Private Economy Promotion Law: The country implements a national unified market access negative list system.

Xinhua News Agency, Beijing, April 30 (Xinhua) - People's Republic of China Private Economy Promotion Law (Passed at the 15th meeting of the 14th National People's Congress Standing Committee on April 30, 2025) Contents Chapter 1 General Provisions Chapter 2 Fair Competition Chapter 3 Investment and Financing Promotion Chapter 4 Technological Innovation Chapter 5 Standardized Operation Chapter 6 Service Guarantee Chapter 7 Rights Protection Chapter 8 Legal Liability Chapter 9 Supplementary Provisions Chapter 1 General Provisions Article 1: In order to optimize the development environment of the private economy, ensure the fair participation of various economic organizations in market competition, promote the healthy development of the private economy and the healthy growth of private entrepreneurs, construct a high-level socialist market economy system, and give full play to the important role of the private economy in the national economy and social development, this law is formulated according to the Constitution. Article 2: The promotion of the development of the private economy shall adhere to the leadership of the Communist Party of China, focus on the people, adhere to the socialist system with Chinese characteristics, and ensure the correct political orientation of the development of the private economy. The state adheres to and improves the socialist basic economic system with public ownership as the mainstay and the common development of diverse forms of ownership, distribution according to work with multiple distribution methods coexisting, and the socialist market economy system, etc.; it is unwavering in consolidating and developing the public ownership economy, unwaveringly encouraging, supporting, and guiding the development of the non-public ownership economy; giving full play to the decisive role of the market in resource allocation, and better playing the role of the government. Article 3: The private economy is an important part of the socialist market economy, a dynamic force for promoting China's modernization with Chinese characteristics, an important foundation for high-quality development, and an important force for promoting the comprehensive establishment of a socialist modernized strong country and realizing the great rejuvenation of the Chinese nation. Promoting the sustained, healthy, and high-quality development of the private economy is a major long-term policy that the country adheres to. The state adheres to encourage, support, and guide the development of the private economy in accordance with the law, and play a better role in guaranteeing the fundamental, stabilizing expectations, and long-term benefits of the rule of law. 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 as other types of economic organizations. Article 4: The State Council and local governments at or above the county level shall incorporate the promotion of the development of the private economy into the national economy and social development planning, establish a coordination mechanism for promoting the development of the private economy, formulate and improve policies and measures, and coordinate the resolution of major issues in the development of the private economy. The development and reform departments of the State Council are responsible for overall coordination in promoting 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 governments at or above the county level shall carry out the work of promoting the development of the private economy in accordance with laws and regulations and the division of responsibilities determined by the local people's governments at their respective levels. Article 5: Private economic organizations and their operators shall adhere to the leadership of the Communist Party of China, uphold the socialist system with Chinese characteristics, and actively participate in the construction of a socialist modernized strong country. The state strengthens the construction of operators in private economic organizations, strengthens ideological and political guidance, and plays an important role in economic and social development; fosters and promotes the entrepreneurial spirit, guides operators of private economic organizations to practice socialist core values, love their country and work, operate in accordance with the law, innovate and create, and contribute to society, firmly positioning themselves as builders of socialism with Chinese characteristics, and promoters of Chinese-style modernization. Article 6: Private economic organizations and their operators engaged in production and operation activities shall abide by laws and regulations, observe social ethics and business ethics, be honest and trustworthy, compete fairly, fulfill social responsibilities, protect the legitimate rights and interests of workers, safeguard national interests and public interests, and accept government and social supervision. Article 7: Chambers of commerce play an important role in promoting the healthy development of the private economy and the healthy growth of private entrepreneurs, strengthen the ideological and political construction of operators in private economic organizations, guide private economic organizations to operate according to the law, and improve the level of service to the private economy. Article 8: Strengthen the publicity and reporting of advanced deeds such as innovation and creation by private economic organizations and their operators, support private economic organizations and their operators to participate in selection and commendation, guide the formation of a social environment that respects labor, creativity, and entrepreneurs, and