Xi: Fundamentals of long-term growth will not change

Better business environment expected for Chinese, foreign enterprises as opening-up expands

The fundamentals of China’s longterm sound economic growth have not changed and will not change, President Xi Jinping said on July 15 in a reply letter to global CEOs.

China will keep deepening reform and expanding opening-up, and provide a better business environment for the investment and development of Chinese and foreign enterprises, he said.

Moreover, the country will roll out new measures to catalyze entrepreneurship and innovation with special focus on employment of and business start-up by college graduates and other key populations, the State Council’s executive meeting chaired by Premier Li Keqiang decided on July 15.

The nationwide initiative spurring entrepreneurship and innovation is a crucial underpinning for sustaining and expanding employment, and nurturing new drivers of growth. Premier Li highlighted the need to further take forward the entrepreneurship and innovation initiative, and catalyze its role in promoting employment, especially for college graduates.

The meeting underlined the imperative to make all-round efforts to maintain stability on the six fronts and security in the six areas.

Given the shocks caused by COVID-19 and shifting environment for development, the meeting urged keeping to the strategy of innovationdriven development, and spurring society-wide entrepreneurial activities and innovation, to unleash market vitality and people’s creativity.

New drivers of growth will be fully harnessed to support jobs and market entities, with a particular focus on the employment of college graduates, rural migrant workers who have returned to their hometowns and other key populations.

“Stimulating entrepreneurship and innovation is highly important for providing employment for key groups of people and increasing their income. Competent departments should work out greater support for the employment of college graduates and rural migrant workers,” Li said.

A series of concrete measures were adopted at the meeting. Support for entrepreneurs and innovators will be scaled up. Special funds will be earmarked from central budgetary investment for the development of the entrepreneurship and innovation demonstration centers.

Idle factory buildings and underused land will be brought into full play as part of greater support for key entrepreneurial and innovation projects.

Government-invested incubators will provide a portion of their venues free of charge to college graduates and rural migrant workers.

One-off subsidies may be granted to first-time entrepreneurs returning or moving to the countryside, who have kept their business startups in regular operation no less than a year.

Demonstration programs for boosting employment by entrepreneurial activities will be carried out. Enterprises, entrepreneurship and innovation demonstration centers, and online platforms will be encouraged to jointly provide training on entrepreneurial skills in nursing, elderly care, domestic services, tourism and e-commerce to help shape the expectation of job-seekers and broaden their prospects for employment.

The entrepreneurship and innovation demonstration centers will be encouraged to build platforms for integrated cross-regional development involving companies of different sizes. And platforms providing specialized services will be built for the commercialization of scientific and technological research outcomes.

Financial institutions will be encouraged to provide insurance services for the financial leasing of equipment and entrepreneurial activities.

Restrictions on sectors where insurance funds may be used for financial equity investment will be lifted, and the quota transfer of equity investment and venture capital investment will be piloted in regional equity markets.