What’s on the wish list for China’s private sector ahead of the ‘two sessions’?
As private businesses grapple with cash flow challenges, entrepreneurs say they want the settling of outstanding debts to be made a priority
They were among 38 suggestions put forward by the Beijing Dacheng Enterprise Research Institute, an independent research firm, as private entrepreneurs look to the government to protect their rights and solve issues affecting their operations, including overly rigid law enforcement, financing difficulties and hidden market access barriers.
“[We suggest] establishing a closed-loop mechanism for debt collection and setting up a unified national platform for monitoring and expediting debt settlement,” the institute said in a report issued on February 25.
It called on authorities to allocate dedicated funds from government bonds to inject liquidity into the debt chain, with clear rules governing the use of the funds.
“Upon receiving the starting funds, enterprises must prioritise settling outstanding debts with both upstream and downstream parties, thereby gradually clarifying creditor-debtor relationships through improved cash flow,” the report said.