On August 8, 2025, the Supreme People's Court released the "Guiding Opinions on Implementing the 'Law of the People's Republic of China on Promoting the Private Economy'" (hereinafter referred to as the "Guiding Opinions"). The "Guiding Opinions" outline specific judicial measures across five key areas to support and strengthen the development of the private economy, aiming to address the challenges hindering its growth and providing stronger legal safeguards for the healthy advancement of the private sector.
Since the 18th National Congress of the Communist Party of China, the CPC Central Committee has placed great emphasis on the development of the private sector, firmly committing to unswervingly encourage, support, and guide the growth of the non-public economy. On February 17, 2025, General Secretary Xi Jinping attended a symposium on private enterprises and delivered an important speech, outlining comprehensive strategies to foster the healthy and high-quality development of the private sector—both now and in the years ahead. Meanwhile, the Private Economy Promotion Law, officially enacted on May 20, 2025, codifies into law the major policies, groundbreaking institutional achievements, and proven practical experiences introduced by the CPC Central Committee since the reform and opening-up period, particularly during the new era, thereby providing a robust legal framework to further boost the growth of the private economy.
The vitality of the rule of law lies in its implementation. To fully leverage the judiciary's role and ensure that the spirit, core principles, and relevant provisions of the Private Economy Promotion Law are integrated into every stage and aspect of the People's Courts' work, the "Guiding Opinions" were introduced. These Opinions comprehensively summarize the practical experiences of trial and enforcement activities within the People's Courts, further refining judicial guidelines, strengthening and improving working mechanisms, and addressing real-world challenges head-on. The goal is to guarantee accurate and consistent application of the law. From five key perspectives—overall requirements, ensuring equal treatment under the law, guiding lawful and compliant business practices, upholding strict and impartial justice, and enhancing the institutional framework for fair judicial processes—the Opinions outline 25 concrete measures aimed at deeply implementing the Private Economy Promotion Law and fostering the healthy growth of the private sector. Key highlights include: 1. Strengthening confidence through robust, equal protection under the law. This involves adopting multiple strategies to ensure private enterprises have fair access to market competition, while also focusing on addressing specific issues—such as helping these enterprises expand financing channels, tackling overdue payments, and safeguarding their innovation efforts—to promote the steady and orderly development of emerging industries. 2. Guiding businesses toward sound operations by establishing a solid foundation. Through tools like issuing judicial interpretations, sharing exemplary cases, providing guidance via research, and conducting case reviews, the courts will actively combat internal corruption and other criminal activities within private enterprises. At the same time, they will encourage these organizations to adopt transparent governance models, operate with integrity and legality, manage labor practices responsibly, and protect consumers' rights and interests—ultimately supporting private enterprises as they confidently expand overseas. 3. Ensuring stable expectations through rigorous and impartial justice. Courts are tasked with reinforcing judicial protections of property rights, standardizing procedures for handling assets involved in legal disputes, rectifying wrongful convictions related to businesses, and safeguarding the personal and legal rights of private enterprise leaders and operators. 4. Fostering dynamism through empathetic and civilized judicial practices. Throughout all stages of litigation—from filing a case to judgment and enforcement—courts are encouraged to optimize litigation services, ensuring a more efficient and client-friendly experience for all parties involved. Reducing dispute resolution and crisis-management costs for private economic organizations "Improve the mechanisms for punishing dishonesty and restoring creditworthiness, and steadily carry out special campaigns to standardize law enforcement and judicial practices involving businesses. Effectively address irregular enforcement actions, minimizing their impact on companies' normal operations and production activities. Additionally, enhance the efficiency of foreign-related trials, strengthen legal awareness campaigns, and continuously expand the provision of high-quality judicial services."
