China will keep treating private firms with disfavour

Significance The NPC Standing Committee that same week expanded the State Secrets Law. Information clampdowns denting business confidence undermine efforts to boost the private sector and revitalise the economy. Impacts The Private Economy Promotion Law will aim to improve conditions for domestic private actors, rather than foreign firms. Private economy legislation will be subject to much intra-Communist Party politicking, particularly from well-entrenched SOEs. Ill-defined state secrets legislation will deepen a climate of censorship, impeding information flows. Individuals and entities holding non-public information, including in the media and consulting sectors, will face heightened risks.