Regulations of Shanghai Municipality on Private Sector Promotion
Regulations of Shanghai Municipality on Private Sector Promotion
(Adopted at the 24th Session of the Standing Committee of the 16th Shanghai Municipal People's Congress on September 25, 2025)
Chapter I General Provisions
Article 1
With a view to optimizing the development environment for the private sector, ensuring the fair participation of all types of economic organizations in market competition, promoting the sound development of the private sector and the well-rounded growth of private-sector entrepreneurs, and giving fuller play to the important role of the private sector in Shanghai's efforts to develop itself as an international center for the economy, finance, trade, shipping, and scientific and technological innovation, and to accelerate the building of a socialist modern international metropolis with global influence, these Regulations are formulated in accordance with the Private Sector Promotion Law of the People's Republic of China and other relevant laws and administrative regulations, and in light of the actual circumstances of Shanghai Municipality.
Article 2
Efforts to promote the development of the private sector shall adhere to the leadership of the Communist Party of China, uphold a people-centered approach, and remain committed to the socialist system with Chinese characteristics, so as to ensure the correct political direction of private-sector development.
Shanghai Municipality shall uphold the fundamental socialist economic system. It shall unswervingly consolidate and develop the public sector of the economy, and unswervingly encourage, support, and guide the development of the non-public sector of the economy. It shall expand high-level opening-up, coordinate development and security, and make sure that the market plays a decisive role in resource allocation and the government better plays its role.
Article 3
The private sector constitutes an important component of the socialist market economy, serves as a vital driving force for advancing Chinese modernization, provides an important foundation for high-quality development, and represents a significant force in promoting the building of a great modern socialist country in all respects and the rejuvenation of the Chinese nation.
This Municipality adheres to the principles of equal treatment, fair competition, equal protection, and common development, and encourages, supports, and guides the sustained, sound, and high-quality development of the private sector in accordance with law. Private-sector organizations enjoy equal legal status, market opportunities, and development rights with other types of economic organizations.
Article 4
The municipal and district people's governments shall incorporate the promotion of the development of the private sector into the economic and social development plans, establish a coordination mechanism for such promotion, formulate and improve relevant policies and measures, and coordinate the resolution of major issues arising in the development of the private sector.
Development and reform authorities shall be responsible for overall coordination of the work to promote the development of the private sector, including: advancing research on, and the formulation of, policies for the private sector; carrying out analysis of the operation of the private sector; establishing platforms for information disclosure, decision-making consultation, and integrated services; and promoting the high-quality development of the private sector.
Authorities responsible for economy and informatization, commerce, finance, science and technology, market regulation, financial regulation, human resources and social security, public security, and justice administration, among others, shall, within the scope of their respective functions and duties, undertake work related to promoting the development of the private sector.
Article 5
Federations of industry and commerce shall play an important role in promoting the sound development of the private sector and the healthy growth of private-sector entrepreneurs. They shall give full play to their functions as bridges and assistants, strengthen theoretical and political development among operators of private-sector organizations, enhance services for the private sector, improve and standardize mechanisms through which private-sector organizations and entrepreneurs may submit requests and raise concerns; guide private-sector organizations and entrepreneurs to conduct business in accordance with law; and better safeguard their lawful rights and interests.
Article 6
Private-sector organizations and their operators shall uphold the leadership of the Communist Party of China, adhere to the socialist system with Chinese characteristics, and actively participate in the building of a great modern socialist country.
In engaging in production and business activities, private-sector organizations and their operators shall abide by laws and regulations, observe social ethics and business ethics, act with honesty and integrity, compete fairly, fulfill social responsibilities, protect the lawful rights and interests of workers, safeguard national interests and the public interest, and accept supervision by the government and society.
Private-sector organizations shall actively play a role in developing the economy, expanding employment, improving people's wellbeing, advancing scientific and technological innovation, and other areas, and shall contribute to meeting the people's growing needs for a better life.
Article 7
This Municipality shall enhance cooperation with relevant provinces and cities in the Yangtze River Delta, prioritizing the free flow of factors of production and the integration of government services. It shall advance coordination in technological and industrial innovation within the Delta, work with relevant parties to support the development of the private sector, and promote high-quality integrated development of the Yangtze River Delta and high-quality development of the Yangtze River Economic Belt.
This Municipality shall guide private-sector organizations to participate in national regional coordinated development strategies, including those concerning the Beijing-Tianjin-Hebei region and the Guangdong-Hong Kong-Macao Greater Bay Area, and encourage them to actively engage in paired collaboration, paired assistance, and paired cooperation, so as to promote coordinated regional development.
Article 8
This Municipality shall strengthen the development of the contingent of operators of private-sector organizations, reinforce theoretical and political guidance, and give full play to their important role in economic and social development. It shall cultivate and promote entrepreneurship, and guide operators of private-sector organizations to practice the core socialist values, uphold patriotism and dedication, operate in compliance with laws and regulations, pursue entrepreneurship and innovation, making contribution to society, and remain committed to the mission of developing socialism with Chinese characteristics and promoting Chinese modernization.
This Municipality shall strengthen publicity and reporting on exemplary deeds of private-sector organizations and their operators, support their participation in selection and commendation activities, guide the formation of a social environment that respects labor, creation, and entrepreneurs, and foster a favorable atmosphere across society that cares for, supports, and promotes the development of the private sector.
Article 9
The standing committees of the municipal and district people's congresses shall strengthen oversight of efforts to promote the development of the private sector by means such as hearing and deliberating special work reports and organizing inspections of compliance with laws.