Moving forward, the Supreme People's Court will continue to diligently implement the "Guiding Opinions," further enhancing its judicial functions to harness market vitality through rule-based governance and unlock development momentum by safeguarding rights and interests. The court will strive to create a stable, fair, transparent, and predictable business environment under the rule of law, ensuring that the decisions and policies of the CPC Central Committee, as well as the Private Economy Promotion Law, are thoroughly and effectively put into practice within the judicial system.
Fa Fa [2025] No. 15
Supreme People's Court
Notice on Issuing the "Guiding Opinions on Implementing the 'Law of the People's Republic of China on Promoting the Private Economy'"
To the Higher People's Courts of all provinces, autonomous regions, and municipalities directly under the central government; the Military Court of the People's Liberation Army; and the Xinjiang Uygur Autonomous Region Higher People's Court Production and Construction Corps Branch—To all units within this court:
The Supreme People's Court, in light of the actual work of people's courts, has drafted the "Guiding Opinions on Implementing the 'Law of the People's Republic of China on Promoting the Private Economy,'" which is now distributed to you. Please align your implementation with local realities. Should you encounter specific challenges in practice, promptly report them upward to the Supreme People's Court.
Supreme People's Court
July 30, 2025
Supreme People's Court
Guidance on Implementing the "Law of the People's Republic of China on Promoting the Private Economy"
As the first foundational law in China specifically dedicated to the development of the private economy, the enactment of the Private Economy Promotion Law marks a landmark initiative to implement the spirit of the Third Plenary Session of the 20th Central Committee of the Communist Party of China and the important remarks made by General Secretary Xi Jinping at the symposium on private enterprises. This move clearly demonstrates the Party and the state’s unwavering commitment to encouraging and supporting the growth of the private sector. To thoroughly implement the Private Economy Promotion Law and fully leverage the judiciary’s role in safeguarding the legitimate rights and interests of private economic organizations and their operators in a fair and equal manner, while promoting the sustained, healthy, and high-quality development of the private economy through rigorous and impartial judicial practices, the following opinions are put forward based on the practical realities of trial and enforcement work conducted by people’s courts.
I. General Requirements
Uphold Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as our guiding principle, and deeply study and implement Xi Jinping’s economic thought and rule-of-law thinking. Closely follow the important speech delivered by General Secretary Xi Jinping at the symposium on private enterprises, as well as his series of significant remarks on the development of the private economy. Earnestly promote, publicize, and enforce the Private Economy Promotion Law, firmly adhering to and implementing the "two unwavering commitments." Continuously refine judicial policies and measures that foster the growth of the private sector, ensuring the effective implementation of the principle that "acts infringing upon the property rights and legitimate interests of all forms of ownership will be held accountable, prosecuted, and punished equally." Uphold strict and impartial justice, improve judicial rulings, enhance operational mechanisms, and rigorously carry out targeted enforcement and judicial actions aimed at regulating business-related practices. By doing so, we will steadily optimize the rule-of-law-based business environment, strengthen judicial oversight and guidance, and ensure the consistent and accurate application of the law. This will provide robust judicial support and safeguards, paving the way for a healthier legal framework that nurtures the development of the private economy and helps build a high-level socialist market economy system.
2. Uphold equal treatment under the law and ensure that all types of economic organizations can fairly participate in market competition.
1. Strictly implement the "permit unless prohibited" policy. Fully enforce the nationwide unified negative list system for market access. In handling civil and commercial cases involving construction projects, real estate, mineral resources, as well as utilities like water, electricity, gas, and heating, accurately assess how relaxed market access—particularly in natural monopoly sectors and service industries—may affect the validity of contracts, and deliver fair and impartial judgments in accordance with the law. Properly adjudicate administrative licensing, administrative agreements, and administrative commitments closely tied to business entities, while rigorously preventing the misuse of administrative power to exclude or restrict competition. This will help dismantle regional barriers and local protectionism, ensuring that all forms of ownership can equally access production factors, compete fairly in the marketplace, and enjoy identical legal protections under the law.
