CHINA started drafting a law to promote the development of the private sector economy, in the latest step by the Asian nation to recharge confidence and boost innovation.

The law will focus on the “core concerns” of private companies, including protecting their property rights, guaranteeing the interests of entrepreneurs, and managing missed payments for small- and medium-sized enterprises, China’s state broadcaster CCTV reported on Wednesday (Feb 21). It cited a meeting by the Ministry of Justice, the National Development and Reform Commission (NDRC) and the national parliament’s legislative affairs commission.

The law aims to keep policy implementation stable and consistent, motivate businesses to be innovative and enforce rules so that state-owned and private companies are treated equally, CCTV added. The authorities vowed to speed up the legislative process for the law, the outlet reported.

The move marks the latest attempt by the world’s second-largest economy to improve its productivity. China has been battling deflationary pressures, sluggish confidence and a persistent real estate slump.

In January, a committee under the national parliament listed the law as one of 22 items that “are necessary to be legislated.” The group’s report said they should be added to the parliament’s legislative plan for the year “when the conditions are ripe.” The NDRC said in a briefing later that month that it will speed up the process for the law.

Relevant departments carried out some preliminary research on the law, Yicai reported in January. BLOOMBERG

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