create an atmosphere in which all of society cares, supports, and promotes the development of the private economy. Article 9: The state establishes a sound statistical system for the private economy, conducts statistical analysis of the development of the private economy, and regularly publishes relevant information. Chapter 2 Fair Competition Article 10: The state implements a nationwide unified market access negative list system. In areas outside the market access negative list, various economic organizations, including private economic organizations, can enter equally according to the law. Article 11: Various levels of people's governments and their relevant departments implement a fair competition review system, and policies and measures involving the production and operation activities of business entities shall undergo fair competition review, be evaluated regularly, promptly clean up and abolish policies and measures that contain content that hinders the unified national market and fair competition, and ensure that private economic organizations participate fairly in market competition. The market supervision and management department is responsible for receiving reports on violations of the fair competition review system policies and measures, and handling them in accordance with the law. Article 12: The state guarantees that private economic organizations have equal access to and use of various production factors and public service resources such as funds, technology, manpower, data, land, and other natural resources, and equally apply policies that support national development according to the law. Article 13: People's governments at all levels and their relevant departments shall, in accordance with statutory authority, treat private economic organizations equally in the formulation and implementation of policies and measures in government funding arrangements, land supply, emission standards, public data opening, qualification licensing, standard formulation, project declaration, title evaluation, commendation, human resources, and other aspects. Article 14: Public resource trading activities shall be open, transparent, fair, and just, and shall treat various economic organizations, including private economic organizations, equally according to the law. Except as otherwise provided by law, public resource transactions such as bidding, government procurement, etc., 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, prevent and stop monopolistic and unfair competition behaviors in market economic activities, and abuse administrative power to exclude or restrict competition.Handle the behavior in accordance with the law and provide a good market environment for private economic organizations.Chapter Three: Promotion of Investment and Financing Article 16: Support private economic organizations to participate in national major strategies and major projects. Support private economic organizations to invest and start businesses in strategic emerging industries, future industries, encourage traditional industry technological transformation and upgrading, and participate in modern infrastructure investment and construction. Article 17: Relevant departments of the State Council will formulate policies and measures to promote private economic investment based on national major development strategies, development plans, industrial policies, etc. They will release information on major projects to encourage private economic investment and guide investment in key areas. Private economic organizations that invest in and construct fixed asset investment projects that align with national strategic directions are entitled to enjoy state support policies in accordance with the law. Article 18: Support private economic organizations to revitalize existing assets through various means, improve reinvestment capacity, enhance asset quality and efficiency. All levels of government and their relevant departments support private economic organizations to participate in government and social capital cooperation projects. Government and social capital cooperation projects should reasonably define the rights and obligations of both parties, clarify investment return mechanisms, risk-sharing mechanisms, dispute resolution methods, etc. Article 19: All levels of government and their relevant departments should provide standardized, efficient and convenient services for private economic organizations in investment promotion, project matchmaking, preliminary work and approval, resource acquisition, and government investment support. Article 20: Relevant departments of the State Council will utilize monetary policy tools and macro credit policy to provide incentive and constraint effects for financial institutions to provide differentiated financial services to small and micro private economic organizations. They will supervise and guide financial institutions to reasonably set tolerances for non-performing loans, establish sound due diligence mechanisms, enhance professional service capabilities, and improve the level of financial services provided to private economic organizations. Article 21: Banking financial institutions and others, in accordance with laws and regulations, accept guarantee methods that meet the requirements of loan business and provide accounts receivable, warehouse receipts, equity, intellectual property rights and other rights as collateral for loans to private economic organizations. All levels of government and their relevant departments should provide support and facilitation for movable and rights pledge registration, valuation, trading circulation, information sharing, etc. Article 22: The state promotes the market-based risk-sharing mechanism for financing of private economic