This study aims to examine the legislative background and primary contents of China’s "Private Sector Promotion Law" and elucidate how its implementation reshapes the local business environment in conjunction with China’s unique political and econ...
This study aims to examine the legislative background and primary contents of China’s "Private Sector Promotion Law" and elucidate how its implementation reshapes the local business environment in conjunction with China’s unique political and economic mechanisms. Amidst the dual challenges of intensifying U.S.-China strategic competition and a domestic structural growth slowdown, the Chinese economy is pursuing a qualitative transition through the construction of a "Unified National Market" and the cultivation of "New Quality Productive Forces." In response, the Chinese government has re-designated the private economy as a core driver of national development and enacted the "Private Sector Promotion Law," thereby elevating previously fragmented support policies to a formal legislative level.
This research defines the legal character of the Law as an institutional mechanism for securing "Strategic Policy Alignment" and a codified attempt to realize "Competitive Neutrality" between state-owned and private enterprises. The analysis focuses on the removal of market entry barriers, the equitable distribution of production factors, and procedural control mechanisms for protecting entrepreneurial rights, while exploring the resulting normative and practical implications.
Furthermore, the study identifies the structural gap between central macro-directives and local enforcement, as well as the "Promotion Tournament" mechanism inherent in the local bureaucracy, as pivotal factors determining the Law’s efficacy. Ultimately, this study diagnoses the opportunities and threats presented by the Law and presents strategic response measures for Korean firms operating in China, along with policy implications for the South Korean government.