2. Enhance the administrative litigation review system and mechanisms. Properly adjudicate administrative agreement cases—such as investment promotion agreements signed between local governments and their departments with private economic organizations, as well as agreements related to public-private partnership projects—while adhering strictly to the law. Refine judicial rules for handling administrative agreement disputes, ensuring a fair and balanced determination of rights and obligations for all parties involved. Resolve issues concerning the allocation of investment returns and the sharing of liability risks in a lawful and impartial manner, thereby fostering a favorable investment and market environment. Additionally, hear administrative cases involving administrative enforcement measures, promoting the lawful and standardized application of such measures against private economic organizations and their operators, while preventing any adverse impact on their normal business operations. Strengthen the review of administrative penalty cases targeting private enterprises, ensuring that penalties are neither excessively harsh nor disproportionate to the facts, nature, circumstances, or societal harm caused by the violations. Furthermore, intensify the handling of administrative cases related to the expropriation or requisition of property from private enterprises, closely monitoring that administrative agencies follow statutory authority, conditions, and procedures, while providing equitable and reasonable compensation. Finally, continue implementing the "3+N" mechanism for preventing and effectively resolving administrative disputes. Collaborate with relevant authorities to develop targeted and comprehensive regulatory documents addressing key areas such as the unified national market, market supervision, securities and futures, and financial regulation, proactively working to prevent and resolve administrative disputes involving private economic organizations.
3. Regulate monopolies and anti-competitive practices in accordance with the law. Strengthen judicial enforcement against monopoly and unfair competition, taking legal action against behaviors that undermine fair competition and disrupt market order. Properly adjudicate monopoly disputes in the technology sector, clearly distinguishing between legitimate exercise of intellectual property rights and instances of intellectual property abuse aimed at excluding or restricting competition. This will ensure that all types of enterprises have equitable access to innovation resources, promoting the rational allocation and efficient utilization of these resources, and actively supporting the development of a unified, large-scale market.
4. Legally support the expansion of financing channels. Implement the provisions of the Civil Code regarding functional guarantees, and provide legal backing for private economic entities to leverage their supply chain and industrial networks in developing innovative financing and guarantee mechanisms. Additionally, legally recognize the validity of atypical forms of security, ensuring stable legal expectations among financial institutions and helping private enterprises effectively utilize their assets and resources to secure credit financing. Continuously improve mechanisms for collecting and sharing credit information, collaborating with relevant departments to safeguard corporate credit data. Ensure timely updates on companies’ litigation and enforcement statuses, preventing delays in information updates from hindering businesses’ access to normal financing. Work closely with credit regulatory authorities such as market regulators and the People’s Bank of China to promptly restore damaged credit records in accordance with laws and regulations. Firmly enforce national financial management policies, strengthen communication with financial oversight bodies, and encourage financial institutions to continually enhance inclusive financial services and offerings. Regulate interest rate practices in compliance with the law, while collaboratively promoting the effective implementation of supportive policies. Legally regulate instances where financial institutions unilaterally impose stricter loan conditions, suspend lending, or prematurely recall loans—ensuring that the legitimate rights and interests of private enterprises are fully protected. Furthermore, strictly combat illegal activities such as usury, "skimming interest," unauthorized professional lending, and illicit loan brokering. Severely punish criminal acts related to informal lending, while simultaneously guiding and regulating the orderly development of private financing markets. This will help private enterprises overcome the persistent challenges of "difficult" and "expensive" financing.
5. Focus on actively addressing the issue of unpaid accounts owed to private-sector enterprises. Strictly enforce the mandatory provisions on payment timelines outlined in the Private Sector Promotion Law, the Regulations on Guaranteeing Payments to Small and Medium-Sized Enterprises, and the "Reply on the Validity of Clauses in Agreements Between Large and SMEs That Link Payments to Third-Party Settlements." Ensure by law that private-sector organizations—especially SMEs—are promptly paid their outstanding invoices. Leveraging the inter-ministerial joint conference mechanism for clearing overdue payments, further refine the prevention and resolution framework for unpaid accounts to private enterprises. Fully implement the "green channel" measures designed for swift case initiation, protection, review, and enforcement, while strengthening compulsory enforcement actions against defaulting entities. Additionally, proactively employ cross-enforcement strategies to significantly enhance efforts in resolving cases involving unpaid accounts to private-sector firms.
