China Considers Ruling on Protection of Private Property

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Last updated at: (Beijing Time) Wednesday, December 04, 2002

China Considers Ruling on Protection of Private Property

Officials said that the NPC Standing Committee has been under discussions over a law ruling on protection of people's property rights to make sure their personal rights and private property are solidly guaranteed.

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A mobilization meeting to bring about a boon of non-government scientific and technological endeavor in China was called yesterday. Addressing the meeting, Cheng Siwei, famous economist and vice chairman of the Standing Committee of the National People's Congress (NPC) declared that China's civilian-run enterprises are at a most optimal time of development as their weighty role having been redefined by the 16th National Congress of the Communist Party of China (CPC) held last month. He told that the NPC Standing Committee has been under discussions over a law ruling on protection of people's property rights to make sure their personal rights and private property are solidly guaranteed.

The guarantees must be in four aspects, said Cheng demanding resolute efforts be made guaranteeing people's rights to their private property. One is market access, demanding all enterprises including those civilian-run and foreign-funded be run on an equal footing with universal "national treatment" provided in all areas and businesses as under a market economy being developed in China.

Two is funding conveniences to be provided. A survey conducted among civilian-run enterprises under the China Democratic National Construction Association shows that non-government enterprises had been provided with a 47.3 percent loan amount of bank loans issued. Though great advances have been made in China's cause pursuing risk investment in recent years yet not much of these have been used in the way they should have been. Instead of being used as a supporting force most of these risk funds had been used for amassing money by taking advantage of civilian enterprises going to get listed. Thus finding funds becomes a major problem hindering the development of civilian-run enterprises. Risk investments should be used to back up civilian-run enterprises other than seeking the biggest profit, Cheng said.

Three, problems as collection of irrational fees should be solved. As shown by tax collection on joint cooperative operations, income taxes on both individuals and enterprises have been collected. Seen from a legal view, this is irrational and should be solved. Proper regulations should be promulgated and no collection of irrational fees must be allowed. Worth notice is President Jiang Xemin's report he made at the CPC 16th National Congress in which he said: "We should respect and protect all social labor in the interest of people". "Various kinds of investors in China and abroad should be respected with their creative activities and undertakings launched", and "all lawful income from their labor and legal non-labor earnings should all be protected". "The NPC National Standing Committee is now under discussion over protection of people's rights in connection with their rights to private property" Cheng said.

Cheng pointed out that when seeing things from the stand of civilian-run enterprises there is also the problem uplifting the quality to cope with new challenges facing them. First of all, managers of civilian-run enterprises should by themselves improve their own calibre and the quality of the whole contingence of civilian-run enterprises. Some people say that civilian-run enterprises are facing a time of "launching undertakings the second time" and it would go nowhere by merely relying on past experience. When experiences are accumulated management must be carried out on a scientific basis for a further growth of their undertakings in contributing to all-round development of all enterprise operations in China and an overall development of the Chinese economy.

Second, civilian-run enterprises should be launched on an increasingly large scale by way of a combined development and a merger of their operations. No civilian-run enterprises should develop and go it along on their own, they must advance hand by hand, wave upon wave towards a grand goal of boosting the national economy. Even if equipped with a start-up fund of 10 million USD or having an annual 20 percent growth rate claimed, they will still be unable to take a place among the world 500 strong. Being "merely contented with a place heading a small force of chicks" will help our civilian-run enterprises get nowhere. Unite and join forces will lead us on the broad way ahead.

Third, civilian-run enterprises should build up their basic competitive edge and become strong. Trying merely to have a large operation is not enough and most important is to become powerful and be run with a mighty force for our civilian-run enterprises. Vital to an enterprise's edge is its "root", from striking deep "root" there can be a full growth of full foliage and exuberance and the possibility to "go out" to make advances abroad and achieve the goal of a transnational or transnationals developing on a global scale.

By People's Daily Online

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