Article 10
This Municipality shall, in accordance with law, implement a statistical system for the private sector, conduct statistical analysis of private-sector development, and regularly release relevant information.
This Municipality shall carry out monitoring of private-sector operations and strengthen analysis and assessment of private-sector development trends.
Chapter II Fair Competition
Article 11
This Municipality shall strictly implement the nationally unified negative list system for market access. In fields not included in the negative list, all types of economic organizations, including private-sector organizations, may enter the market on an equal basis in accordance with law.
Authorities including development and reform, commerce, and market regulation shall establish a regular mechanism for reviewing and eliminating market access barriers, so as to ensure that no administrative licensing requirements or restrictive market access conditions are unlawfully imposed beyond those specified in the negative list.
Article 12
People's governments at all levels within this Municipality and their relevant departments shall implement the fair competition review system. They shall subject all policies and measures they formulate that involve the production and business activities of market entities to fair competition review, conduct regular evaluations, and promptly review, revise, or repeal any policies or measures that contain provisions impeding the unified national market or fair competition, so as to ensure that private-sector organizations participate fairly in market competition.
The market regulation authorities shall make public reporting channels, accept reports concerning policies and measures that violate the fair competition review system, and handle such reports in accordance with law.
Article 13
People's governments at all levels in this Municipality and their relevant departments shall treat all types of economic organizations equally when performing the following functions, and shall not impose restrictions on, or set implicit conditions for, private-sector organizations:
1. formulating and implementing economic and social development plans and industrial policies;
2. managing of development and utilization of natural resources such as land and minerals;
3. processing of administrative licensing matters such as qualifications and certifications, and handling of project applications;
4. evaluating professional title and talent assessment;
5. providing human resources services and managing household registration;
6. conferring of honors such as commendations and awards for merits;
7. formulating local standards and technical specifications;
8. allocating energy consumption indicators and managing carbon emission quotas;
9. opening public data; and
10. other duties involving the allocation of factor resources and the provision of public service resources.
Article 14
This Municipality shall improve the administration system for public resource transactions, strengthen public resource trading platforms, establish equal conditions for all types of economic organizations to participate in public resource transactions, optimize transaction service procedures, and disclose, in accordance with law, information concerning transaction rules, procedures, results, supervision, and credit. It shall ensure the fair participation of all types of economic organizations in public resource transactions.
Unless otherwise provided by laws, administrative regulations, or State provisions, projects included in the catalogue of public resource transactions shall be conducted, in accordance with law, on public resource trading platforms through competitive methods such as tendering, auction, or listing.
Article 15
This Municipality shall, in accordance with law, safeguard the equal participation of all types of economic organizations in government procurement, tendering, and bidding activities. Except as otherwise provided by law, purchasers and procurement agencies in government procurement, as well as tenderers of projects for which tendering is mandatory by law, shall not engage in any of the following acts that restrict or exclude the fair participation of private-sector organizations in government procurement or bidding activities:
1. restricting the type of ownership, organizational form, or equity structure of suppliers or tenderers;
2. limiting the forms of security deposits, or designating specific financial institutions, guarantee institutions, or insurance institutions to issue bonds or policies;
3. imposing qualification requirements on suppliers or tenderers by establishing unreasonable project databases, roster libraries, candidate libraries, or qualification libraries;
4. restricting supplier participation in government procurement activities by setting conditions related to supplier size, years since establishment, tax payment amount, or performance records that are unrelated to contract performance or clearly exceed the requirements of the government procurement project;
5. requiring suppliers to purchase designated software or services as a condition for participating in electronic government procurement activities;
6. failing to publish or provide procurement project and tender information in a timely, effective, and complete manner in accordance with law, thereby hindering suppliers or tenderers from participating in government procurement or bidding activities; or
7. other acts that restrict or exclude private-sector organizations from participating equally in government procurement and bidding activities.
Article 16
Market regulation departments and other relevant departments shall, within the scope of their respective duties and powers, prevent and curb monopolistic conduct and acts of unfair competition in market economic activities, and lawfully handle acts that abuse administrative power to eliminate or restrict competition, so as to create a sound market environment for private-sector organizations.
Chapter III Investment Promotion
Article 17
This Municipality shall support private-sector organizations in investing in and developing industrial projects in sectors designated as encouraged under the national Catalogue for Guiding Industrial Restructuring and in line with the Municipality's key industrial development priorities. It shall support private-sector organizations in investment and entrepreneurship in strategic emerging industries and future industries, foster the growth of high-growth and leading enterprises—including enterprises that use specialized and sophisticated technologies to produce novel and unique products, as well as unicorn and gazelle enterprises—and encourage private-sector organizations to carry out technological upgrading and transformation of traditional industries, participate in the investment in and construction of modern infrastructure, and promote improvements in digitalization, intelligence, and green development.
Article 18
Authorities of development and reform, economy and informatization, and other relevant authorities shall, in conjunction with this Municipality's development plans and industrial policies, release information on major projects in which private investment is encouraged, and guide private-sector enterprises to invest in key sectors.
Private investment projects that are consistent with national strategies and industrial policy orientations shall, in accordance with relevant provisions, be included in the list of major construction projects and enjoy relevant policies on an equal basis.
Article 19
This Municipality shall support private-sector organizations in revitalizing existing assets through diversified means, enhancing their capacity for reinvestment, and improving asset quality and efficiency.
People's governments at all levels in this Municipality and their relevant departments shall support private-sector organizations in participating in public-private partnership projects. Such projects shall reasonably define the rights and obligations of the parties, and clearly specify matters including methods for obtaining investment returns, risk-sharing mechanisms, and dispute resolution arrangements.
