As China seeks to boost the confidence of private companies, a recent document issued by the Hainan provincial government has sparked a controversy about whether the private sector is receiving special treatment in the judicial system. The document, called Several Measures to Support the Development of the Private Economy, mentioned that private businesspeople involved in criminal cases should not be arrested, prosecuted, or sentenced to prison whenever possible. This controversy is worth reflecting on.
The concerns about the policy focus on two points. First, if it ends up getting changed in the future, the current policy may undermine the stability and authority of the rule of law. Second, if it grants private enterprises “extrajudicial privileges,” it is unfair. Regardless of whether these concerns are valid, they serve as a reminder to policymakers. Boosting the confidence of private enterprises ultimately relies on a stable and fair legal environment. A consistent and rigorous standard should be applied to whether or not someone gets arrested or prosecuted, with the law having the final say.
