Chinese regions roll out effective policies to promote high-quality development of private sector

Since the beginning of the year, multiple regions in China have introduced effective policies and measures to support the high-quality development of the private sector.

Chinese regions have continued to foster an enabling environment for the development of the private economy, including creating a rule of law environment that is fair and just, and further optimizing the business environment to stimulate the healthy development of private enterprises.

Staff members work at a workshop in an industry park in Qingpu District of Shanghai, east China, May 17, 2022. (Xinhua/Zhao Yihe)

These policies and measures emphasize support in terms of financing, talent, technology, land provision, environmental protection and other factors for private companies to better ensure the private sector’s development. Many places in China have vowed to make the financial sector better serve the private economy.

While formulating policies, various regions have focused on boosting confidence in the private sector and creating a favorable atmosphere of respecting, encouraging, supporting and protecting private entrepreneurs.

Many regions have outlined that more funds would be allocated to outstanding companies, including innovative enterprises, specialized and sophisticated small and medium enterprises (SMEs), “lighthouse factories,” and top 500 enterprises, and vowed financial support for the transformation and listing of private companies to improve their innovation capacity and competitiveness.

South China’s Hainan Province issued measures to support the development of the private sector in March. Hainan will offer a one-time award of 5 million yuan ($727,653) each to private companies in the province that are recognized as China’s top 500 private firms for the first time, and provide 5 million yuan each as an incentive to listed private companies.

According to measures to boost the high-quality development of the private sector issued by the development and reform commission of Shenyang, capital of northeast China’s Liaoning Province, in March, the city will award companies recognized as global lighthouse factories with 10 million yuan each.

Some Chinese regions have rolled out measures to channel financial support to private companies that accelerate their digital transformation and green transition.

Zhengzhou, capital city of central China’s Henan Province, released a guideline on supporting the high-quality development of the private sector in late March, vowing to grant a maximum of 10 million yuan each as a subsidy to new intelligent manufacturing projects and renovation projects for intelligent manufacturing, while offering subsidies to support enterprises and data centers in speeding up green transformation.

Some regions, including east China’s Anhui Province and northwest China’s Shaanxi Province, have stipulated that opinions and suggestions from entrepreneurs should be taken into account when formulating policies that relate to enterprises to encourage private companies’ participation in the formulation of such policies, so as to create a stable, transparent, and predictable policy environment.

Some Chinese regions also have rolled out measures to help female private entrepreneurs resolve the pressing difficulties and problems that concern them most.

The Shaanxi provincial women’s federation, for instance, released 11 measures to serve private enterprises and the private economy, including training 200 outstanding female private entrepreneurs, and striving to ensure that no less than 1,000 female entrepreneurs and self-employed individuals are covered by policy support.

This year’s government work report says China should, in accordance with the law, protect the property rights of private enterprises and the rights and interests of entrepreneurs, and refine related policies.

The country should encourage and support the private sector and private businesses in growing and expanding and support micro, small and medium enterprises and self-employed individuals in business development.

China should cultivate a cordial and clean relationship between government and business and create an environment in which enterprises under all forms of ownership can compete and grow on a level playing field. Effective measures and policies should be rolled out to stabilize market expectations and boost market confidence.

To better support the private sector and private businesses in growing and expanding, and promote the high-quality development of the private economy, the Message Board for Leaders, a section on the People’s Daily Online website, opened the floor to the public online for their opinions and suggestions.