6. Strengthen judicial protection of scientific and technological innovation. We must not only intensify efforts to safeguard intellectual property rights for innovative achievements but also curb malicious and frivolous intellectual property litigation, thereby fostering a more robust legal environment conducive to innovation and entrepreneurship. We will rigorously adjudicate intellectual property cases involving high-tech fields, elevating the level of judicial protection for groundbreaking innovations in critical areas and core technologies. Additionally, we will develop guidelines on the application of punitive damages, refine judicial rulings, and clarify evaluation criteria to ensure that intellectual property-related punitive measures effectively deter infringement, provide meaningful redress to rights holders, and incentivize creativity and innovation. Furthermore, we will proactively address the persistent issue of "one case pending another" in patent-related civil-administrative conflicts, as well as inconsistencies in judicial standards. To achieve this, we’ll strive for seamless procedural coordination and harmonized outcomes in handling such cross-jurisdictional patent disputes. In collaboration with the National Intellectual Property Administration, we will establish and enhance a robust collaborative mechanism for case review, accelerating the integration of administrative procedures related to patent confirmation with ongoing civil litigation. This initiative aims to facilitate substantive dispute resolution and bolster our ability to manage large-scale intellectual property enforcement cases efficiently across the country.
7. Ensure the healthy and orderly development of emerging industries. Draft guidelines on judicial protection of data property rights, properly address data-related disputes, and promote the efficient circulation and trading of data as a key production factor. Additionally, hear cases involving artificial intelligence disputes in accordance with the law, support the lawful application of AI technologies, and guide the industry toward sustainable and balanced growth.
3. Guide lawful and compliant operations in accordance with the law, fostering the healthy development of the private economy.
8. Punish, in accordance with the law, criminal activities such as corruption within private economic organizations. Accurately apply legal standards to cases involving corruption in private economic organizations, and promptly release guiding and typical cases to support the regular implementation of rule-of-law outreach initiatives targeted at these organizations. Strengthen research and guidance to effectively combat and firmly curb bid-rigging crimes, fully leveraging the deterrent, educational, and cautionary effects of case studies to guide and regulate market economic order.
9. Promote the improvement of internal governance. For disputes among shareholders in private economic organizations, actively guide parties toward resolving operational stalemates through legally sound measures such as equity transfers, share buybacks, or capital reduction and corporate spin-offs—ensuring these solutions address the root causes of conflict. This approach helps prevent internal governance from spiraling out of control and disrupting business operations. At the same time, strictly uphold the principle of independent legal entity property, strengthening regulatory oversight over the conduct of controlling shareholders and actual controllers. Any abusive behavior by these stakeholders—such as engaging in related-party transactions aimed at siphoning off company assets, misappropriating funds for non-operational purposes, or imposing undue risks on the company through unauthorized guarantees—will be rigorously pursued under the law. By enforcing these legal safeguards, we aim to safeguard the modern corporate ownership structure characterized by clear property boundaries, mutual independence between shareholders and the company, and distinct separation of liabilities. Ultimately, this ensures the protection of the rights and interests of minority and medium-sized shareholders.
