On May 20th, the Law of the People's Republic of China on the Promotion of Private Economy was officially implemented. As the first fundamental law in China specifically related to the development of the private economy, the Private Economy Promotion Law has created many "firsts", such as clarifying the legal status of the private economy for the first time and stipulating in the law that "promoting the sustained, healthy, and high-quality development of the private economy is a major policy that the country has long adhered to". Currently, in the context of an increasingly complex external environment, it is believed that the promulgation of this law will play a very positive role in enhancing the investment confidence of private enterprises, stabilizing market sentiment, and promoting the development of the private economy. ”New Hope Group Chairman Liu Yonghao said in an interview with reporters. During the interview, the reporter found that the Private Economy Promotion Law focuses on the reality of the survival and development of private enterprises, responds to the core demands of private entrepreneurs, especially the "lifeline level" contents such as technological innovation and investment and financing promotion, and provides a "reassurance pill" for the development of private enterprises, greatly boosting the confidence of private entrepreneurs. Supporting private enterprises to participate in 3 trillion yuan high-quality projects is a key force in stimulating economic vitality in the private economy. The Law on the Promotion of Private Economy establishes and improves relevant institutional mechanisms around fair competition, investment and financing promotion, technological innovation, standardized operation, service guarantee, and rights protection. It puts down the requirements of the Party Central Committee for equal treatment and protection of the private economy, and continuously optimizes a stable, fair, transparent, and predictable environment for the development of the private economy. For example, Article 16 of the Law on the Promotion of Private Economy stipulates that private economic organizations are supported to participate in major national strategies and projects. Support private economic organizations to invest and start businesses in strategic emerging industries, future industries, and other fields, encourage the transformation and upgrading of traditional industries, and participate in modern infrastructure investment and construction. In order to encourage private enterprises to invest and state-owned enterprises to take action, the law has made some special provisions, the core of which is to reaffirm the spirit of the contract. It is of milestone significance to further restore the confidence of private enterprises in participating in government social capital cooperation projects, enhance the credibility of local governments, and optimize the stable, transparent, fair, and predictable legal business environment in the region. ”Liu Junhai, director of the Institute of Commercial Law of Renmin University of China, said. Speaking about how to expand the development space of private enterprises, Zheng Bei, Deputy Director of the National Development and Reform Commission, stated at a press conference held by the State Council Information Office on May 8th that this year, the National Development and Reform Commission will launch high-quality projects with a total investment scale of about 3 trillion yuan in key areas such as transportation, energy, water conservancy, new infrastructure, and urban infrastructure. At the same time, the National Development and Reform Commission will strongly support private enterprises to invest in emerging and future industries, take the lead in undertaking major national technological research and development tasks, equally use major national scientific research infrastructure and industry common technology platforms, and actively participate in the innovation and construction of new technology and product application scenarios. Professor Lan Rixu from the Central University of Finance and Economics told reporters that the promulgation of this law has transformed the development of the private economy from policy guidance to legal protection, breaking down various hidden barriers, activating innovation momentum, and forming a true fair competition mechanism. It fills the gaps in the development of the private economy from a legal perspective, which is conducive to enhancing the confidence, vitality, and expectations of the private economy, and plays a foundational role in the sustained, rapid, and high-quality development of the private economy. The continuous drip irrigation of financial "living water" enriches the fertile ground for the development of private enterprises and promotes the solution to the problems of difficult and expensive financing for private enterprises, which is one of the key areas of concern in the Private Economy Promotion Law. In the view of Zeng Gang, Chief Expert and Director of Shanghai Finance and Development Laboratory, although the financing difficulties of private enterprises have eased in recent years, they still exist due to various factors such as low risk appetite of financial institutions, uneven development of private enterprises themselves, non-standard management, and low financial transparency. In this regard, Article 23 of the Law on the Promotion of the Private Economy stipulates that financial institutions shall develop and provide financial products and services suitable for the characteristics of the private economy in accordance with the principles of marketization and sustainable development, on the premise of compliance with laws and regulations. They shall provide convenient