China's top legislature has stepped up efforts to improve the legal and policy environment for the private sector, removing institutional barriers and promoting fair competition, moves that analysts said will help stabilize expectations and energize market vitality.

At the second plenary meeting of the fourth session of the 14th National People's Congress (NPC) held on Monday, a work report from the NPC Standing Committee showed that over the past year, authorities conducted a concentrated review of regulatory documents that affect private economic development or treat enterprises unequally, according to the Xinhua News Agency.

Over the past year, 2,218 administrative regulations at various levels have been reviewed by the NPC Standing Committee, which also responded to 6,705 review suggestions submitted by citizens and organizations, according to the NPC Standing Committee work report.

The Government Work Report delivered during this year's two sessions proposed that China will refine supportive regulations and policies for the Private Sector Promotion Law to consolidate the legal and institutional basis for ensuring equal access to production factors, a level playing field for market competition, and effective protection of private economic entities' lawful rights and interests.

The work carried out by the NPC Standing Committee represents a follow-up to the implementation of the Private Sector Promotion Law, which came into effect last year, aimed at ensuring fair participation in market competition and boosting confidence among private businesses.

Several private firms welcomed the move, saying that they hope to see more concrete measures to further stimulate market vitality.

"The country's support for the private sector has evolved from targeted policy measures to institutional safeguards, giving private enterprises greater confidence," Qi Xiangdong, a member of the 14th National Committee of the Chinese People's Political Consultative Conference and chairman of cybersecurity firm Qi An Xin Technology Group, said in a statement sent to the Global Times on Monday.

Qi noted that a symposium on private enterprises held in February 2025 injected strong confidence and momentum into companies including Qi An Xin.

Zhang Shijie, chief scientist at commercial aerospace firm GalaxySpace, told the Global Times on Monday that efforts to create a transparent and fair policy and regulatory environment have improved resource allocation and development efficiency for the private sector.

"This not only helps private enterprises including GalaxySpace improve industrial ecosystems, but also strengthens our confidence to keep innovating," Zhang said.

An improving business environment and stable policy expectations will allow private companies to focus more on product innovation and quality improvement, Wang Pu, co-founder of beverage brand Chi Forest, said in a statement sent to the Global Times on Monday.

Wang said that as the country attaches increasing importance to private-sector development, the company looks forward to stronger policy guidance in areas such as intellectual property protection and breakthroughs in core technologies.

The private economy is a vital component of China's national economy and a key barometer of its vitality. Improving transparency in the business environment and ensuring fair market competition will play an important role in advancing the goals laid out in the Government Work Report, Li Changan, a professor at the Academy of China Open Economy Studies under the University of International Business and Economics, told the Global Times.

Lawmakers have been steadily making efforts to improve the legal and policy environment for the private sector. In order to ensure the full implementation of the Private Sector Promotion Law, the Legislative Affairs Commission of the NPC Standing Committee has pushed for the revision or abolition of 1,466 regulatory documents of various types, according to an article published on the NPC's official website on December 23, 2025.

Some cases involved local rules requiring ride-hailing platforms from other regions to establish local branches before operating, which increased business costs and created market barriers. After review, authorities urged amendments to three local regulations and two local government rules.

In other cases, some localities required taxi drivers to hold local household registrations before being allowed to work. Authorities determined that the requirement violated principles promoting labor mobility and fair employment and constituted unreasonable identity discrimination. A nationwide review was subsequently launched to revise related rules, according to another NPC article.

Li noted that although the Private Sector Promotion Law has been in effect for less than a year, legislative oversight has helped ensure its implementation, leading to progress in improving the legal and business environment for private-sector development, particularly in promoting fair market competition.

"During the upcoming 15th Five-Year Plan (2026-30) period, creating a more high-quality and fair development environment for the private economy will remain an important task," Li said.