This Municipality shall support private-sector organizations in participating in mixed-ownership reform of State-owned enterprises through equity cooperation.
Article 20
This Municipality shall encourage private-sector organizations to establish functional institutions within its jurisdiction, including research and development centers, global supply chain management centers, capital settlement centers, and trade headquarters. Relevant authorities shall provide support and services in areas such as the application for innovative products, the cross-border movement of research and development materials, talent residency arrangements, cross-border fund settlement, and data flows.
Article 21
People's governments at all levels in this Municipality and their relevant departments shall, in areas including project promotion and matchmaking, preliminary project preparation, handling of filing and approval matters, access to production factors, and government investment support, provide standardized, efficient, and convenient services for investment by private economic organizations by optimizing procedures, setting time limits for completion, and adopting other facilitative measures.
Chapter IV Financing Services
Article 22
Financial institutions shall treat private-sector organizations on an equal basis with other types of economic organizations with respect to credit granting, loan conditions, credit management, risk control, service charges, and other related matters, and shall apply consistent standards regarding due diligence-based exemption from liability for their personnel handling loans for all types of economic organizations.
Where a financial institution breaches its agreement with a private-sector organization as borrower by unilaterally increasing loan disbursement conditions, suspending loan disbursement, or prematurely calling in a loan, it shall bear liability for breach of contract in accordance with law.
Article 23
This Municipality shall implement the differentiated financial service policies for small and micro private-sector organizations formulated by the State, promote financial institutions' strengthening of resource support for small and micro financial service for these organizations, and maintain preferential support.
The financial regulatory authorities of this Municipality shall, in conjunction with the local offices of central financial regulatory authorities and relevant municipal authorities, promote the improvement of a multi-tiered inclusive financial institutional system, steadily strengthen financing matchmaking, and enhance the coverage and accessibility of financial services.
Article 24
The financial regulatory authorities of this Municipality shall, in conjunction with relevant authorities, guide banking financial institutions and local financial organizations to lawfully expand the scope of eligible collateral and pledgeable assets, and to provide loans secured by pledged rights such as accounts receivable, warehouse receipts, equity interests, and intellectual property rights to private-sector organizations.
Where the cash flow generated from the normal production and business activities of a private-sector organization and the value of the collateral it provides meet the loan approval requirements, no unlawful additional requirement shall be imposed for shareholders, de facto controllers, legal representatives, directors, supervisors, senior management personnel, or their close relatives to provide guarantee.
Article 25
The municipal and district people's governments shall improve the government-backed financing guarantee system, promote the expansion in scale and coverage of government-backed financing guarantee services, support government-backed financing guarantee institutions in reasonably determining guarantee fee rates, optimizing compensation procedures, improving operational efficiency, and refining the due diligence-based exemption mechanism for government-backed financing guarantee business.
Article 26
Financial institutions shall, in accordance with State provisions and the provisions of this Municipality, develop and provide financial products and services tailored to the characteristics of the private sector, facilitate financing for private-sector organizations with sound credit standing, enhance alignment between credit supply and loan tenors and the financing needs and capital utilization cycles of private-sector organizations, and improve the availability and convenience of financial services.
Banking financial institutions are encouraged to increase support for first-time loans and unsecured credit loans, and to expand the scale and coverage of seamless loan renewal and repayment-free loan renewal services.
Article 27
The municipal authorities responsible for financial regulation, economy and informatization, State-owned assets supervision, and data administration shall, in coordination with the local offices of central financial regulatory authorities, encourage financial institutions to cooperate with core enterprises in supply chains and promote the standardized application of supply chain finance products.
Core enterprises in supply chains are encouraged to make full use of blockchain technology to improve supply chain management, enhance financing accessibility for private-sector organizations within the supply chain, and prevent financial risks.
Article 28
This Municipality shall strengthen financial support for scientific and technological innovation, establish a science and technology finance service system characterized by diversified channels, multiple tiers, comprehensive coverage, and sustainability, and promote innovation in science and technology finance service models.
Financial institutions shall be supported in developing high-quality science and technology finance products, expanding the scale of intellectual property pledge financing, and providing full life-cycle financial services for technology-based private-sector organizations through multiple channels, including science and technology loans, science and technology bonds, and science and technology insurance.
Article 29
The municipal financial regulatory authorities shall, in conjunction with the local offices of central financial regulatory authorities and other relevant entities, improve coordination mechanisms, strengthen services such as listing guidance and legal support, and support eligible private-sector organizations in accessing direct financing on an equal basis through shares, bonds, and other instruments, thereby broadening their financing options.
Article 30
This Municipality shall enhance the guiding and leveraging role of government investment funds and State-owned capital funds, attract the participation of private capital in an orderly manner, and reasonably determine the duration of such funds. These funds shall be leveraged as long-term and patient capital to perform cross-cyclical and counter-cyclical adjustment functions. In sectors requiring long-term strategic development, follow-on investment mechanisms may be adopted to ensure continuity of investment.
Article 31
Relying on the Shanghai Financing Credit Service Platform, this Municipality shall further advance the lawful collection, aggregation, sharing, opening, and application of financing-related credit information; support banking financial institutions in developing distinctive financing products; promote the integration of financing product information into the Shanghai Financing Credit Service Platform; and increase the proportion of credit-based lending to private-sector organizations.
This Municipality supports credit reporting agencies in providing diversified credit reporting products and services for the financing of private-sector organizations, so as to meet application needs in a wider range of scenarios. It also supports credit rating agencies in optimizing rating methodologies for private-sector organizations, increasing the effective supply of credit ratings, and facilitating access to financing.
