Beijing Legislates on Promotion of Private Economic Sector

The Beijing municipal government has set up the legal status of private and individual businesses as a part of the capital's economy by passing a regulation draft on promoting of private sector, which states that privately owned enterprises are important parts and economic force motivating development of the capital's economy.

Wang Jiping, director of the Beijing Municipal Administration for Industry and Commerce, made the remarks at a CPC session, June 21.

Private enterprises have been held back for their own characteristics as being launched on a small scale, poor management and low-quality operation, Wang said. But the major cause lies in innate old ideas, out-dated management system and poor legal environment. Therefore it is urgent to put out a local regulation to boost the private sector.

The regulation draft has been revised for 16 times and is different from past regulations focusing on enterprise administration and interests protection. It is aimed to create an external environment of fair competition in which various economic entities are treated equally.

The regulation draft standardizes demands on market access, stressing that private and individual enterprises enjoy the same treatment with other economic entities in market access, financing, taxation and fund raising by getting listed.

Private enterprises have been playing a bigger role in Beijing's economy. By yearend of 2000, Beijing's private enterprises numbered 104,000, individual industrial and commercial businesses 242,000, with a total of 1.7bn yuan of revenue contributed. As things now stand in the capital, there is a boom of private enterprises of magnitude, being launched on a big scale, especially those credited with good performance and brand name products having been launched in the hi-tech field in the capital.

By PD Online Staff Li Heng

People's Daily Online ---