China courting private sector, foreign companies in bid to boost growth, policy experts say

Name: China's 'two sessions': Premier Li Keqiang emphasises achievements, economy in final work report
Uploaded: 2023-04-06T09:01:26.000Z
Duration: 2 min 52 s
Description: China's 'two sessions': Premier Li Keqiang emphasises achievements, economy in final work report

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Employees assemble speakers at a factory in Fuyang in China’s eastern Anhui province on March 31, 2023. Photo: AFP

Chad Brayin London

Published: 5:01pm, 6 Apr 2023

China’s government is making more friendly overtures to the nation’s private sector and foreign companies as it seeks to jump-start the world’s second biggest economy after years of restrictive measures to control the spread of Covid-19, according to an independent panel of China policy and economic experts.

One reason driving efforts by the government to court private-sector investment is the need to create jobs, including roles for 12 million fresh graduates, according to Yu Jie, a senior research fellow on China at Chatham House in London. Private-sector companies account for about 60 per cent of total employment in China, she said.

“If the government wants to have the economy back on track, you have to be friends with the private entrepreneurs,” Yu said during a panel discussion on China’s economic recovery sponsored by the think tank.

Beijing has set a growth target of around 5 per cent this year. China’s economy grew by 3 per cent last year, its second lowest growth rate since 1976.

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China's 'two sessions': Premier Li Keqiang emphasises achievements, economy in final work report

The nation’s economy showed a mild, but mixed recovery to begin the year, with retail sales increasing by a better-than-expected 3.5 per cent and industrial production increasing by 2.4 per cent in January and February.