Chapter V Technological Innovation
Article 32
This Municipality encourages and supports private-sector organizations in enhancing their scientific and technological innovation capacity and in playing an active role in developing Shanghai as an international science and technology innovation center, cultivating new quality productive forces, and building a modern industrial system.
Leveraging its strengths in the agglomeration of innovation resources, this Municipality shall guide private-sector organizations to increase investment in research and development; strengthen basic, frontier, and exploratory research; develop key core technologies, common foundational technologies, and cutting-edge interdisciplinary technologies; promote the integrated advancements in technological and industrial innovation; and foster new industries, new business models, and new growth drivers.
Article 33
This Municipality encourages and supports private-sector organizations in participating in the development of national-level and municipal-level innovation platforms, as well as in major research programs, technological breakthrough, and science and technology projects.
This Municipality supports private-sector organizations in jointly establishing research funds with science and technology authorities, with research topics aligned to their technological innovation needs. Private-sector organizations are encouraged to participate in major innovation missions and to achieve breakthroughs in core and key technologies through task-based organization mechanisms, including open competition mechanisms for selecting the most capable project leaders and multi-team research mechanisms aimed at identifying optimal pathways and outcomes.
Article 34
This Municipality shall establish a tiered cultivation system focusing on technology-based small and medium-sized enterprises, high-tech enterprises, technology-oriented "Little Giant" enterprises, and leading science and technology enterprises. It shall formulate and implement differentiated and category-specific support policies; coordinate the application of fiscal, taxation, financial, and talent-related policy measures to support the development of innovators; strengthen the principal role of enterprises in technological innovation decision-making, R&D investment, research organization, and commercialization of research outcomes; and increase the supply of high-quality scientific and technological advancements.
Article 35
This Municipality shall promote enterprise-led integrated innovation involving enterprises, universities, research institutes, and users. It supports private-sector organizations in collaborating with higher education institutions, research institutes, new-type R&D institutions, and other innovation entities to jointly establish technology R&D institutions or innovation consortia, and to carry out collaborative research, development, and commercialization of research outcomes.
This Municipality shall expand government procurement of innovative products and leverage insurance compensation mechanisms for newly developed major technological equipment to support the iterative application of innovative products developed by private-sector organizations.
Article 36
This Municipality shall improve mechanisms for the open sharing of scientific and technological innovation resources, and promote the open and shared use of major science and technology infrastructure, large-scale scientific instruments, computing power resources, experimental materials, and other innovation resources, so as to provide equitable services for the technological innovation activities of private-sector organizations.
This Municipality supports private-sector organizations in lawfully participating in the research and development of digital and intelligent common technologies and in the development of the data factor market, as well as in the lawful and reasonable use of data. Private-sector organizations are encouraged to utilize open public data for scientific research, consulting services, product development, data processing, and other activities, thereby enhancing the sharing, inclusiveness, and security of data factors and fully leveraging their enabling role.
Article 37
This Municipality supports private-sector organizations in strengthening the application of new technologies and in conducting pilot applications of new technologies, products, services, and business models in major projects, major events, and major initiatives, so as to promote the industrial incubation and broader application of innovative outcomes derived from application scenarios.
State-owned enterprises are encouraged to open and provide application scenarios and testing environments related to the digital transformation of State-owned assets and enterprises in an orderly manner, thereby enabling private-sector organizations to optimize production processes, enhance management efficiency, and innovate business models in the digital economy.
Article 38
This Municipality shall improve support policies for the science and technology services sector, promote the development of specialized science and technology service platforms, and encourage all types of science and technology service institutions to innovate service models, so as to provide private-sector organizations with services including research and development, inspection and testing, science and technology consulting, technology transfer and commercialization, concept verification and venture incubation, science and technology finance, intellectual property services, science and technology data and information services, and science and technology talent training, thereby supporting scientific and technological innovation and industrial development.
Article 39
This Municipality supports private-sector organizations in strengthening intellectual property compliance management standards, carrying out collaborative intellectual property protection, establishing and operating patent pools in key industries in accordance with market rules, and exploring new models for open and shared intellectual property.
This Municipality shall strengthen services for rapid and coordinated intellectual property protection, diversified dispute resolution, rights protection assistance, and guidance and risk alerts for responding to overseas intellectual property disputes; intensify administrative and judicial protection of intellectual property; and combat illegal and criminal activities in accordance with law in the field of intellectual property.
This Municipality shall develop guidelines for the protection of trade secrets in key industries and sectors, and strengthen the protection of trade secrets of private-sector organizations.
Article 40
This Municipality shall safeguard the lawful participation of private-sector organizations in the formulation of various standards, and strengthen information disclosure and public supervision in standard-setting activities.
This Municipality shall guide private-sector organizations to transform scientific and technological innovation outcomes into enterprise standards; encourage them to formulate enterprise standards with technical requirements exceeding those of recommended standards and reaching internationally advanced levels, and to participate in international standardization activities; and promote the acquisition of international certification for the technologies, products, and services of private-sector organizations.
Article 41
This Municipality encourages private-sector organizations to integrate deeply into global innovation networks and to enhance the internationalization of scientific and technological innovation by participating in global science and technology cooperation through such means as hosting international science and technology exchange events, working with international partners to establish laboratories and R&D bases, and setting up overseas research and development centers and incubation platforms.
Chapter VI Foreign Trade and Economic Cooperation
Article 42
This Municipality shall comprehensively align with international high-standard economic and trade rules; upgrade trade in goods; innovate trade in services; develop digital trade; promote the integrated development of domestic and foreign trade; and support private-sector organizations in participating in offshore trade, offshore financial activities, and cooperation across global industrial, supply, and value chains.