10. Promote honest and law-abiding business practices. Fairly adjudicate, in accordance with the law, various contract disputes arising from debts incurred by private economic entities in their production and operations, consistently encouraging these organizations to strengthen their awareness of the rule of law, foster a robust spirit of contract adherence, and reinforce their commitment to honoring contractual obligations. Enhance communication and collaboration with market regulatory authorities, further refining market exit mechanisms such as liquidation and deregistration for businesses operating abnormally. Strengthen legal accountability for entities failing to fulfill their liquidation duties, and rigorously enforce the law against illegal activities like debt evasion and other acts of dishonesty. Additionally, impose strict legal penalties on enterprises engaging in crimes that undermine financial management systems, commit financial fraud, jeopardize tax collection and administration, infringe upon intellectual property rights, or disrupt market order. For particularly pressing issues of criminal activity, continuously refine judicial rulings and ramp up enforcement efforts under the law. Finally, severely punish actions that harm the ecological environment, ensuring development no longer comes at the expense of environmental degradation, and actively support private economic entities in transitioning toward more sustainable and innovative business models.
11. Promote the building of harmonious labor relations. Accurately apply the "Interpretation by the Supreme People's Court on Issues Concerning the Application of Law in Handling Labor Dispute Cases (II)," strengthen efforts to protect workers' rights and interests, and emphasize the balanced, lawful protection of both employers' and employees' legitimate rights and interests. Enhance coordination and collaboration with relevant departments, leverage the linkage mechanism between arbitration and litigation, ensure consistent application of legal standards, and drive the implementation of the "One Letter and Two Documents" initiative. Additionally, guide enterprises toward more standardized employment practices and encourage the diversified resolution of labor disputes and conflicts. Continuously deepen research into protecting the rights and interests of workers in new forms of employment, release exemplary cases, and provide support for, as well as regulate, the development of these emerging employment models.
12. Hear consumer dispute cases in accordance with the law. Release typical cases of online consumption to guide business operators in conducting their activities in a compliant and transparent manner, thereby fostering the healthy and sustainable growth of the digital economy and platform-based industries. Implement the punitive damages system for food and drug violations, strictly regulating "knowingly purchasing counterfeit goods" while safeguarding consumers' legitimate rights and interests under the law—and simultaneously cracking down on illegal claims to protect businesses and maintain orderly production and operations. Additionally, handle civil disputes related to prepaid consumption models fairly and effectively, encouraging businesses to operate with integrity. This approach both supports the financing role of prepaid systems, helping reduce operational costs and boost investment, while also taking decisive legal action against practices such as operators absconding with funds, imposing unfair contract terms, or refusing refunds—actions that harm consumer rights and undermine market stability.
13. Supporting Private Economic Organizations in Safely Expanding Overseas. We will study and formulate opinions on promoting the high-quality development of international commercial courts, further enhancing the "one-stop" international commercial dispute resolution mechanism that seamlessly integrates litigation, arbitration, and mediation. Emphasis will be placed on strengthening the role of cross-border commercial mediation, providing a more efficient, convenient, and cost-effective platform for resolving international commercial disputes. This initiative aims to better support and safeguard various private economic organizations as they actively participate in jointly building the Belt and Road Initiative. Additionally, we will timely release guiding cases that clarify parties' agreements on jurisdiction and their choices of applying foreign laws. We will also publish reports on foreign-related commercial trials and highlight typical cases related to Belt and Road construction, offering guidance to companies "going global" to proactively enhance their risk awareness and encouraging them to operate in full compliance with the law.
4. Uphold strict and impartial justice, and safeguard the legitimate rights and interests of private economic organizations and their operators in accordance with the law.
14. Strengthen judicial protection of property rights. Prosecute, in accordance with the law, crimes that disrupt the socialist market economy, adopting a comprehensive, end-to-end approach to enforcement. Strictly punish offenses such as extortion, coercive trading, and organizing crowds to disturb the normal operations of enterprises. Develop and issue judicial interpretations for handling civil-criminal crossover cases, and conduct in-depth research and guidance on legal issues related to contract fraud. While upholding rigorous, fair, and lawful trials, clearly distinguish between economic disputes and economic crimes, and firmly prevent treating legitimate economic disagreements as criminal offenses.
