China's top economic regulator and top court have reaffirmed their commitment to protecting the legitimate rights and interests of private businesses, highlighted by a landmark case in which a micro-blogger was penalized for damaging a company's reputation online.

The National Development and Reform Commission and the Supreme People's Court made the pledge on May 20, a year after the implementation of the Private Sector Promotion Law, China's first comprehensive legislation dedicated to promoting private sector development.

The law, which took effect on May 20, 2025, is widely regarded as a milestone in fostering the sustainable, high-quality growth of the private economy and strengthening entrepreneurs' confidence.

The two authorities stressed the need for strict enforcement of the law, calling for comprehensive protection of private enterprises' lawful rights and interests and innovative measures to provide businesses with accessible, efficient and low-cost legal services.

Among the cases highlighted recently was a dispute involving a new energy vehicle technology company and a well-known automotive influencer on social media platform Sina Weibo. The company alleged that the influencer had published more than 180 false and defamatory posts over the course of a year, including claims that the company's motors were substandard.

After an investigation, the Jiading District People's Court in Shanghai found that the influencer's posts insulted the company's executives and investors and damaged its business reputation by defaming its products and services.

Given the defendant's influence within the industry and the large number of posts involved, the court ruled in favor of the company, ordering the influencer to delete the posts, issue a public apology and pay over 400,000 yuan ($58,812) in compensation.

The Supreme People's Court cited the ruling as a clear example of the judiciary's commitment to protecting private enterprises' legitimate rights and interests.

"The influencer must be held accountable for damaging the automotive technology company's reputation," the court said. "This verdict by the lower court strongly supports the private sector and helps improve the online environment."

The commission and the top court also released four other representative cases involving private enterprises, emphasizing that judicial rulings should not be made in isolation. They called for tailored solutions based on the specific circumstances of businesses and industry trends, while providing more efficient and cost-effective legal services to help companies overcome challenges and achieve healthy development.

In one case, a court in Tongxiang, Zhejiang province, worked with a local trade promotion association to mediate a dispute between an Egyptian businessman and an import-export company within three days, saving the foreign party more than 100,000 yuan in litigation costs.

The Private Sector Promotion Law contains 78 articles across nine chapters covering fair competition, investment and financing promotion, technological innovation, regulatory guidance, service support, rights protection and legal liabilities.

Since the law took effect, judicial authorities have stepped up enforcement efforts, strengthening protections for innovators and addressing unlawful government actions affecting businesses.

The Supreme People's Procuratorate, the country's top prosecuting authority, also pledged to intensify efforts against business-related crimes, including internal corruption, contract fraud, embezzlement and bid rigging, in a bid to strengthen legal protections for private enterprises.

One notable case involved an electrical appliance company in Zhuhai, Guangdong province. Between 2016 and 2023, 48 employees, including an operations director and a senior supply chain manager, allegedly formed criminal groups to embezzle and steal products through false claims and theft. The stolen goods, valued at more than 100 million yuan, were sold to 21 buyers.

Prosecutors moved quickly to minimize the company's losses by urging police to seize and freeze assets linked to the suspects. By July 2023, public prosecutions were initiated, resulting in prison sentences for 35 defendants ranging from eight years to eight months, along with fines of between 5,000 and 500,000 yuan.

Following appeals, the Zhuhai Intermediate People's Court upheld the eight-year sentence imposed on the operations director and ordered the repayment of 5.97 million yuan. Judgments involving the other appellants have also taken legal effect.