China passes first private sector law amid escalating US tariff pressure

By Berk Kutay Gokmen

ISTANBUL - Chinese lawmakers adopted the country’s first law Wednesday to promote the private sector, a key component of the world’s second-largest economy, Xinhua News reported.

The move comes as China faces mounting pressure from the US, which recently imposed 245% tariffs on Chinese imports. Beijing responded with 125% tariffs on US goods, intensifying the trade dispute sparked by US President Donald Trump.

The Private Sector Promotion Law, passed by the Standing Committee of the National People's Congress (NPC), will take effect May 20.

Comprising 78 articles across nine chapters, the law addresses areas such as fair competition, investment and financing, innovation, regulatory oversight, service support, legal protection and liability.

Chinese President Xi Jinping also urged adapting to changing circumstances and focusing on long-term priorities.

He told officials to craft sound plans for China’s 2026–2030 economic and social development, as the country prepares to complete the final year of its 14th Five-Year Plan (2021 - 2025), according to Xinhua.