Marking the first anniversary of the implementation of the Private Sector Promotion Law on May 20, the National Development and Reform Commission and the Supreme People’s Court jointly released the first batch of eight typical cases illustrating judicial efforts in enforcing the law.
Since the law came into force, courts nationwide have handled a large number of cases involving private enterprises in a fair and efficient manner, giving full play to the rule of law in safeguarding rights of market entities and boosting confidence in development.
These cases demonstrate targeted judicial measures to help private enterprises overcome operational difficulties. Rather than adopting a one-size-fits-all approach, courts tailored solutions based on the specific circumstances of enterprises and industry prospects.
In one financial loan dispute, the court designed a mediation plan combining phased repayments with gradual unfreezing of bank accounts, helping restore normal business operations and promoting constructive interaction between financial institutions and private enterprises.
In another case involving the restructuring of an electrical appliance company, the court coordinated measures including deferred enforcement, pre-restructuring procedures, government-court coordination, and investment attraction efforts to revitalize high-quality assets and support the company’s recovery.
Stronger protection of the lawful rights and interests of private enterprises is highlighted in the cases. Courts strictly applied the principles of the law to safeguard personal and property rights, crack down on infringements, and correct improper administrative actions.
In a dispute involving online infringement against an automobile company, the court clarified the boundaries of public opinion supervision and penalized malicious defamation that damaged the company’s reputation.
In another case concerning overdue payments owed to a pharmaceutical company, the court verified the authenticity of delivery documents through judicial investigation and auditing procedures, ultimately resolving the arrears issue and protecting the company’s right to payment recovery. In administrative cases involving government commitments and agreements, courts also clarified adjudication rules on administrative compensation and protected enterprises’ legitimate reliance interests.
Through judgments in these typical cases, courts clarified behavioral boundaries and regulated improper practices that undermine market fairness, reinforcing fair competition and a law-based business environment.
In a software development contract dispute, the court invalidated a “pay-when-paid” clause used by a larger company to transfer payment risks to a smaller software developer, helping ease financial pressure on small and medium-sized enterprises.
The cases also reflect continued innovation in commercial dispute resolution mechanisms. Courts have explored diversified, convenient, efficient, and low-cost approaches to resolving business disputes while minimizing operational disruptions for enterprises.
In a foreign-related sales contract dispute, the court worked with the China Council for the Promotion of International Trade to apply a mechanism integrating commercial mediation, neutral evaluation, and judicial confirmation, enabling an efficient resolution and protecting the lawful rights and interests of Chinese private enterprises expanding overseas.
The rule of law is a cornerstone of a sound business environment and an important safeguard for stabilizing expectations, strengthening confidence, and promoting development in the private sector. Courts at all levels will continue to fully implement the Private Sector Promotion Law, strengthen judicial protection for private enterprises, and provide stronger legal support for the high-quality development of the private economy.
