China pledged on Wednesday to support the private sector to become "larger, better, and stronger" through a series of measures aimed at assisting private companies and enhancing the sluggish recovery following the pandemic. The slowdown in growth in the world's second-largest economy creates an urgent need to revive the private sector, a key driver of growth that has been hurt by COVID-19 restrictions and broad regulatory crackdowns targeting various sectors from technology to real estate.
According to the Xinhua News Agency, citing guidelines released by the Communist Party and the State Council, China will strive to provide a favorable business environment for first-class markets. Xinhua noted that "the private sector is a new force to promote Chinese-style modernization, an important foundation for high-quality development, and a key strength to enhance the construction of a modern socialist power in China."
Measures include protecting the property rights of private companies and entrepreneurs, as well as steps to ensure fair market competition by removing barriers to market entry. According to Xinhua, the guidelines will include support for eligible companies for stock market listings as well as refinancing.
The guidelines also indicate that authorities will promptly refute "false statements and practices" that could harm private enterprises and will respond to the concerns of these businesses in a timely manner. Growth in the Chinese economy slowed in the second quarter amid weak domestic and external demand, increasing pressure on policymakers to provide more stimulus to support activity.