conditions for the financing of creditworthy private economic organizations, enhance the adaptability of credit supply and loan cycles to the financing needs and capital utilization cycles of private economic organizations. On May 7, the People's Bank of China announced that, in order to encourage and guide local legal financial institutions to further increase credit to agriculture related, small and micro businesses and private enterprises, and continue to do a good job in the "five major articles" of finance, the People's Bank of China decided to increase the amount of small loans to support agriculture by 300 billion yuan. In order to further meet the financing needs of private enterprises, Article 25 of the Law on the Promotion of the Private Economy stipulates that a multi-level capital market system should be improved to support eligible private economic organizations to obtain direct financing on an equal footing through the issuance of stocks, bonds, and other means. According to Wind data, as of May 18th, there were a total of 3424 private enterprises in the A-share market, accounting for over 60%. From this year alone, as of May 19th, a total of 42 companies have entered the A-share market, including 36 private enterprises, raising a total of 23.876 billion yuan in initial public offerings. Xu Guangjian, a professor of the School of Public Management of Renmin University of China, said in an interview that after the implementation of the new law, relevant departments and financial institutions will sort out, modify and improve the investment and financing regulations for private economy or small and medium-sized enterprises that exist in the current actual work, and increase measures to promote the investment and financing business of private economy in the future management work. Overall, it is conducive to reducing the institutional costs of investment and financing for the private economy, especially for small and medium-sized enterprises. The Law on the Promotion of the Private Economy not only responds to the demands of private enterprises, but also encourages them to actively play a role in promoting scientific and technological innovation, cultivating new quality productivity, and building a modern industrial system. It aims to stimulate the innovation vitality of private enterprises through the rule of law, open up major national scientific research infrastructure to private economic organizations, support private economic organizations to participate in the research and development of digital common technologies and the construction of data element markets in accordance with the law, and implement punitive damages for intellectual property infringement. During the interview with reporters, many private entrepreneurs explicitly stated that they have indeed felt the support of the Private Economy Promotion Law for technological innovation. As a technology enterprise with high R&D investment, this law has doubled our confidence, allowing us to focus more wholeheartedly on technological innovation, take the lead in industrial chain upgrading, demonstrate our strength in international competition, and grow into a more creative, competitive, and responsible force of the times. ”Qi Xiangdong, Chairman of Qianxin Group, believes that this law directly addresses industry pain points and provides institutional solutions for technology-based private enterprises to overcome development bottlenecks through the dual drive of "promoting investment and financing" and "vigorously supporting technological innovation". Once measures such as financial support, major projects, and technological breakthroughs are truly implemented, the financial pressure on private enterprises will be greatly alleviated, thereby promoting the transformation of technology from research and development to application. The high-quality development of private enterprises relies on major scientific and technological breakthroughs. Supporting private enterprises to participate in and take the lead in tackling key and difficult problems is not only beneficial for the development of private enterprises, but also enables private enterprises in various industries to provide rich scenarios, experience, flexible and diverse funds and teams for major technological breakthroughs, to promote the transformation and upgrading of the national economy. ”Liu Yong is easy to say. As a private enterprise specializing in the research and development of "innovative drugs", Deng Kang, Secretary of the Board of Kanghong Pharmaceutical, stated in an interview with reporters that Kanghong Pharmaceutical has been focusing on seeking a balance between enterprise operation and innovation risks since its establishment. From the original traditional Chinese patent medicines and simple preparations to chemical generic drugs, to fusion protein and other fields, the company's research and development front end has a scientific committee to control and approve projects, and also has corresponding practices in clinical trials, drug development and other follow-up links, so as to concentrate resources to match the advantageous resources in the global segmentation fields as far as possible, and avoid "building cars behind closed doors". This law encourages and guides technological innovation, giving companies more confidence in their future development and having a positive impact on promoting investment, financing, and technological innovation. The vitality of law lies in its implementation. According to Zheng Bei, there is still a group of accelerating efforts to promote the implementation of the Private Economy Promotion Law, involving investment and financing promotion, technological innovation, service guarantee, and rights protection. (New Society)