(Yicai Global) March 7 -- The All-China Federation of Industry and Commerce, an organization that acts as a bridge between the private sector and the Chinese government, has proposed to legislate for the private economy to give private firms a better sense of security amid a general downturn during the Covid-19 pandemic.

The ACFIC will put forward a law that upholds the equal status, common development, fair competition, reciprocal cooperation, equal supervision and equal protection of private businesses and enterprises of other ownership systems, it said in its “Proposal on the Formulation of a Law on the Promotion of the Private Economy” made at a sub-session of the the ongoing annual meetings of the country’s top political and legislative bodies in Beijing.

The new law will clarify the responsibility of governments at all levels to promote the development of the private economy, establish a special monitoring system for the supervision of civil servants who infringe on the rights and interests of private firms, and stipulate legal requirements for judicial organs to protect the rights and interests of private companies, it added.

In reality, there is a lack of legislation to protect and support the private sector, said Pi Jianlong, a member of the National Committee of the Chinese People's Political Consultative Conference and director of Beijing Jintai Law Firm. Legislation which highlights the state’s institutional arrangements and legal guarantees for private companies can greatly boost confidence within the private economy, he added.

After three years of the pandemic, many businesses are in a development trough and private investment has declined significantly, said Liu Yonghao, a member of the National Committee of the Chinese People’s Political Consultative Conference and chairman of livestock breeder New Hope Group. Enterprises are mostly holding a wait-and-see attitude, either not investing at all or investing less.

Legislature for the private sector should highlight the equal protection of private companies, Pi said. And private businesses should be able to participate equally in industries that are not included in the negative list, he added.

Private enterprises should be treated in a more inclusive and caring manner, said Zhang Qiaoliang, deputy to the National People’s Congress, vice president of the Shandong Lawyers Association and senior partner of Shandong Kangqiao Law Firm. The government should strengthen the screening and correction of unjust cases involving private firms.

Editor: Kim Taylor