President reaffirms support for private sector
President Xi Jinping reaffirmed on March 6 the nation’s unwavering support for the private sector, pledging steps to bolster the confidence of businesses and entrepreneurs, reduce their burdens and promote their healthy and high-quality growth.
While taking part in a joint group meeting with national political advisers, Xi, who is also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, called for steps to improve the business environment for the private sector, remove institutional barriers to level the playing field for private businesses and protect their property rights and interests.
The political advisers, who were attending the first session of the 14th National Committee of the Chinese
People’s Political Consultative Conference, are from the China National Democratic Construction Association, one of China’s eight non-CPC political parties, and the All-China Federation of Industry and Commerce, an organization with over 5 million corporate members.
It is important to maintain composure and strategic resolve, pursue progress while ensuring stability, work proactively and in unity, and have the courage to carry on the fight in the face of profound and complex changes in the domestic and international landscapes, Xi said.
He highlighted unity as the source of the nation’s strength, saying that China has been able to overcome various risks and challenges thanks to all its people striving in unity with a fighting spirit.
The private sector is a key strength for the CPC to rely on in its long-term governance, and uniting the nation to attain its two centenary goals, Xi said.
He stressed the need to guarantee a level playing field for private businesses and State-owned enterprises through laws and institutional arrangements, encourage the private sector and its enterprises to grow larger and further lift market expectations and confidence.
More effective measures must be adopted to support the growth of smaller enterprises and self-employed individuals, while platform companies will be encouraged to play a greater role in creating jobs, boosting consumption and in international competition, he said.
Xi encouraged private businesses to transform their pattern of growth, adjust their industrial structure, focus on their main business portfolios and follow a path of high-quality development.
Capable businesses should enhance their independent innovation and contribute more to the nation’s science and technology self-reliance as well as the commercial application of research outcomes, he said.
To spur private investment, the government should attract the participation of more private investors to the construction of major projects and projects that are part of key industry and supply chains, he said.
Xi reiterated the need to ensure the healthy growth of capital in various forms, effectively prevent and defuse systemic financial risks and create a climate that ensures fair competition for businesses of various ownership types.
He explained that both SOEs and the private sector are key forces to promote common prosperity, and they must share social responsibility in this regard.
It is important for private business leaders to have a greater sense of responsibility and mission in promoting common prosperity, he said.
Xi urged private businesses to work toward harmonious labor relations and ensure that development outcomes benefit all employees.
He also called for private entrepreneurs to ensure their operations are lawful and in compliance with regulations, carry forward their entrepreneurship spirit and take an active part in public charity.
The number of private businesses in China grew from 10.86 million in 2012 to 47 million last year, with such businesses contributing to over half of the nation’s tax revenue, over 60 percent of GDP and more than 80 percent of urban employment, according to the All-China Federation of Industry and Commerce.