China’s 31-point plan vows private firms, like state brethren, will be ‘bigger, better and stronger’
- Days after economic figures rankled the market, Beijing unveils a list of policy solutions and promises political backing for private firms – with concrete details to come soon
- Investors and analysts have been clamouring for leaders to follow through on promises and help bring businesses back from the brink of closure or bankruptcy
In perhaps its strongest message ever to China’s private sector, Beijing has offered up solid political backing while vowing to create a favourable environment to unleash entrepreneurship that leadership sees as critical in curbing downward risks in economic recovery.
The commitments were among those unveiled on Wednesday in a new 31-point action plan that aims to shore up the ailing private sector that underpins economic growth, jobs and technological innovation, and to invigorate the national economy.
For now, however, this new action plan is the most comprehensive one released since President Xi Jinping started his third presidential term in March, and it touches on a raft of widely concerning issues such as market entry, fair competition, financing support, payment defaults, intellectual property rights and legal protection.
Despite Beijing’s determination to improve China’s business environment and to solve on-the-ground difficulties, investors and analysts want to see quick, effective and thorough action to prevent private confidence from faltering while bringing struggling businesses back from the brink of closure or bankruptcy.