China’s Xi Jinping, Liu He move to reassure private sector as Beijing’s Big Tech crackdown rattles entrepreneurs
- President Xi Jinping and his top economic adviser, Vice-Premier Liu He, have sent strong messages of support to the private sector
- Comments come as Beijing tightens oversight on industries ranging from private tutoring and Big Tech to celebrity culture
Beijing has stepped up efforts to reassure private businesses they have the unswerving backing of China’s top leadership, despite slugging the sector with a regulatory crackdown that has unnerved many entrepreneurs.
On Monday, both Chinese President Xi Jinping and his top economic adviser, Vice-Premier Liu He, sent strong messages of support to the private sector, saying its role in the nation’s economic development had not been diminished.
Liu said private firms must be offered “vigorous” support so they can play a more significant part in growing China’s economy, creating jobs and deepening technological innovation.
There are no changes in the principles and policies for supporting the development of the private economy
“There are no changes in the principles and policies for supporting the development of the private economy; they have not changed now and will not change in the future,” Liu said in a video speech to a digital economy expo in Hebei province on Monday.
“The private economy has contributed more than 50 per cent of total tax revenue, more than 60 per cent of gross domestic product, more than 70 per cent of China’s technological innovation, more than 80 per cent of urban employment, and makes up more than 90 per cent of market entities.”
Therefore, it is critical the central government continues to nurture the sector, while managing risks in areas such as property and intellectual property rights, Liu said.
The Vice-Premier called on authorities to create a favourable environment for private firms and entrepreneurship in the digital economy.