China vows private firms will receive ‘equal treatment’ in charm offensive to prop up struggling sector
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In a bid to entice struggling private businesses to invest more to heal the ailing economy, central authorities are vowing to do all they can to support such investments, according to a Wednesday meeting of China’s cabinet, chaired by Premier Li Keqiang.
And authorities once again reiterated a pledge to support the “healthy development” of the platform economy, while pledging to back private capital for start-up investments.
“More forceful and effective measures should be adopted to strengthen confidence and anchor expectations. Support will be given to projects with private investment in accordance with laws and regulations,” Li was quoted as saying by Xinhua.
“It is imperative to work unswervingly both to consolidate and develop the public sector and to encourage, support and guide the development of the non-public sector.”
“Private investors will receive equal treatment in bidding” for approved construction projects related to transport and water-resources management; all localities must protect the lawful rights and interests of private investors and earnestly honour their policy commitments; and financial institutions should support private investment via refinancing or loan renewals, the State Council said.
That offered more insight into what the Chinese government will do to restore the investment sentiment of entrepreneurs, as Beijing is stepping up its charm offensive to pull together the jittery private sector.
The party mouthpiece, People’s Daily, re-emphasised a message that “the private economy should only be stronger, not weakened”, in a commentary on Tuesday.