The municipal commerce authorities shall, in conjunction with relevant departments, support private-sector organizations in consolidating traditional markets, expanding into emerging markets, and promoting the diversification of trade markets.
Article 43
This Municipality encourages private-sector organizations to play an active role in enhancing high-end shipping services and advancing smart and green shipping development. It supports private-sector organizations in participating in the development of the shipping and logistics industrial chain, innovating shipping and logistics business and service models, and improving the efficiency and service quality of shipping and logistics.
Article 44
This Municipality shall improve the comprehensive overseas service system and establish integrated "going global" service centers to provide private-sector organizations with end-to-end support in areas including policy and regulatory guidance, cross-border financing, cross-border data flows, investment protection, and risk prevention and control, thereby supporting their expansion into global markets.
Article 45
This Municipality shall rely on the China (Shanghai) International Trade Single Window to provide private-sector organizations engaged in international trade with full-process electronic services for customs clearance and logistics, and to enhance the facilitation of trade financing, credit insurance, export tax rebates, and related services.
Article 46
In accordance with State provisions, this Municipality shall optimize cross-border financial facilitation measures, expand cross-border financing channels, improve the efficiency of cross-border payment and settlement, enhance insurance support services, reduce cross-border transaction costs for private-sector organizations, and prudently address risks arising from exchange rate fluctuations.
Article 47
The municipal authorities of commerce shall, in conjunction with relevant municipal authorities, advance the development of international economic and trade compliance frameworks, guide industry associations and chambers of commerce in strengthening training in compliance systems, organize compliance exchange activities, and enhance the international economic and trade compliance capacity of private-sector organizations.
The municipal authorities of commerce shall regularly release international economic and trade compliance information, compile thematic economic and trade compliance guidelines, and improve information inquiry systems related to export controls, economic sanctions, and other regulatory measures, thereby providing support services for private-sector organizations to conduct international operations in compliance with applicable requirements.
Article 48
All types of trade promotion institutions in this Municipality shall, in accordance with State provisions, organize private-sector organizations to participate in domestic and overseas exhibitions and trade fairs, provide information and related services for their participation therein, and enhance the capacity of private-sector organizations to explore domestic and international markets.
Article 49
Professional service institutions in areas such as finance, legal services, accounting, taxation, consulting, and intellectual property are encouraged to pursue a global footprint, expand their cross-border service capabilities, and provide market-oriented, professional, and internationalized services to private-sector organizations.
Article 50
The municipal authorities of commerce shall, in conjunction with the municipal authorities of economy and informatization, human resources and social security, and other relevant authorities, provide assistance in the form of consultation, training, and technical guidance to private-sector organizations affected by changes in the trade environment, and support and guide such organizations in independently carrying out trade adjustment.
The municipal authorities of commerce shall, in conjunction with relevant municipal authorities, formulate policy measures for responding to trade frictions, release information on trade friction cases and response guidelines, guide private-sector organizations in addressing trade friction cases, and provide them with guidance on applying for trade remedies in accordance with State provisions.
Chapter VII Standardized and Compliant Operation
Article 51
Within private-sector organizations, organizations of the Communist Party of China and Party members shall conduct Party activities in accordance with the Constitution of the Communist Party of China and relevant intra-Party regulations; Party organizations shall give full play to their political guiding role, and Party members shall give full play to their vanguard and exemplary role, thereby contributing to the sound development of private-sector organizations.
Article 52
Private-sector organizations shall, in conducting production and business activities, comply with laws and regulations concerning labor employment, workplace safety, occupational health, social security, ecological and environmental protection, quality standards, intellectual property, cybersecurity and data security, fiscal and taxation matters, and finance, among others.
They shall not seek illegitimate interests through bribery, fraud, or other improper means, nor disrupt market or financial order, damage the ecological environment, infringe upon the lawful rights and interests of workers, or harm the public interest.
Relevant authorities shall supervise and administer the production and business activities of private-sector organizations in accordance with law.
Article 53
This Municipality supports private capital in serving economic and social development and, in accordance with State provisions, shall improve the institutional frameworks and regulatory rules governing capital conduct, regulate and guide the sound development of private capital in accordance with law, and safeguard the socialist market economic order and the public interest.
This Municipality supports private-sector organizations in strengthening risk prevention and management, and encourages them to focus on their principal businesses, strengthen the real economy, and enhance their core competitiveness.
Article 54
Private-sector organizations shall improve their governance structures and management systems, regulate the conduct of operators, strengthen internal oversight, and achieve standardized governance. In accordance with law, they shall establish and improve democratic management systems, with the employees' congress as the basic form.
Private-sector organizations meeting the relevant conditions are encouraged to establish and improve a modern enterprise system with Chinese characteristics.
This Municipality shall improve institutions and mechanisms for source-level corruption prevention and governance in private-sector organizations; support and guide such organizations in establishing and improve internal audit systems and integrity risk controls; and help them improve lawful and compliant business management, including the timely prevention, detection, and remediation of illegal or non-compliant conduct in business operations.
Trade unions and other mass organizations within private-sector organizations shall, in accordance with law and their charters, carry out activities, strengthen theoretical and political guidance and legal education for employees, safeguard employees' lawful rights and interests, play their role in enterprise democratic management, promote the improvement of collective wage consultation systems, and foster harmonious labor relations.
Article 55
Private-sector organizations shall, in accordance with laws, administrative regulations, and the unified national accounting system, strengthen financial management, standardize accounting practices, prevent financial fraud, clearly distinguish between their business income and expenditures and the personal income and expenditures of their operators, and realize the separation of the property of private-sector organizations from the personal property of their operators.
