Top court strengthens legal protection for private firms

China's top court released four landmark cases on Wednesday involving private enterprises, emphasizing the need to promptly correct miscarriages in adjudication and continue strengthening legal support for the private sector.

The Supreme People's Court reaffirmed the importance of protecting the legitimate rights and interests of private entrepreneurs, urging judges across the country to improve the quality of relevant case handling to support the sustained, healthy and high-quality development of the private sector.

The top court said that the release of the cases sends a strong signal of the rule of law, indicating that errors in judgments should be corrected in a timely manner in accordance with the law, so as to allow private enterprises and entrepreneurs to focus on innovation, operate with peace of mind and develop businesses with confidence.

For example, in cases where economic issues arise from contracts and there is no evidence proving that a private entrepreneur had the intent of illegal possession or misappropriation of funds, courts should not find them guilty. Instead, such cases should be resolved as economic disputes based on the evidence.

In short, courts should prevent and correct the use of criminal measures to intervene in economic disputes, the top court said.

It added that the release of these cases also serves as a legal guide for courts nationwide, helping to unify the application of the law and accurately clarify legal boundaries in handling similar cases, thereby fostering a sound business environment governed by law.