Opinion | China must abandon ideological bias against ownership to ensure the success of new action plan supporting the country’s private sector

Name: Premier Li Qiang plays up China’s economic prospects at World Economic Forum’s ‘Summer Davos’
Uploaded: 2023-07-24T23:00:15.000Z
Duration: 1 min 49 s
Description: Premier Li Qiang plays up China’s economic prospects at World Economic Forum’s ‘Summer Davos’

China’s official policies recognise the private sector’s role in national development, yet there is still some bias against this part of the economy

Under the government’s latest action plan, the state would set up a potentially problematic ‘traffic light’ system for the private sector

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Beijing’s new 31-point action plan recognises the private sector as an important foundation for the country’s high-quality development and its role in promoting modernisation of industries. Photo: Shutterstock

Zhou Xin

Published: 7:00am, 25 Jul 2023

Chinese authorities have published its latest major policy document to shore up confidence in the country’s private sector, a move that comes at a time when the nation’s economic growth is losing steam.

The government’s new 31-point action plan – dated July 14, but released on July 20 – recognises the private sector as an important foundation for the country’s high-quality development and its role in promoting modernisation of industries.

The authorities, which include China’s ruling Communist Party and the State Council, pledged to build the nation’s private economy “bigger, better and stronger”, akin to the massive support given to state-owned enterprises (SOEs).

Beijing’s previous policy guidelines that helped promote development in the nation’s private sector included a 36-point action plan in 2010 and a 36-point initiative in 2005 to help the “non-public” economy.

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Premier Li Qiang plays up China’s economic prospects at World Economic Forum’s ‘Summer Davos’

A number of Chinese business titans, including the heads of Big Tech companies and property tycoons, whose businesses bore the brunt of Beijing’s regulatory crackdown in recent years, were quick to express their enthusiasm and heap praise on the government’s latest policy initiative.