Article 56
This Municipality supports private-sector organizations in enabling employees to share development outcomes by means such as strengthening skills training, expanding employment, and improving wage distribution systems.
This Municipality shall work to establish a social responsibility evaluation system and incentive mechanisms for private-sector organizations, and shall encourage and guide such organizations to actively fulfill their social responsibilities and to voluntarily participate in public welfare and charitable activities, as well as emergency response and disaster relief efforts.
Chapter VIII Services
Article 57
This Municipality shall improve the whole-process service mechanism benefiting enterprises, enhance the level of integrated online government services through the Government Online-Offline Shanghai, establish a unified portal for the inquiry, application, and disbursement of enterprise-supporting policies, optimize application and approval procedures, and expand the scope of policies delivered through "direct access with rapid benefits" and "automatic entitlement without application". It shall proactively provide policy-to-enterprise matching services to private-sector organizations and other business entities, and improve the convenience and transparency of policy application and disbursement.
State organs and their staff within this Municipality shall perform their duties in accordance with law and with due diligence in promoting the development of the private sector. In their work-related interactions, staff of state organs and operators of private-sector organizations shall comply with laws and regulations and maintain integrity and probity.
People's governments at all levels within this Municipality and their relevant departments shall establish smooth and effective government-enterprise communication mechanisms, promptly solicit opinions and suggestions from all types of economic organizations, including private-sector organizations, and address the reasonable issues they raise in a timely manner.
Article 58
When formulating local regulations, government rules, or normative documents closely related to the production and business activities of business entities, or when making major policy decisions, this Municipality shall extensively solicit opinions and suggestions from private-sector organizations and relevant industry associations and chambers of commerce, with particular emphasis on fully hearing the views of small and medium-sized private-sector organizations. Prior to implementation, a necessary period for adaptation and adjustment shall be provided in light of actual circumstances.
The formulation of local regulations, government rules, and normative documents shall, in accordance with relevant provisions, undergo legality review, fair competition review, and consistency assessment of macro-policy orientation, so as to ensure continuity and stability. Except for special provisions made for the better protection of the lawful rights and interests of citizens, legal persons, and other organizations, such instruments shall not have retroactive effect.
Article 59
In accordance with national plans, this Municipality shall implement policies on the renewal of industrial and commercial land-use rights upon expiration. It shall streamline approval procedures, enhance service efficiency, and encourage private-sector organizations, subject to compliance with planning requirements, to improve the utilization efficiency of their industrial land and increase plot ratios through measures such as factory area redevelopment and underground space development.
Article 60
This Municipality shall support cooperation between higher education institutions, vocational colleges, research institutions, and various vocational skills training institutions and private-sector organizations, in order to cultivate professional personnel and industrial workers that meet the needs of high-quality industrial development.
Guided by innovation capacity, quality, effectiveness, and contribution, this Municipality shall formulate and improve professional title evaluation standards in relevant fields, smooth professional title evaluation channels for private-sector organizations, and provide support for the introduction and cultivation of high-level and urgently needed talent by private-sector organizations.
Article 61
The municipal and district people's governments shall coordinate the advancement of development platforms such as high-tech industrial development zones, economic and technological development zones, comprehensive bonded zones, as well as various industrial parks and science parks, and promote the clustering of private-sector organizations along upstream and downstream segments of industrial chains.
This Municipality shall support the establishment of public service platforms within such development platforms, providing services including industrial infrastructure support and market expansion, thereby reducing the production and operating costs of private-sector organizations.
Article 62
Municipal-level administrative law enforcement authorities shall coordinate and standardize administrative inspection activities within their respective systems, unify standards for enterprise-related inspections, and enhance the standardization, consistency, and coordination of inspections.
Administrative law enforcement authorities shall implement classified and categorized supervision based on factors such as industry risk profiles and credit status of private-sector organizations, reasonably determine the proportion and frequency of random inspections, carry out differentiated and targeted regulation, and apply technologies such as big data and artificial intelligence to conduct remote supervision and early-warning risk prevention.
In conducting law enforcement activities, administrative law enforcement authorities shall avoid, or to the greatest extent possible minimize, interference with the normal production and business operations of private-sector organizations, and shall promptly respond to and address their reasonable and lawful requests.
Article 63
Administrative penalties imposed for illegal acts committed by private-sector organizations and their operators shall be applied on an equal basis with those imposed on other economic organizations and their operators.
This Municipality shall implement a system under which no administrative penalty is imposed for minor violations in accordance with law. Municipal-level administrative law enforcement authorities shall improve, within their respective systems, the lists of minor violations for which administrative penalties are not imposed in accordance with law.
Article 64
This Municipality shall improve mechanisms for clarifying litigation-related information and for judicial credit data sharing and joint governance, so as to prevent private-sector organizations from facing unequal treatment in obtaining financing, participating in market competition, and other areas due to incomplete information.
Article 65
This Municipality shall improve the credit restoration system and explore a collective assistance mechanism for credit restoration. Discredited parties shall take the initiative to rectify the discrediting conduct.
Where a private economic organization and/or its operator satisfies the conditions for credit restoration, it/they may apply for credit restoration. The relevant authorities shall, in accordance with law, promptly terminate public disclosure of, or remove, discrediting information; update the relevant credit assessment results; lift the corresponding disciplinary measures; and implement coordinated credit restoration across the relevant public credit information platforms.
Article 66
This Municipality shall improve market-oriented and professional out-of-court restructuring mechanisms, and promote effective alignment between out-of-court restructuring and in-court reorganization proceedings.
