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China’s New Policies to Promote Individual Businesses

The State Council has recently released the Regulations on Promoting the Development of Self-employed Businesses (the "Regulations"), with effect from November 1, 2022.

The Regulations mainly involve: (1) clarifying the position and role of self-employed businesses in the socialist market economy and the basic principles for promoting their development; (2) establishing a sound working mechanism for promoting the development of self-employed businesses; (3) specifying the duties of and the requirements for governments and relevant departments in promoting the development of self-employed businesses; and (4) reinforcing the constraints for governments and relevant departments to perform their duties and strengthening the protection of the legitimate rights and interests of self-employed businesses. The Regulations stipulate that no entity or individual shall charge any fee from self-employed businesses in violation of laws, regulations, or relevant state provisions, or do so in disguised form, expand the range of charges or raise the rates without permission, raise or apportion any funds from self-employed businesses, or forcibly require them to provide sponsorship or accept paid services. Where any staff member of the government and its relevant departments fails to perform or incorrectly perform his or her duties in the course of promoting the development of self-employed businesses, thereby damaging their legitimate rights and interests, and causing serious consequences, he or she shall be punished in accordance with laws and regulations.


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