China vows to ‘draw the sword’ against malicious rumours targeting private businesses
- The All-China Federation of Industry and Commerce says it will take legal action against smears of private firms
- Government officials realise that getting the private sector onside is critical to China’s economic recovery this year
China’s leading Communist Party business chamber has pledged to “draw the sword” and take legal action against attacks on private firms, in the latest effort by Beijing to shore up business confidence and stabilise the economy.
The promise of support comes amid low private-sector morale after three years of coronavirus restrictions, as well as regulatory action against the property sector, platform companies and private tutoring.
On Monday, Xu Lejiang, party chief of the All-China Federation of Industry and Commerce – a party-controlled business chamber that primarily represents private firms – promised to challenge ideological hostility towards entrepreneurs.
“We must dare to draw the sword and speak up,” he told the state-owned Xinhua News Agency.
“We’ll cooperate with government agencies to take legal action against malicious rumours or smears concerning private firms, while trying to create clean public opinion.”
Government officials realise that getting the private sector onside is critical to China’s economic recovery, especially as the threat of a global recession looms this year.