China vows to protect businesses from arbitrary inspections in bid to boost weak economy

New directive is latest move to address companies’ complaints about government interference and fines targeting private enterprises

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China has rolled out stimulus measures since September to boost consumption, revive the property market, restore business confidence and address demographic challenges. Photo: Xinhua

Published: 9:14pm, 7 Jan 2025Updated: 9:26pm, 7 Jan 2025

China has vowed to double down on efforts to regulate law enforcement actions against private enterprises to help revive the weak economy.

Chinese vice-minister of justice Hu Weilie said on Tuesday that Beijing’s demand that local governments refrain from arbitrarily fining private companies was “one of the important measures” in a stimulus package aimed at addressing the country’s economic problems.

Hu made the comments at a press briefing held to highlight a document – issued on Friday by the State Council, China’s cabinet – regulating government inspections of private companies. He was among three officials from the Ministry of Justice, which drafted the document, to attend the event.

Private businesses, which serve as the backbone of job creation, investment and innovation in China, have voiced concerns that frequent administrative inspections by local governments interfere with their normal operations and enable rent-seeking.

The directive acknowledged problems including frequent and arbitrary inspections as well as “campaign-style inspections” and inspections “disguised under different names”.

It urged local governments to eliminate “profit-driven inspections” carried out to generate fines to address fiscal and local debt problems.