Judicial Guidelines to Back Private Economy
The Supreme People's Court (SPC) has released guidelines on implementing the law promoting the private economy, outlining judicial measures to ensure the smooth enforcement of China's first comprehensive legislation aimed at supporting private-sector growth.
The law, in effect since May 20, 2025, elevates long-standing policy commitments to legal obligations. The SPC's guidelines translate the law's provisions into operational rules for courts nationwide, aiming to address persistent challenges in market access, financing, contract enforcement and intellectual property protection.
It emphasizes accurately assessing the impact of market access liberalization in natural monopoly industries and the service sector on the validity of contracts, and rendering fair judgments in accordance with the law. It also calls for the dismantling of administrative and regional market barriers.
Courts are urged to strengthen anti-monopoly and anti-unfair competition enforcement, ensure fair access to financing, and prevent financial institutions from arbitrarily withdrawing loans.
Measures to speed up the resolution of overdue payment disputes and strengthen protection of high-tech intellectual property are also included.
To foster a healthy business environment, the SPC wants strict penalties imposed on internal corruption, collusion in bidding, and misuse of corporate control. The guidelines encourage improvements in corporate governance structures to prevent abuses that could undermine company growth.
The SPC highlights the need for fair, transparent and predictable judicial practices, as well as the importance of guiding enterprises to follow lawful operations. In addition, the court pledges to ensure that legal enforcement supports high-quality private-sector development.
Courts are urged to apply laws consistently, avoid arbitrary rulings, and align their judicial services with national economic strategies. By combining legislative authority with judicial clarity, the SPC aims to reinforce the private sector's role as a vital engine of China's economic growth.
