China’s top court showcases how landmark private sector law is being enforced



China’s Supreme People’s Court has released a series of court rulings to illustrate how a wide-ranging private sector law passed this year is safeguarding the rights and interests of entrepreneurs.

“The release of these cases demonstrates how the courts are applying the law to safeguard the private economy… and aims to boost public confidence – particularly among private business owners,” the court said in a recent statement.

The 12 rulings, drawn from courts at various levels across the country, are also intended to guide the judiciary in their efforts to improve legal protections for private sector development, the court added.

The move was reported on Tuesday by the People’s Daily, the ruling Communist Party’s mouthpiece, and came as Beijing seeks to restore private investor confidence amid economic headwinds, including a slowing economy and the US-China trade war.
Enacted on May 20, the Private Economy Promotion Law consists of 78 articles aimed at ensuring fair market competition, encouraging private sector participation in science and technology projects, and strengthening legal protections for businesses.

The rulings highlighted by China’s top court last week focused on equal treatment before the law, safeguarding innovation, protections for businesses engaged in international trade, and fostering the lawful, healthy growth of private companies.

Most of the cases involved disputes between private firms and state-backed entities. In one ruling, a small-to-medium-sized medical device manufacturer sued a state-backed hospital that had failed to pay nearly 3 million yuan (US$417,404) after purchasing diagnostic equipment.

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