organizations, supports orderly expansion of business cooperation between banking financial institutions and financing guarantee institutions to jointly serve private economic organizations. Article 23: Financial institutions, under legal compliance, developing and providing financial products and services suitable for the characteristics of private economics based on marketization and sustainable development principles, provide favorable conditions for financing for private economic organizations with good credit, enhance the adaptability of credit supply, loan periods and financing needs of private economic organizations, and improve the accessibility and convenience of financial services. Article 24: Financial institutions should treat private economic organizations equally in credit granting, credit management, risk control management, and service fees. If financial institutions violate agreements with borrowing private economic organizations by unilaterally increasing loan conditions, suspending loan disbursements, or prematurely recalling loans, they shall bear legal responsibility for breach of contract. Article 25: Improve the multi-level capital market system, support qualified private economic organizations to obtain direct financing through stock issuance, bonds, etc. on an equal basis. Article 26: Establish a sound credit information collection and sharing mechanism, support credit reporting agencies to provide credit information services for financing of private economic organizations, support credit rating agencies to optimize the rating methods for private economic organizations, increase effective credit rating supply, and provide facilities for private economic organizations to obtain financing. Chapter Four: Technological Innovation Article 27: The state encourages and supports private economic organizations to play an active role in promoting technological innovation, cultivating new productive forces, and building a modern industrial system. Direct private economic organizations according to national strategic needs, industry development trends, and world technological frontiers to strengthen basic and frontier research,... (translation too long. Exceeded character limit. Contact me for the full translation)Innovative protection. Increase the protection of intellectual property rights of innovative achievements, implement a punitive compensation system for intellectual property infringement, and crackdown on illegal activities such as infringement of trademark rights, patent rights, copyright, infringement of trade secrets, counterfeiting and confusion in accordance with the law.Enhance regional and departmental collaboration in the protection of intellectual property rights, providing rapid collaborative protection of intellectual property rights, diverse dispute resolution, rights protection assistance, overseas intellectual property dispute response guidance, and risk warning services for private economic organizations. Chapter V Standardized Operation Article 34 The organizations and members of the Communist Party of China in private economic organizations shall carry out party activities in accordance with the Party Constitution and relevant party regulations, playing the political leadership role of party organizations and the exemplary role of party members in promoting the healthy development of private economic organizations. Article 35 Private economic organizations should actively play a role in promoting economic development, expanding employment, improving people's livelihoods, and technological innovation, contributing to meeting the increasing demand for a better life for the people. Article 36 Private economic organizations engaged in production and operation activities should abide by laws and regulations in various aspects such as labor employment, work safety, occupational health, social security, environmental protection, quality standards, intellectual property rights, network and data security, fiscal and taxation, and finance; they shall not seek improper benefits through bribery and fraud, shall not disrupt market and financial order, destroy the ecological environment, harm the legitimate rights and interests of workers, and public interests. 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 in serving economic and social development, improve the system and rules of capital behavior, regulate and guide the healthy development of private capital in accordance with the law, safeguard the socialist market economy order and public interests. Support private economic organizations in strengthening risk prevention and management, encourage them to focus on their main business, strengthen their industrial strength, and enhance their core competitiveness. Article 38 Private economic organizations should improve their corporate governance structure and management system, regulate the behavior of operators, strengthen internal supervision, achieve standard governance; establish and improve a democratic management system with the staff congress as the basic form in accordance with the law. Encourage eligible private economic organizations to establish and improve the system of modern enterprises with Chinese characteristics. Trade unions and other mass organizations in private economic organizations conduct activities in accordance with the law and regulations, strengthen the ideological and political guidance of workers, safeguard the legitimate rights and interests of workers, play a role in democratic management in enterprises, promote the improvement of the collective wage negotiation system in enterprises, and promote the establishment of harmonious labor relations. The organizational forms, organizational structures, and activity guidelines of