15. Properly manage property involved in cases. Accurately apply the "Opinions of the Supreme People's Court on Standardizing the Enforcement of Property-Related Provisions in Criminal Judgments," and establish a sound, standardized mechanism for enforcing such provisions. This approach will not only fully leverage criminal asset recovery and restitution measures to safeguard the property rights of private economic organizations and their operators as victims, but also strictly distinguish between illegal gains, other case-related assets, and legitimate property; between the assets of private enterprises and those belonging to individual business operators; and between the property of parties involved in the case and that of unrelated third parties. Ultimately, this ensures that legitimate business operations remain unaffected, while protecting both individuals' lawful rights and the legitimate interests of third parties from infringement.
16. Correct wrongly decided cases involving enterprises in accordance with the law. Re-examine and rectify wrongful corporate-related cases through legal channels, rigorously reviewing whether measures restricting personal freedom—such as coercive actions—comply with statutory authority, conditions, and procedures. Promptly release typical cases of successful retrials and corrections, ensuring that every error is addressed and corrected in strict adherence to the law. Strengthen the mechanisms for identifying and rectifying wrongful corporate cases by establishing comprehensive working records and actively conducting targeted reviews. Increase the involvement of higher-level courts in taking over cases for review or direct adjudication, refine the system of ordering re-trials at courts in different jurisdictions, and prevent unnecessary procedural delays. Additionally, enhance ongoing guidance, supervision, and oversight of cases ordered for re-trial or remanded for further review, striving to improve the quality and effectiveness of judicial decisions while bolstering public trust in the judiciary.
17. Protect the personality rights of private economic organizations and their operators in accordance with the law. Strictly punish online violence and other illegal acts that harm businesses, and firmly crack down on crimes targeting the reputation, personal dignity, and privacy rights of private enterprises and their operators. Fully leverage the preventive injunctions against infringement of personality rights and the behavioral preservation mechanisms to promptly curb malicious defamation of private enterprises and their operators. Actively publicize exemplary cases and incorporate them into relevant databases, further enhancing the role of fair judicial rulings as a model for guidance. Deepen research into legal issues related to the application of laws governing the personality rights of private economic organizations—such as their rights to name, reputation, and honors—as well as the personality rights of their operators, including rights to reputation, honor, privacy, and personal information, ensuring rigorous and standardized enforcement under the Personality Rights Chapter of the Civil Code.
5. Strengthen the fair and impartial judicial system and mechanisms, and continuously enhance the effectiveness of judicial safeguards.
18. Enhance the Multi-Dispute Resolution Mechanism. Uphold and advance the "Fengqiao Experience" of the new era, driving the improvement of mechanisms aimed at preventing conflicts and disputes at their source, as well as promoting diversified approaches to conflict resolution. Actively participate in the standardized construction of comprehensive social security governance centers, strengthen guidance on mediation functions, and foster collaboration among various professional mediation channels—including people's mediation, administrative mediation, chamber-of-commerce mediation, and lawyer-led mediation—to more effectively prevent and resolve disputes. Deepen efforts to ensure that petitioning activities are conducted within a legal framework, while reinforcing work to address litigation-related petitions. Further refine the "Headquarters-to-Headquarters" mechanism, steadily advancing the People's Court’s mediation platform into villages, communities, and grid systems. Strengthen cooperation with organizations like the All-China Federation of Industry and Commerce, helping to significantly reduce the costs faced by private-sector enterprises in resolving disputes and overcoming financial challenges.
19. Continuously optimize litigation services. We will steadfastly uphold the case filing and registration system, ensuring that all lawsuits meeting legal requirements are "filed when appropriate and addressed promptly." This includes enhancing our multi-channel, diversified service offerings—such as on-site filing, online filing, and cross-jurisdictional filing options. Additionally, we will leverage the roles of early-stage mediation and multi-faceted dispute resolution mechanisms, actively promoting non-litigious and diversified approaches to resolving conflicts in cases suitable for mediation. Furthermore, we’ll strengthen the promotion and application of model texts for complaints and responses, encouraging private-sector enterprises to adopt these standardized documents to legally articulate their concerns. By doing so, we aim to enhance the sense of convenience, efficiency, and effectiveness with which businesses can use these models to proactively address and resolve disputes.
