations in accordance with the law or require assistance in the investigation, they shall avoid affecting normal production and operation activities. The implementation of compulsory measures to restrict personal freedom shall be carried out strictly in accordance with statutory authority, conditions and procedures.

Article 60:　Expropriation and expropriation of property shall be carried out strictly in accordance with statutory powers, conditions and procedures.

For the needs of public interests, if property is expropriated or requisitioned in accordance with the law, fair and reasonable compensation shall be given.

Article 61:　When seizure, seize or freeze the property involved in the case, the statutory authority, conditions and procedures shall be followed, and the illegal gains, other property involved in the case shall be strictly distinguished from illegal assets and legal property, the property of private economic organizations and the personal property of the operator of the private economic organization, the property of the person and the property of the non-case person shall not exceed the authority, scope, amount or time limit, seize or freeze property. The property involved in the case that is sealed or seized shall be taken necessary storage measures.

Article 62:　When handling cases, economic disputes and economic crimes should be strictly distinguished; if production and operation activities do not violate the provisions of the Criminal Law, they shall not be punished as crimes; for criminal cases with unclear facts and insufficient evidence, the case shall be revoked, prosecuted, or acquitted in accordance with the law.

It is prohibited to use administrative or criminal means to illegally interfere in economic disputes.

Article 63　If ​​a case requires law enforcement in other places, the statutory authority, conditions and procedures shall be abide by. If there is a dispute between state organs over the jurisdiction of the case, negotiation may be conducted. If no negotiation is reached, a common superior authority shall be requested to make a decision, and the provisions shall be followed if otherwise provided by law.

Standardize administrative law enforcement behaviors in other places and establish and improve the administrative law enforcement assistance system in other places.

Article 64 If　private economic organizations and their operators have objections to whether production and operation activities are illegal or not, as well as compulsory measures implemented by state organs, they may report the situation and appeal to the relevant authorities in accordance with the law, and apply for administrative reconsideration and file a lawsuit in accordance with the law.

Article 65:　The procuratorate shall implement legal supervision of litigation activities involving private economic organizations and their operators in accordance with the law, and promptly accept and review relevant complaints and accusations. If any illegal situation is found, it shall put forward corrective opinions in accordance with the law.

Article 66　State organs, public institutions, and state-owned enterprises shall pay accounts to private economic organizations in a timely manner in accordance with the law or in accordance with the contract. They shall not refuse or delay payment of accounts of private economic organizations on the grounds of personnel changes, performing internal payment procedures, or waiting for completion acceptance approval, final accounts audit, etc. without the agreement in the contract; unless otherwise provided by laws and administrative regulations, audit results should not be mandatory.

Audit agencies shall audit and supervise the payment of accounts paid by state organs, public institutions and state-owned enterprises in accordance with the law.

Article 67　When large enterprises purchase goods, projects, services, etc. from small and medium-sized private economic organizations, they shall reasonably agree on the payment deadline and pay accounts in a timely manner. They shall not receive third-party payments as a condition for paying accounts to small and medium-sized private economic organizations.

The people's courts will improve the coordination mechanism for the trial and execution of cases with arrears of accounts owed by small and medium-sized private economic organizations, and promote the timely filing, trial and execution of cases in accordance with the law. Relevant cases that meet the conditions can be mediated first to protect the legitimate rights and interests of small and medium-sized private economic organizations.

Article 68.　Local people's governments at or above the county level shall strengthen the payment guarantee work of payment, prevent and clear out the accounts arrears of private economic organizations; strengthen budget management, and government procurement projects shall arrange budgets and strictly implement them in accordance with the budget; strengthen overall guidance on the disposal of arrears of accounts, encourage all parties to negotiate and resolve disputes, and organize consultation and mediation for major differences. Consultation and mediation shall play the role of organizations such as the Federation of Industry and Commerce, Lawyers' Associations.

Article 69.　Local people's governments at all levels and their relevant departments shall fulfill their policy commitments to private economic organizations in accordance with the law and contracts concluded with private economic organizations. They shall not breach or break the contract on the grounds of administrative division adjustments, government elections, organization or function adjustments, and relevant personnel replacements.

If policy commitments and contractual agreements need to be changed due to national interests and social public interests, they shall be carried out in accordance with statutory powers and procedures, and the losses suffered by private economic organizations shall be compensated for.

Chapter 8 Legal Responsibilities

Article 70　If any of the following circumstances violates the provisions of this Law, the competent authority shall order the correction and cause adverse consequences or impacts, the punishment shall be imposed in accordance with the law:

(1) Policy measures have not been introduced without fair competition review or without fair competition review.

(2) Restrict or exclude private economic organizations from participating in bidding and government procurement in public resource transactions.

Article 71　If an off-site law enforcement is carried out in violation of the provisions of this Law, the competent authority shall order the correction and cause adverse consequences or impacts, and shall be punished in accordance with the law.

Article 72:　If the expropriation, expropriation, seizure, seizure, freezing and other measures violate the provisions of this Law, the competent authority shall order the correction and if the losses are caused, compensation shall be given in accordance with the law; if adverse consequences or impacts are caused, punishment shall be given in accordance with the law.

Article 73 If　state organs, institutions, and state-owned enterprises refuse or delay payment of accounts of private economic organizations in violation of laws, administrative regulations or contractual agreements, and local people's governments at all levels and their relevant departments fail to fulfill their policy commitments to private economic organizations in accordance with the law and contracts concluded in accordance with the law, the competent authority shall correct the matter and compensate them in accordance with the law if the losses are caused; if adverse consequences or impacts are caused, they shall be punished in accordance with the law.

If a large enterprise violates the provisions of laws and administrative regulations and refuses or delays in paying accounts for small and medium-sized private economic organizations, it shall be punished in accordance with relevant laws and administrative regulations.

Article 74:　If an administrative penalty is imposed on violation of the provisions of this Law and infringes upon the legitimate rights and interests of private economic organizations and their operators, and other laws and regulations shall be subject to such provisions; if a property loss or personal injury is caused, civil liability shall be borne in accordance with the law; if a crime is constituted, criminal liability shall be pursued in accordance with the law.

Article 75:　If a private economic organization and its operators violate the provisions of laws and regulations, the competent authority shall order the correction and impose administrative penalties in accordance with the law; if a property loss or personal injury is caused, civil liability shall be borne in accordance with the law; if a crime is constituted, criminal liability shall be pursued in accordance with the law.

Article 76 If　a private economic organization and its operators use fraud and improper means to obtain commendation and preferential policies, they shall withdraw the policy benefits that have been commended and honored, cancelled, and punish them in accordance with the law; if a crime is constituted, criminal liability shall be pursued in accordance with the law.

Chapter 9 Attachment

Article 77　The private economic organization referred to in this Law refers to a profit-making legal person, non-legal person organization and individual industrial and commercial household established in accordance with the law by Chinese citizens or actually controlled by Chinese citizens, as well as a profit-making legal person or non-legal person organization controlled or actually controlled by the aforementioned organizations.

If a private economic organization involves foreign investment, the relevant provisions of foreign investment laws and regulations shall also be subject to the relevant provisions of foreign investment laws and regulations.

Article 78　This Law shall come into force on May 20, 2025.

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