private economic organizations are subject to the provisions of laws such as the Company Law of the People's Republic of China, the Partnership Enterprise Law of the People's Republic of China, and the Sole Proprietorship Enterprise Law of the People's Republic of China. Article 39 The state promotes the establishment of a system and mechanism for preventing and combating corruption at the source of private economic organizations, supports and guides private economic organizations to establish sound internal audit systems, strengthens the prevention and control of clean risk, promotes private economic organizations to enhance their level of operation and management in accordance with laws and regulations, and promptly prevent, discover, and deal with illegal and irregular issues in operation. Private economic organizations should strengthen the legal education of their employees and create a culture of honesty, integrity, and compliance. Article 40 Private economic organizations should strengthen financial management in accordance with the law, regulations, and the unified national accounting system, standardize accounting, prevent financial fraud, distinguish between the production and operation income and expenditure of private economic organizations and the personal income and expenditure of the operators of private economic organizations, and achieve the separation of property between private economic organizations and the personal property of their operators. Article 41 Support private economic organizations in promoting employee development through strengthening skills training, expanding employment opportunities, improving the wage distribution system, etc. Article 42 Explore the establishment of a social responsibility evaluation system and incentive mechanism for private economic organizations, encourage and guide private economic organizations to actively fulfill social responsibilities, voluntarily participate in public welfare and charity activities, emergency relief, etc. Article 43 Private economic organizations and their operators should abide by the laws of the countries or regions where they invest and operate overseas, respect local customs and cultural traditions, maintain the national image, and refrain from engaging in activities that harm national security and interests. Chapter VI Service Guarantee Article 44 State organs and their staff members shall perform their duties in accordance with the law when promoting the development of private economy. When government officials interact with operators of private economic organizations, they should observe discipline and law and maintain integrity. All levels of people's governments and their relevant departments shall establish smooth and effective communication mechanisms between government and enterprises, listen to opinions and suggestions from various economic organizations, including private economic organizations, and solve reasonable issues raised by them in a timely manner. Article 45 State organs shall formulate laws, regulations, rules, and other normative documents closely related to the production and operation activities of economic entities, the Supreme People's Court and the Supreme People's Procuratorate shall make relevant interpretations of specific application laws in judicial and procuratorial work, or make important decisions, and should pay attention to listening to opinions and suggestions from various economic organizations, industry associations, and commercial chambers, including private economic organizations; necessary adjustment periods should be provided based on the actual situation before implementation. According to the provisions of the Legislation Law of the People's Republic of China, laws, regulations, rules, and other normative documents closely related to the production and operation activities of economic entities and the specific application of laws in judicial and procuratorial work, without retroactivity, except for special provisions made to better protect the rights and interests of citizens, legal persons, and other organizations. Article 46 All levels of people's governments and their relevant departments shall promptly publicize the scope, standards, conditions, and application procedures of preferential policies related to economic entities to the society, provide convenience for private economic organizations to apply for relevant preferential policies. Article 47 All levels of people's governments and their relevant departments shall formulate policies to encourage entrepreneurship for private economic organizations, provide public services, and promote employment driven by entrepreneurship. Article 48 Registration authorities should provide registration services for various economic organizations, including private economic organizations, in a legal, compliant, standardized, transparent, and efficient manner, reducing market entry and exit costs. Individual industrial and commercial households may voluntarily transform into enterprises in accordance with the law. The registration authority, tax authority, and relevant departments shall provide guidance and facilitation for individual industrial and commercial households to transform into enterprises. Article 49 Encourage and support universities, research institutes, vocational schools, public training bases, and various vocational training institutions to innovate talent training models, and promote shared development for employees through enhanced skill training.Strengthen vocational education and training to cultivate professional talents and industrial workers that meet the high-quality development needs of the private economy.The Ministry of Human Resources and Social Security establishes a sound human resources