Since the 18th National Congress of the Communist Party of China, China's guarantee for the development of the private economy has gone through the establishment of the principle of "no prohibition by law", the comprehensive implementation of the negative list system for market access, and the legislative promotion of the "Law of the People's Republic of China on the Promotion of the Private Economy". This reflects that the level of rule of law in the development of the private economy in China has continuously reached a new level. In 2013, the Third Plenum of the 18th Central Committee of the Communist Party of China explicitly proposed for the first time to "enable the market to play a decisive role in resource allocation", emphasizing that "private capital should be encouraged to enter any industry or field that is not explicitly prohibited by laws and regulations". This important statement breaks through the traditional administrative approval model and provides an institutional foundation for private enterprises to enter the market. In 2018, China fully implemented the negative list system for market access, clarifying the principle of "everything outside the list and within the policy", creating a more open and fair market environment for private enterprises. The negative list has been reduced from 328 items in the pilot version in 2016 to 117 items in the 2022 version, with a reduction ratio of 64.3%. Compared to the positive list that specifies "what can be done", the negative list clearly states "what is prohibited", providing a more transparent market access management model for private enterprises. According to data released by the State Administration for Market Regulation, as of the end of May 2024, there were a total of 180.45 million private economic entities in China, accounting for 96.4% of the total number of operating entities. Among them, there are 55.177 million private enterprises and 125.273 million individual industrial and commercial households. In February 2025, the China SME Development Index rose to 89.8, and the China Manufacturing Purchasing Managers' Index rose to 50.2%, returning to the expansion range. Although the negative list system has effectively improved the market environment, private enterprises still face hidden barriers in financing, government procurement, and other aspects. The phenomenon of "visible doors but unable to enter" still exists, which affects their long-term development confidence. In this context, the Law of the People's Republic of China on the Promotion of Private Economy was included in the legislative plan of the Standing Committee of the 14th National People's Congress, marking a new stage in the legal protection of private economy in China. Unlike the negative list system, which mainly focuses on "freedom of entry", the Private Economy Promotion Law makes systematic provisions in market access, fair competition, government behavior, and protection of enterprise rights, providing institutional leverage to solve the problem of "easy market entry but difficult development". This law consolidates and extends the negative list system, achieving an institutional upgrade from "access liberalization" to "full chain guarantee", and establishing the legal status of the private economy. The Private Economy Promotion Law helps to enhance the confidence of enterprises in development and promote the integration of the private economy into the new development pattern. In recent years, due to changes in the international environment and domestic economic restructuring factors, some private enterprises have faced increased operational pressure and market confidence has fluctuated. In this context, the Private Economy Promotion Law responds to the core concerns of entrepreneurs about policy continuity and legal protection by strengthening legal safeguards, effectively stabilizing enterprise expectations and boosting the confidence of private entrepreneurs. The Promotion of Private Economy Law helps optimize the business environment and enhance market transparency. The World Bank's "Global Doing Business Report" shows that China's global ranking for the business environment has risen from 96th in 2013 to 31st in 2020, significantly enhancing its international competitiveness. In addition, private enterprises have become important entities in technological innovation. By 2023, the top 1000 private enterprises in terms of R&D investment will have a total R&D investment of 1.39 trillion yuan. However, in recent years, phenomena such as "glass doors," "spring doors," and "revolving doors" still exist in large numbers, and there is still room for optimization in terms of policy transparency and implementation consistency. To this end, a series of explorations have been carried out at the local level, such as the implementation of the "Seven Prohibitions" principle in the bidding field in Zhejiang Province in 2024, the comprehensive implementation of the "32 Articles on Private Economy", and the promotion of fair competition. Therefore, the Private Economy Promotion Law will further provide more stable and fair development space for private enterprises. General Secretary Xi Jinping emphasized: "In the new era and new journey, the development prospects of the private economy are broad and promising. It is timely for private enterprises and entrepreneurs to show their talents. We must unify our thinking, strengthen our confidence, and promote the healthy and high-quality development of the private economy." This provides a fundamental guideline for promoting the healthy and high-quality development of the private economy in the current and future periods. The Private Economy Promotion Law not only consolidates the legal status of the private economy, but also responds to the concerns of enterprises at the institutional level, providing solid guarantees for the stable and sustainable development of the private economy. Author: Wang Zhiguo (Researcher at the Institute of Strategic Studies, Peking University)