This Municipality shall establish and improve a credit restoration system for enterprises undergoing bankruptcy reorganization, explore differentiated credit restoration standards in key fields as compared with enterprises in normal operation, and support bankruptcy administrators in submitting, on behalf of the enterprise, applications for restoration/removal of information relating to, among others, administrative penalties, tax credit ratings, information on major tax law violations and discredited taxpayers, the list of enterprises with abnormal business operations in the market regulation field, and the list of seriously illegal and discredited entities. After the people's court issues a ruling approving the reorganization plan, the reorganizing enterprise or the administrator may, on the basis of the written ruling, add a data-subject statement to the basic financial credit information database, so as to reflect the progress of the enterprise's reorganization in a timely manner.
Article 67
This Municipality shall improve a diversified dispute resolution mechanism featuring effective coordination and seamless linkage among mediation, arbitration, administrative adjudication, administrative reconsideration, and litigation; strengthen coordination among commercial mediation, arbitration, notarization, and appraisal/forensic evaluation; optimize litigation–mediation linkage mechanisms; and provide diversified commercial dispute resolution services for all types of economic organizations, including private-sector organizations.
Article 68
Relevant industry associations and chambers of commerce shall, in accordance with laws, regulations, and their charters, perform coordination and self-regulation functions; represent the industry and their members in communicating to the relevant authorities the opinions and suggestions, and the reasonable demands, of private-sector organizations and their operators; participate in the formulation of industry development plans; and provide services including information and consultation, publicity and training, market development, exchange and cooperation, protection of rights and interests, and dispute handling.
Chapter IX Protection of Rights and Interests
Article 69
The lawful rights and interests of private-sector organizations and their operators, including personal rights, property rights, and operational autonomy, shall be protected by law, and no entity or individual may infringe upon them.
Article 70
The name right, right of reputation, and right of honor of private-sector organizations, and the right of reputation, right of honor, right to privacy, rights and interests in personal information, and other personality rights of the operators of private-sector organizations, shall be protected by law.
No entity or individual may, through the internet or other channels of dissemination, infringe upon the lawful rights and interests of private economic organizations and their operators by means such as insult or defamation. Network service providers shall, in accordance with relevant laws and regulations, strengthen the management of online information content, establish and improve complaint and reporting mechanisms, promptly dispose of unlawful information that maliciously infringes upon the lawful rights and interests of the parties concerned, and report to the competent authorities.
Where the personality rights of a private economic organization and/or its operator are maliciously infringed, it/they shall have the right to apply to the people's court, in accordance with law, for measures ordering the perpetrator to cease the relevant conduct. Where such malicious infringement causes actual losses to the private-sector organization in production and operations, investment and financing, or other activities, the infringer shall bear liability for compensation in accordance with law.
Article 71
No entity or individual may, under the pretext of deleting posts, eliminating adverse impact, or similar grounds, demand money or property from, or seek other improper benefits from, private-sector organizations or their operators.
The relevant municipal and district administrative authorities shall, in accordance with law, regulate profit-driven professional claims for compensation and professional reporting activities; establish and share an abnormal list for complaints and reports and apply it in administration; and may, in accordance with law, decline to accept, or terminate mediation of, complaints relating to profit-driven professional claims for compensation.
Article 72
No entity or individual may compel, or compel in a disguised form, private-sector organizations or their operators to purchase products, accept designated services, provide sponsorships or donations, or make imposed payments; nor may any entity or individual unlawfully compel, or compel in a disguised form, private-sector organizations or their operators to participate in evaluations, assessments, commendations, training, or other similar activities.
Article 73
The sealing up, seizure, and freezing of property involved in a case shall be conducted strictly within statutory authority and in accordance with the statutory conditions and procedures. A strict distinction shall be drawn between: (1) illegal proceeds and other case-related property, and lawful property; (2) the property of a private economic organization and the personal property of its operators; and (3) the property of the person involved in the case and the property of third parties. No property shall be sealed up, seized, or frozen ultra vires or beyond the permitted scope, amount, or time limit.
Property that has been sealed up or seized shall be properly kept in custody and shall not be used or damaged. Where any loss is caused, compensation liability shall be borne in accordance with law.
Article 74
In handling cases, a strict distinction shall be made between economic disputes and economic crimes, and the provisions of law on limitation periods for prosecution shall be observed. Where production and business activities do not violate the Criminal Law, they shall not be treated as crimes. Where the facts are unclear, the evidence is insufficient, or criminal liability is not to be pursued in accordance with law, the case shall be dismissed, a decision of non-prosecution shall be made, the proceedings shall be terminated, or a judgment of acquittal shall be rendered, as appropriate.
Unlawful interference in economic disputes by administrative or criminal means is prohibited.
Article 75
The public security organs of this Municipality shall strengthen cross-regional law enforcement cooperation with public security organs of other localities and standardize cross-regional law enforcement activities involving enterprises. Where public security organs carry out cross-regional law enforcement activities involving enterprises, they shall do so in accordance with law, by requesting cooperation from the local public security organ in accordance with State provisions and conducting such activities with its assistance, or by commissioning the local public security organ to act on their behalf.
Article 76
Where a private economic organization and/or its operators object to a determination that their production or business activities are unlawful, or object to compulsory measures taken by State organs of this Municipality, they may, in accordance with law, report the matter to the relevant authorities or file a complaint, apply for administrative reconsideration, and/or institute legal proceedings.
Article 77
The people's procuratorates shall, in accordance with law, exercise legal supervision over litigation activities involving private-sector organizations and their operators, and shall promptly accept and review relevant petitions and complaints. Where any illegality is discovered, they shall, in accordance with law, file a protest, issue corrective opinions, or make procuratorial recommendations.