service mechanism, builds a platform for employment and job seeking information docking, and provides convenience for private economic organizations to recruit and employ workers. Various levels of people's governments and their relevant departments improve talent incentive and service guarantee policies, smooth the title evaluation channels for private economic organizations, and provide support for the introduction and cultivation of high-level and scarce talents for private economic organizations. Article 50 Administrative organs adhere to the principle of administration according to law. When conducting law enforcement activities, administrative organs should avoid or minimize the impact on the normal production and operation activities of private economic organizations, and respond to and handle their reasonable and lawful demands in a timely manner. Article 51 Administrative penalties for illegal acts of private economic organizations and their operators should be implemented on the same principle as other economic organizations and their operators. If administrative penalties or other measures are legally necessary for illegal acts, they should be commensurate with the facts, nature, circumstances, and social harm of the illegal acts. If the illegal act falls under the circumstances of leniency, mitigation, or no punishment as provided in the "Administrative Penalty Law of the People's Republic of China," leniency, mitigation, or no punishment should be applied accordingly. Article 52 Various levels of people's governments and their relevant departments promote information sharing and mutual recognition of supervision, implement graded classification supervision based on the credit status of private economic organizations, and improve regulatory efficiency. In addition to key supervision that directly affects public safety, people's lives and health in special industries and key areas that are fully covered according to law and regulations, administrative inspections by relevant departments in the market supervision field should be conducted by randomly selecting inspection objects and randomly assigning law enforcement inspection personnel. The inspection items and results should be promptly disclosed to the public. For multiple inspection items on the same inspection object, efforts should be made to consolidate or include them in the scope of cross-department joint inspections. Article 53 Various levels of people's governments and their relevant departments establish and improve a mechanism for handling complaints and reports of administrative law enforcement violations, promptly accept and handle complaints and reports in accordance with the law, and protect the legitimate rights and interests of private economic organizations and their operators. The judicial administrative departments establish a communication mechanism for administrative law enforcement appeals involving enterprises, organize administrative law enforcement inspections, strengthen the supervision of administrative law enforcement activities, and promptly correct improper administrative law enforcement actions. Article 54 Improve the system of dishonesty punishment and credit restoration. When implementing dishonesty penalties, appropriate punitive measures should be taken according to laws, regulations, and relevant provisions, based on the facts, nature, and seriousness of the dishonest behavior. Private economic organizations and their operators who correct dishonest behavior, eliminate adverse effects, and meet the conditions for credit restoration may apply for credit restoration. Relevant state organs should promptly lift punitive measures in accordance with the law, remove or terminate the publication of dishonest information, and coordinate restoration on relevant public credit information platforms. Article 55 Establish a sound mechanism for resolving contradictions and disputes diversely to facilitate the protection of the legitimate rights and interests of private economic organizations. The judicial administrative departments organize and coordinate lawyers, notaries, judicial appraisers, grassroots legal services, people's mediation, commercial mediation, arbitration, and other related institutions and legal consultation experts to participate in the resolution of disputes involving private economic organizations, providing targeted legal services for private economic organizations. Article 56 Industry associations and chambers of commerce shall, in accordance with laws, regulations, and articles of association, play a coordinating and self-discipline role, promptly reflect industry demands, and provide information consultation, publicity and training, market expansion, rights protection, and dispute resolution services for private economic organizations and their operators. Article 57 The country adheres to a high level of opening up to the outside world, accelerates the construction of a new development pattern with domestic circulation as the main part and mutual promotion of domestic and international circulation, supports and guides private economic organizations to expand international exchanges and cooperation, legally and compliantly carry out investment and business activities overseas, strengthens comprehensive services such as legal, financial, and logistics overseas, improves overseas interest protection mechanisms, and safeguards the legitimate rights and interests of private economic organizations and their operators overseas. Chapter Seven Rights Protection Article 58 The personal rights, property rights, and autonomy rights of private economic organizations and their operators are protected by law, and no units or individuals may infringe upon them. Article 59 The naming rights, reputation