Private enterprises need to adapt to law-based market environment

In the basket of policy measures the central authorities released last week, the private sector is seen as not only a vital and vigorous power in the national economy, but also an important force boosting the country's modernization through high-quality development.

To promote high-quality development, China is establishing a higher-level market economy system, creating a market-oriented, law-based business environment, and building a unified national market that is open, fair, efficient and well-regulated. In this process, it is necessary to strengthen the protection of the property rights of private enterprises and the rights and interests of entrepreneurs in accordance with the law, so that market entities of all types of ownership have equal access to production factors, fair participation in market competition and equal legal protection, so as to spur them to achieve higher efficiency and higher quality growth through fair competition based on rules.

To that end, the government must establish a corresponding institutional and regulatory framework based on the principle of letting the market determine the allocation of resources. Regulatory law enforcement should strengthen the standardization of regulatory behaviors, so as to be fair, transparent, stable and predictable. A mechanism should be established to help enterprises effectively protect their rights at a low cost and avoid retaliation.