20. Properly apply preservation measures in accordance with the law. Conduct litigation preservation work prudently and in compliance with legal requirements, strictly prohibiting any unauthorized, excessive, or prolonged seizure, detention, or freezing of assets. Whenever possible, adopt the "living freeze" approach to minimize disruptions to the legitimate business operations of the private economy. Furthermore, enhance the coordinated mechanisms among case filing, trial, and enforcement processes. Fully leverage mediation functions during the case-filing stage, promptly informing parties involved in litigation preservation about the efficiency and effectiveness of mediation in resolving disputes. Encourage parties to reach amicable settlements and substantive resolutions, thereby strengthening the practice of "using preservation to facilitate mediation" and "using preservation to support enforcement." Finally, ensure fair and lawful adjudication of compensation disputes arising from litigation preservation measures, clearly defining rules for seeking reimbursement and accurately determining liability for wrongful preservation actions. Guide parties to exercise their rights under litigation preservation procedures in a lawful manner, while firmly addressing cases of abusive litigation tactics and preventing disputes caused by improper preservation practices.
21. Conduct enforcement activities in strict accordance with the law. Standardize property investigations to prevent wrongful seizures of third-party assets. When seizing assets, strictly prohibit over-seizures that significantly exceed the amount owed, and prioritize enforcing against properties that have minimal impact on the debtor’s daily life and production while ensuring ease of execution. Standardize property disposal procedures by promptly initiating monetization processes for assets already under control, determining fair market values in compliance with the law, and fully and accurately disclosing all verified property details during auctions or sales. Under certain conditions, debtors may even be allowed to handle the disposal themselves. Additionally, regulate coercive measures and indirect enforcement actions: Any imposition of fines or detention must follow rigorous approval procedures and be applied strictly as mandated by law. Measures such as travel restrictions, credit penalties, and consumption limits should only be implemented after thorough review to confirm the debtor meets statutory criteria. If any of these measures no longer apply, they must be lifted promptly within the prescribed timeframe.
22. Strengthen the mechanisms for punishing dishonesty and enabling credit restoration. Ensure that penalties for dishonest behavior are strictly enforced in accordance with laws and regulations, while carefully calibrating both the scope and severity of such measures. It’s crucial to clearly distinguish between "dishonesty" and "inability to perform," leveraging tiered and categorized approaches to punishment as well as incentives for trustworthy behavior. For business entities exhibiting minor instances of dishonesty but actively working to rectify their actions, these entities may temporarily be excluded from being listed as untrustworthy—provided the applicant enforcing the judgment has given their consent. Additionally, entities with moderate levels of dishonesty can be granted grace periods, during which they may restructure through methods like settlement agreements, installment payments, mergers, acquisitions, or even attracting third-party funding to revitalize their assets. Actively utilize tools such as grace periods for enforcement penalties and single-instance de-listing policies to encourage debtors to fulfill court-ordered obligations and facilitate amicable settlements between parties, ultimately achieving mutually beneficial outcomes. Establish a dynamic mechanism for adjusting dishonesty ratings: based on the debtor’s progress in fulfilling their obligations, their credit rating will be reassessed every six months. Furthermore, enhance and streamline channels for credit restoration. If a delinquent entity proactively fulfills its court-ordered obligations or voluntarily corrects its dishonest behavior, the People’s Court will promptly assist in restoring its credit standing by issuing official certification documents, enabling the business to swiftly return to normal operations. Strengthen collaboration and coordination with key stakeholders, including the National Development and Reform Commission, financial institutions, and market regulators, to encourage credit rating agencies to refine their methodologies for assessing private-sector organizations. This will promote mutual recognition of credit restoration outcomes and boost the overall availability of reliable credit ratings.
