On July 9, democratic politics column on Page 18 of the People’s Daily published an article signed by Lu Weiding, Vice Chairman of the All-China Federation of Industry and Commerce and Chairman of Wanxiang Group, titled “Guided by the Rule of Law, the Private Sector Has Great Potential.”

As the National 15th Five-Year Plan Outline called for, the government has been keeping implementing the Law on the Promotion of the Private Economy, improving the supporting legal, regulatory, and policy framework, and ensuring equal access for diverse legal factors of production and fair participation in market competition, through legal and institutional means, to offer effective protection of legitimate rights and interests. It has now been a full year since the Law on the Promotion of the Private Economy was promulgated and implemented. Over the past year or so, the law has taken effect and yielded tangible results, safeguarded the healthy development of the private economy and the healthy growth of private entrepreneurs, and further boosted confidence, resilience, and momentum in the development of the private economy.

The rule of law empowers development, and innovation leads the future. Under the joint guidance of an effective market and an active government, private enterprises must firmly seize the significant opportunities presented by the rule of law, transform the advantages of the rule of law into a driving force for development, continuously strengthen their core competitiveness, contribute to high-quality economic and social development through practical action and a sense of responsibility, and secure the initiative in development through high-level self-reliance and self-strengthening in science and technology. Innovation is the source of power for the high-quality development of the private economy. In today’s increasingly competitive global economy, private enterprises can only establish a firm foothold in the market through continuous innovation. The Law on the Promotion of the Private Economy includes a dedicated chapter on “Scientific and Technological Innovation,” providing comprehensive and multi-level institutional safeguards for scientific and technological innovation in private enterprises at the legal level. The current “transition period” marked by the shift from old to new growth drivers presents a window of opportunity for private enterprises to strengthen their internal capabilities and achieve success through innovation. They should focus their efforts on overcoming key core technological challenges, forge irreplaceable, cutting-edge technological capabilities, and win market recognition through the achievements of independent innovation to solidify the foundation for long-term development.

Build a high-quality industrial development ecosystem through collaborative innovation. The Law on the Promotion of the Private Economy encourages various entities to establish innovative cooperation mechanisms with private-sector organizations, promote in-depth integration among industry, academia, and research, and support the open sharing of public research and development platforms. At the institutional level, this law ensures that private enterprises have access to the necessary resources, platforms, and safeguards for scientific and technological innovation. Private enterprises should seize this opportunity to actively participate in building an efficient and seamless collaborative innovation system involving government, enterprises, and universities, and continue to explore new, diversified, and differentiated models of innovation cooperation. At the same time, it is recommended that innovation resources be further prioritized for private enterprises, granting them greater autonomy in leading researching and developing projects, and continuously strengthening the supply of core innovation factors such as funding and talent. By leveraging both market forces and government guidance, we can promote the deep integration of the innovation chain, industrial chain, capital chain and talent chain.

Compliant business operations ensure the steady and sustainable development of private enterprises. The Law on the Promotion of the Private Economy establishes clear boundaries and behavioral standards for compliant business operations, providing a stable and predictable legal framework for innovative business practices. This effectively reduces uncertainty in the development environment and fully unleashes the intrinsic drive for innovation and creativity within private enterprises. Private enterprises should seize this opportunity to define their development positioning, integrate their growth into the broader context of China’s modernization, and continuously create economic and social value through long-term compliance; they should continue to optimize corporate governance structures and management processes, improve the modern enterprise system with Chinese characteristics, strictly adhere to the principles of fair competition and integrity in business operations, strengthen defenses against corruption risks, and make “compliance” the bedrock for driving high-quality enterprise development.

In the process of implementing the Law on the Promotion of the Private Economy, the All-China Federation of Industry and Commerce should better fulfill its role as a bridge and link, promote the establishment of a dynamic mechanism for identifying and reporting hidden barriers, and help private enterprises participate on an equal footing in the division of labor within domestic and international industrial chains; establish a routine mechanism for reporting issues and evaluating policy effectiveness to promptly resolve difficulties encountered by enterprises during their development; strengthen the ideological and political education of operators in private economic organizations; guide private enterprises to operate in accordance with the law and regulations; and ensure that the rule of law truly serves as a safeguard for the high-quality development of private enterprises.

In this era, opportunities favor those who strive alongside our nation. The Law on the Promotion of the Private Economy has paved a legal pathway for private enterprises toward high-quality development. And Private enterprises will undoubtedly play an irreplaceable role as a vital force in the grand journey of advancing modernization with Chinese characteristics.

(by Lu Weiding, vice chairman of the All-China Federation of Industry and Commerce/director of Wanxiang Group)