rights, honor rights of private economic organizations, and the reputation rights, honor rights, privacy rights, personal information and other personal rights of private economic organization operators are protected by law. No units or individuals may use the Internet and other dissemination channels to maliciously infringe upon the personal rights of private economic organizations and their operators by means of insult or defamation. Network service providers should strengthen the management of network information content in accordance with relevant laws and regulations, establish and improve complaint and reporting mechanisms, promptly deal with illegal information that maliciously infringes on the legitimate rights and interests of the parties involved, and report to the relevant competent authorities. Private economic organizations and their operators have the right to apply for measures to compel the person to stop the relevant actions that infringed upon their personal rights in accordance with the law. If the malicious infringement on the personal rights of private economic organizations and their operators leads to actual losses in their production, operation, investment, financing, and other activities, the infringer shall bear legal liability for compensation. Article 60 State organs and their employees should avoid or minimize the impact on normal production and operation activities when conducting investigations or requesting assistance in accordance with the law. The implementation of coercive measures restricting personal freedom should strictly follow statutory authorities, conditions, and procedures. Article 61 The expropriation or requisition of property shall be strictly carried out in accordance with statutory authorities, conditions, and procedures. For the needs of public interest, if property is expropriated or requisitioned in accordance with the law, fair and reasonable compensation should be provided. No units may collect fees from private economic organizations in violation of laws and regulations, impose fines without legal basis, or allocate property to private economic organizations without legal or regulatory basis. Article 62 Sealing, seizure, and freezing of property involved in a case should comply with statutory authority, conditions, and procedures, strictly distinguish between illegal gains, other properties involved in the case and lawful property, property of private economic organizations and individual property of operators of private economic organizations, property of parties involved and property of non-parties, and should not exceed the authority, scope, amount, or time limit for sealing, seizure, or freezing of property. The property involved in sealing, seizure should be properly kept. Article 63 When handling cases, economic disputes and economic crimes should be strictly distinguished, and legal requirements for statute of limitations should be followed.The regulations; if the production and business activities do not violate the provisions of the Criminal Law, they shall not be prosecuted as a crime; if the facts are not clear, the evidence is insufficient, or the criminal responsibility is not pursued in accordance with the law, the case shall be revoked, not prosecuted, the trial terminated, or declared innocent in accordance with the law.Prohibition of using administrative or criminal means to illegally intervene in economic disputes. Article 64 Standardize cross-regional law enforcement behavior and establish a sound cross-regional law enforcement assistance system. When handling cases that require cross-regional law enforcement, legal authority, conditions, and procedures should be followed. In case of a dispute between state organs over jurisdiction of a case, consultation can be conducted. If no agreement can be reached through consultation, the matter shall be referred to a common superior authority for decision, or in accordance with other provisions of the law. It is prohibited to abuse powers for the purpose of economic interests, etc., to enforce cross-regional law enforcement. Article 65 Private economic organizations and their operators who have objections to the legality of their production and business activities or the mandatory measures taken by state organs can report the situation, appeal to relevant authorities, apply for administrative reconsideration, or initiate litigation in accordance with the law. Article 66 The procuratorial organs shall legally supervise litigation activities involving private economic organizations and their operators, promptly accept and review relevant complaints and accusations. If any illegal activities are found, legally challenging, correcting opinions, and procuratorial suggestions should be made. Article 67 State organs, institutions, and state-owned enterprises shall pay debts to private economic organizations in a timely manner in accordance with the law or contract agreements, and shall not refuse or delay payment of debts to private economic organizations based on personnel changes, internal payment processes, or in the absence of contract agreements. Except as otherwise provided by laws and administrative regulations, they shall not require an audit result as the basis for settlement. The auditing organs shall conduct audit supervision on the payment of debts by state organs, institutions, and state-owned enterprises to private economic organizations. Article 68 Large enterprises shall reasonably specify the payment terms and promptly pay debts to small and medium-sized private economic organizations for purchasing goods, projects, services, etc. They shall not make third-party payments a condition for paying debts to small and medium-sized private economic organizations. People's