China’s top economic regulator announced on Thursday that the country will introduce a series of policy measures to support private investment and boost private enterprises. This move is aimed at bolstering corporate confidence and reviving economic recovery in the nation.
The announcement followed the issuance of a top-level document promoting the development of the private sector. The document outlines 31 measures, including facilitating private enterprises’ access to funding, reducing market entry barriers, and promoting fair competition.
Li Chunlin, deputy head of the National Development and Reform Commission (NDRC), stated that the commission will collaborate with relevant stakeholders to implement the newly announced guidance. Two additional documents will soon be released to promote private sector development and encourage private investment.
The first document will focus on key areas, enhancing mechanisms for providing factors of production and incentivizing the private sector to increase investments. These documents will be part of China’s effort to establish a comprehensive policy system (“1+N”) supporting private businesses, with “1” being the recently announced top-level guidance and “N” representing the detailed plan for various sectors.
Official data reveals that private firms have been instrumental in China’s economic growth, contributing over 60 percent of the gross domestic product, 80 percent of urban employment, and 90 percent of market entities.
The private sector continues to play a significant role in boosting growth and trade while advancing Chinese modernization and socialism. To fully implement the guidance, the NDRC plans to address policy measures hindering a unified national market and fair competition, as well as resolving issues related to market entry.
Among the proposed steps, the country will introduce an updated negative list for market access and establish regulations on fair competition review to create a favorable development environment for private enterprises.
The NDRC has also demonstrated its commitment to supporting private enterprises by holding three symposiums in July to address their concerns and promote sustainable development. The commission will continue facilitating communication with private businesses, regularly holding symposiums to listen to their thoughts, address specific concerns, and assess policy implementation effects objectively.
Vice-Minister of Industry and Information Technology, Xu Xiaolan, emphasized the significance of micro, small, and medium-sized enterprises (MSMEs) in driving innovation. The ministry is actively formulating policy measures to support the high-quality development of specialized and sophisticated SMEs.
The government aims to increase support for specialized and sophisticated SMEs, helping them access financing by encouraging more firms to go public. The policy also includes providing rewards and subsidies to reduce financing guarantee fees for micro and small businesses, further promoting their access to funding.
In conclusion, China’s commitment to supporting the private sector through policy measures and assistance aims to revitalize the economy, foster innovation, and enhance the overall business environment for private enterprises.