BEIJING, April 30 (Xinhua) -- China's national lawmakers on Wednesday voted to adopt the country's first fundamental law dedicated to promoting the private sector, underscoring support for a key part of the world's second-largest economy.After over a year of legislative process, the private sector promotion law, passed at a session of the Standing Committee of the National People's Congress, will take effect on May 20, 2025.The law stipulates that the promotion of the sustainable, healthy and high-quality development of the private economy is a significant and long-term policy of China.From ensuring fair market access and financing support to enhancing services and protection of original innovation, the 78-article law cements efforts to encourage, support and guide the growth of the private sector.The law will provide a clearer and more solid legal guarantee for the private sector, said Li Shuguang, a professor at China University of Political Science and Law.This marks China's latest step in strengthening the sector -- recognized by the law as a key component of the socialist market economy -- amid efforts to tackle economic headwinds both at home and abroad.Officials and analysts view the formation and adoption of the law as "highly timely and absolutely essential," given the private sector's significant role in the economy.Boosting the private sector should feature prominently on the country's economic policy agenda: Whether it is to stimulate domestic demand, expand the domestic market, or boost production and improve the quality of supply, private businesses will be a key participant and contributor, according to Anbound, an independent think tank in China.Private enterprises have long been a key driving force behind China's economic growth, contributing more than 60 percent of GDP and 80 percent of urban employment. By the end of March 2025, the country's more-than-57-million registered private enterprises made up over 92 percent of all businesses in China.From electric vehicle maker BYD to artificial intelligence innovator DeepSeek and robotics pioneer Unitree Robotics, private enterprises have also become key players in China's push for innovation-driven growth.Yet, industry insiders note that challenges remain -- domestically, private businesses may face financing constraints and invisible market access barriers in some sectors; while abroad, they must navigate increasing impact from external shocks.The law will transform policy support into legal guarantees, giving entrepreneurs greater reassurance and motivation to keep moving forward, said Qi Xiangdong, chairman of cybersecurity firm Qi-Anxin and vice chairman of the All-China Federation of Industry and Commerce."The rule of law is the best business environment," Qi said.In February, the country held a high-level symposium on private enterprises, which was widely viewed as a strong signal to boost the confidence and growth of the private sector.A month later, at the "two sessions," the country reiterated support for private enterprises, vowing to take effective moves to stimulate the vitality of all market entities.To support the private sector, China has established a special bureau under the National Development and Reform Commission (NDRC) dedicated to serving the sector's development. Multiple provincial-level regions, including Guangdong, Shanxi, Qinghai and Zhejiang, have all set up such bureaus.Efforts to level the playing field are also underway. Last week, the NDRC unveiled the new version of the market access negative list, which specifies fields that are off-limits to both domestic and overseas business entities, reducing the number of items on the list from 117 to 106.Nan Yi, chairman of Wontai Group, said the law will support private firms' entry into sectors such as infrastructure and energy, and provide a strong guarantee for their continuous investment in research and development."The enactment of this law will inject strong impetus into the sound development of the private economy," Nan said.