Article 78
State organs, public institutions, and State-owned enterprises of this Municipality shall, in accordance with law or as agreed in contract, pay amounts due to private-sector organizations in a timely manner. They shall not refuse or delay payment on grounds such as personnel changes, internal payment-approval procedures, or—where not agreed in the contract—pending approval of completion acceptance, final accounts settlement, audit, or similar matters. Unless otherwise provided by laws or administrative regulations, they shall not compel the use of audit results as the basis for settlement.
This Municipality shall improve complaint-handling, supervisory, and accountability mechanisms for arrears. Where any State organ, public institution, or State-owned enterprise of this Municipality refuses or delays payment of amounts due to private-sector organizations, liability shall be pursued in accordance with law.
The audit authorities shall, in accordance with law, strengthen audit supervision over payments by State organs, public institutions, and State-owned enterprises of this Municipality to private-sector organizations.
Article 79
Where a large enterprise procures goods, works, services, or the like from a small or medium-sized private economic organization, it shall reasonably agree on the payment term and make payment in a timely manner, and shall not make its payment to the small or medium-sized private economic organization conditional upon its receipt of payment from any third party.
In cases concerning arrears owed to small or medium-sized private-sector organizations, the people's courts shall, in accordance with law, promptly docket, hear, and enforce such cases, and may conduct mediation on the principles of voluntariness and legality, so as to safeguard the lawful rights and interests of small and medium-sized private-sector organizations.
Article 80
This Municipality shall improve the regulatory regime for enterprise-related charges and refine mechanisms for the evaluation, review, and vetting of policies on such charges.
Where the provision of intermediary services is made a condition for administrative approval, such condition shall have a basis in laws, regulations, or decisions of the State Council; where there is no such basis, it shall not be imposed as a condition for administrative approval. Where a private economic organization lawfully engages an intermediary service provider, administrative organs shall not abuse their powers to designate, or designate in a disguised form, an intermediary service provider. Where an administrative organ lawfully commissions an intermediary service provider, it shall not pass on the costs of such intermediary services to private-sector organizations.
Industry associations and chambers of commerce shall regulate charges relating to private-sector organizations, and shall not, without authorization, add charge items or raise charge standards.
Article 81
People's governments at all levels within this Municipality and their relevant departments shall honor, in accordance with law, policy commitments lawfully made, and perform various contracts lawfully concluded. They shall not breach or repudiate such commitments or contracts on grounds such as adjustments to administrative divisions, changes of government, institutional or functional restructuring, or changes of responsible personnel.
Where it is necessary, for reasons of national interests or the public interest, to alter policy commitments or contractual arrangements, such alteration shall be carried out in accordance with statutory authority and procedures, and compensation shall be provided for losses thereby incurred by private-sector organizations.
Chapter X Legal Liability
Article 82
Where any of the following acts is committed in violation of Article 12, 14, or 15 of these Regulations, the competent authority shall order rectification. Where adverse consequences or impacts are caused, disciplinary sanctions shall be imposed, in accordance with law, on the responsible leading officials and the directly responsible persons:
1. issuing any policy or measure without undergoing a fair competition review, or where such policy or measure fails to pass a fair competition review; or
2. restricting or excluding private-sector organizations in transactions of public resources such as bidding and tendering and government procurement.
Article 83
Where compulsory measures such as the sealing up, seizure, or freezing of property are unlawfully taken in violation of Article 73 of these Regulations, the competent authority shall order rectification. Where losses are caused, compensation shall be made in accordance with law. Where adverse consequences or impacts are caused, disciplinary sanctions shall be imposed, in accordance with law, on the responsible leading officials and the directly responsible persons.
Article 84
Where, in violation of Article 78 or 81 of these Regulations, a State organ, public institution, or State-owned enterprise of this Municipality refuses or delays payment of amounts due to a private economic organization in contravention of laws or regulations or the relevant contract, or where a people's government at any level in this Municipality or any of its relevant departments fails to honor policy commitments lawfully made to a private economic organization or to perform contracts lawfully concluded with it, the competent authority shall order correction. Where losses are caused, compensation shall be made in accordance with law. Where adverse consequences or impacts are caused, disciplinary sanctions shall be imposed, in accordance with law, on the responsible leading officials and the directly responsible persons.
Where, in violation of Article 79 of these Regulations, a large enterprise refuses or delays payment of amounts due to a small or medium-sized private economic organization in contravention of laws or regulations or the relevant contract, it shall bear corresponding legal liability in accordance with law.
Article 85
Where any act in violation of these Regulations infringes upon the lawful rights and interests of a private-sector organization and/or its operators, administrative penalties shall be imposed where so provided by laws or regulations. Where personal injury or property loss is caused, civil liability shall be borne in accordance with law. Where a crime is constituted, criminal liability shall be pursued in accordance with law.
Article 86
Where a private-sector organization and/or its operators violate laws or regulations in the course of production and business operations, the competent authority shall order rectification and impose administrative penalties in accordance with law. Where personal injury or property loss is caused, civil liability shall be borne in accordance with law. Where a crime is constituted, criminal liability shall be pursued in accordance with law.
Article 87
Where a private-sector organization and/or its operators fraudulently or by other improper means obtain commendations or honors, preferential policies, or other benefits, the commendations or honors obtained shall be revoked and the preferential treatment enjoyed shall be canceled, and penalties shall be imposed in accordance with law. Where a crime is constituted, criminal liability shall be pursued in accordance with law.
Chapter XI Supplementary Provision
Article 88
These Regulations shall be effective as of October 20, 2025.