courts shall promptly file, hear, and enforce cases of overdue debts to small and medium-sized private economic organizations in accordance with the law, and mediate based on voluntary and legal principles to safeguard the legitimate rights and interests of small and medium-sized private economic organizations. Article 69 Local people's governments at or above the county level shall strengthen the payment guarantee work, prevent and clear the arrears of debts to private economic organizations, strengthen budget management, strictly implement government procurement projects according to approved budgets, coordinate and guide the settlement work of arrears, encourage parties to resolve disputes through negotiation when there are disputes, and mediate organizations with major disagreements. Business associations, bar associations, and other organizations should play a role in negotiation and mediation. Article 70 Local people's governments at all levels and their relevant departments shall fulfill policy commitments and contracts made to private economic organizations in accordance with the law, and shall not breach or terminate them due to adjustments in administrative divisions, changes in government leadership, organizational or functional adjustments, or changes in relevant personnel. If it is necessary to change policy commitments or contract agreements for the national interest or public interest, it shall be done in accordance with legal authority and procedures, and compensation shall be provided for the losses incurred by private economic organizations as a result. Chapter VIII Legal Responsibilities Article 71 If the following circumstances occur in violation of this Law, the competent authority shall order corrective action, and if it causes adverse consequences or influences, the responsible leaders and directly responsible personnel shall be subject to legal sanctions: (1) Policies and measures are enacted without undergoing fair competition review or without passing fair competition review; (2) Restrictions or exclusions are imposed on private economic organizations in public resource transactions such as bidding, tendering, and government procurement. Article 72 If measures such as requisition, expropriation, sealing, impounding, freezing, etc., are implemented in violation of legal provisions, the competent authority shall order corrective action. If losses are incurred, compensation shall be provided in accordance with the law, and if adverse consequences or influences are caused, the responsible leaders and directly responsible personnel shall be subject to legal sanctions. If cross-regional law enforcement is carried out in violation of legal provisions, the competent authority shall order corrective action, and if adverse consequences or influences are caused, the responsible leaders and directly responsible personnel shall be subject to legal sanctions. Article 73 If state organs, institutions, or state-owned enterprises violate legal provisions, administrative regulations, or contract agreements by refusing or delaying payment of debts to private economic organizations, and local people's governments and their relevant departments fail to fulfill policy commitments made to private economic organizations in accordance with the law or contracts, the competent authority shall take corrective measures. If losses are incurred, compensation shall be provided in accordance with the law, and if adverse consequences or influences are caused, the responsible leaders and directly responsible personnel shall be subject to legal sanctions. Large enterprises that violate legal provisions or contract agreements by refusing or delaying payment of debts to small and medium-sized private economic organizations shall bear legal responsibilities. Article 74 If violations of this Law infringe upon the legitimate rights and interests of private economic organizations and their operators and administrative penalties are imposed by other laws, regulations, the relevant provisions shall apply. If personal or property damage is caused, civil liability shall be borne in accordance with the law, and if a crime is constituted, criminal responsibility shall be pursued in accordance with the law. Article 75 If private economic organizations and their operators conduct production and business activities in violation of laws and regulations, the competent authority shall order corrective action, administer administrative penalties in accordance with the law, bear civil liability for personal or property damage, and pursue criminal responsibility in accordance with the law if a crime is constituted. Article 76 If private economic organizations and their operators use fraudulent or other unfair means to obtain honors, preferential policies, etc., they shall revoke the honors received and cancel the policy benefits enjoyed, and shall be punished according to the law. If a crime is constituted, criminal responsibility shall be pursued in accordance with the law. Chapter IX Supplementary Provisions Article 77 Private economic organizations referred to in this Law refer to profit-making legal persons, non-legal entities, and individual industrial and commercial households established in the territory of the People's Republic of China controlled or actually controlled by Chinese citizens, as well as profit-making legal persons and non-legal entities controlled or actually controlled by the aforementioned organizations. If private economic organizations involve foreign investment, relevant regulations of foreign investment laws and regulations shall apply at the same time. Article 78 This Law shall come into effect on May 20, 2025. (End) This article is from "Xinhua News Agency", GMTEight Editor: Liu Jiayin.