Chaoyang court-federation team boosts private sector support

A Beijing team composed of industry and commerce officials and judicial personnel has been playing a key role in resolving disputes involving private enterprises and promoting the high-quality development of the private economy.

The team, jointly established in 2023 by the Chaoyang District Federation of Industry and Commerce and the Chaoyang District People's Court, serves as a collaborative mechanism to address concerns from private companies and support their healthy growth.

The federation is mainly responsible for gathering information on operational problems and business needs from private companies, while the court provides legal services and guidance in relevant case handling, Zhang Hongyuan, vice-chairman of the federation, told a news conference on Tuesday.

The team holds annual meetings and maintains regular information exchanges with enterprises, Zhang said, adding that it also takes prompt action to help resolve major or urgent issues in the private sector.

In addition, the team invites private firms to seminars to hear about their business difficulties, allowing the court to provide more targeted legal support, he said.

As of now, Chaoyang is home to more than 300,000 private enterprises, accounting for 90 percent of all market entities in the district—the highest total among all districts in Beijing. "The private economy has become a vital force driving the district's economic and social development," said Li Zenghui, chief judge of the court's Second Civil Division.

He cited data showing that from 2023 to 2025, the court concluded 2,000 disputes involving shareholder capital contributions in private companies, mainly covering inadequate capital contributions, illegal capital reductions and capital withdrawals.

"These cases reflect a number of recurring risks in shareholder capital contributions by private enterprises," said Wang Jinglu, deputy chief judge of the division. "For example, there is a lack of internal oversight over capital contributions, improper shareholder practices and blind inflation of registered capital."

She said shareholders should strengthen their awareness of making capital contributions in a standardized manner and fulfill their obligations in accordance with the law. She also called on private companies to improve internal management and take a more proactive role in overseeing shareholders' capital contributions.

"Creditors, for their part, should enhance their ability to protect their rights and guard against transaction risks," she added.

On Tuesday, the federation and the court also jointly issued a report on regulating shareholder capital contributions, along with details of eight landmark cases.

Zhang highlighted the report, saying the disclosure of such cases serves both as judicial reference and important guidance for the development of the private sector and for improving corporate practices.

Xu Dong, vice-president of the court, underscored the role of the team, noting that it will continue joint efforts to study emerging issues involving private enterprises and help foster a sound rule-of-law environment for the private sector.