23. Firmly address and rectify prominent issues in enterprise-related trial and enforcement processes. Thoroughly implement a special campaign aimed at standardizing law enforcement and judicial practices involving businesses, continuously consolidate and deepen the achievements of this initiative, and genuinely enhance confidence through equal protection under the law, stabilize expectations with strict and impartial justice, and stimulate vitality through benevolent and civilized judicial approaches. Adhere to the fundamental principle of "statutory jurisdiction as the norm, designated jurisdiction as the exception," rigorously prevent enforcement actions driven by profit motives, and resolutely correct any tendencies to expand jurisdiction or artificially create cross-jurisdictional disputes in cases involving the private economy. Effectively tackle irregular enforcement practices targeting private economic organizations and their operators, minimizing the impact of enforcement measures on businesses' normal operations and production activities.
24. Enhance the effectiveness of foreign-related judicial proceedings. Strengthen and refine mechanisms that facilitate cross-border litigation, accelerate the revision of the foreign-related section of the Judicial Interpretation of the Civil Procedure Law, and further improve procedural rules governing foreign jurisdiction, service of process, and other key areas. Additionally, enhance the mechanism for ascertaining foreign laws by establishing a sophisticated, highly specialized system for examining and interpreting foreign legal frameworks. Explore the development of streamlined, expedited procedures for handling minor foreign-related disputes, ensuring that litigation processes do not disrupt the operations or production activities of small- and medium-sized private economic entities. Refine mechanisms for the accurate application of international treaties and customary practices, strengthen systems for cross-border recognition and enforcement of arbitral awards and civil/commercial judgments, and bolster judicial oversight and guidance to ensure consistent standards in adjudication—thereby effectively elevating the overall capacity and quality of foreign-related judicial proceedings. Finally, further improve the efficiency and effectiveness of handling judicial assistance cases, leveraging these channels to better support private economic organizations in safeguarding their legitimate rights and interests overseas.
25. Strengthen legal publicity and education. Grounded in the realities of judicial trials, diligently implement the "who enforces the law, who promotes the law" responsibility system. Thoroughly explain the rule-of-law safeguards and guiding role of the Private Economy Promotion Law, ensuring effective public awareness campaigns about the legislation. At the same time, enhance case-based legal explanations, leveraging the exemplary and educational impact of key cases to help private economic organizations and their leaders "understand clearly and apply effectively."
People's courts at all levels should treat studying, publicizing, and implementing the Private Economy Promotion Law as a major political task. They must strengthen organizational leadership, reinforce accountability, and promptly address any emerging challenges or issues in putting the law into practice. The relevant trial departments of the Supreme People's Court should enhance guidance across their respective areas of expertise, making full use of platforms such as the Court Case Database and the Legal Q&A Network to effectively bolster judicial oversight and guidance. When hearing cases involving the private economy, local courts should carefully apply the relevant provisions of the Private Economy Promotion Law based on actual circumstances, while also tailoring and refining implementation measures tailored to their region’s unique economic and social development needs—ensuring these measures are practical, effective, and deliver tangible results. Furthermore, monitoring compliance with the Private Economy Promotion Law should become a key component of judicial inspections conducted by people's courts, helping to ensure that the CPC Central Committee’s decisions and the Private Economy Promotion Law are thoroughly implemented and effectively integrated into judicial practices.
Source: Press Bureau of the Supreme People's Court
Beijing Headquarters Address: No. 8 Jianguomen North Avenue, Dongcheng District, Beijing 17th Floor, East Wing, China Resources Building
Wuhan Branch Office Address: Room 1001, 10th Floor, Huangpu International Center, Jiang'an District, Wuhan City, Hubei Province
Layout: Wang Xin
Review: Management Committee
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