China vows to spur growth of private economy

Chinese authorities have issued a guideline on boosting the growth of the private economy, promising to improve its business environment, enhance policy support, and strengthen the legal guarantee for its development.

The document was released by the Central Committee of the Communist Party of China and the State Council.

The country will help grow, improve and strengthen the private economy so that it can play a bigger role in advancing national rejuvenation, the document said.

To provide an improved environment for the private economy, China will work to remove barriers in market access and fully implement policies and mechanisms for fair competition.

The country will protect intellectual property rights, the property rights of private firms, and the legitimate rights and interests of entrepreneurs as part of the legal guarantee for the growth of the private economy.

More policy support will be provided to facilitate financing for companies and meet labor demand, according to the guideline.

In promoting the high-quality development of the private economy, the country will encourage private companies to accelerate their digital transformation and invest more in research and development.

The guideline also pledged measures to promote entrepreneurship in the private economy, and measures to create a nurturing social environment for the private economy.

The private economy has become an intrinsic element of China’s economic system and a significant force in sustainable and healthy economic development, an official with the National Development and Reform Commission said when answering questions on the document.

From 2012 to 2021, the share of tax revenue from private enterprises increased from 48 percent to 59.6 percent, while the proportion of private enterprises increased from 79.4 percent to 93.3 percent from 2012 to 2022, the official said.

Meanwhile, 50.9 percent of foreign trades were conducted by private enterprises in 2022, more than other businesses since 2019.

The official noted that the private economy has become a new force to promote Chinese modernization and an indispensable foundation for high-quality development.

Still, some private enterprises have been facing difficulties over time. The system and mechanism to promote the development and growth of the private economy should be further fine-tuned to boost its confidence and vitality, said the official.

Source: Xinhua News Agency