China has moved to ban authorities from imposing fines on private businesses without a legal basis in the latest draft of a new private-economy promotion law, as the country’s leaders step up efforts to boost confidence in the private sector and shore up economic growth.
The bill, which is designed to ensure private companies receive clear legal protections, is due to receive a second review by lawmakers at the ongoing National People’s Congress Standing Committee meeting. It is expected to be debated and potentially approved at next month’s meeting of China’s top legislature.
“No entity may impose fees on private businesses in violation of laws and regulations, levy fines without legal grounds, or force private enterprises to contribute assets,” the added provision states, according to state news agency Xinhua.
“In recent years, many local authorities have selectively fined private firms and conducted investigations that have seriously disrupted their operations,” said Peng Peng, executive chairman of the Guangdong Society of Reform, a Guangzhou-based think tank.
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