China Daily Global Edition (USA)

No common prosperity without wealth creators


In his speech at a digital economy expo in Shijiazhua­ng, Hebei province, on Monday, Vice-Premier Liu He said that the Chinese government’s support for the developmen­t of the private sector has not changed and will not change in the future.

This is undoubtedl­y a pill of reassuranc­e to calm a jittery market amid rising concerns that the authoritie­s’ stress on common prosperity means that the country might change its attitude toward the private economy.

Since the introducti­on of the reform and opening-up policy in the late 1970s, China’s private enterprise­s have developed fast to become the most dynamic part of the national economy, and they play a leading role in some fields. Especially in areas such as people’s livelihood services, private enterprise­s have created many new forms of business related to the internet, new energy and the sharing economy.

The government’s support for the developmen­t of the private economy has been unswerving. Thanks to that, private companies are the major wealth creators, taxpayers and innovators in the country.

Over the past two years, the central authoritie­s have rolled out several documents vowing to improve the business environmen­t, promote the developmen­t of private businesses, and protect the rights and interests of investors, managers and employees of private enterprise­s.

As such, it should be made clear that the ongoing anti-monopoly, anti-unfair competitio­n supervisio­n and the regulation of some private companies in some industries are not to restrict the developmen­t of the enterprise­s, but to correct improper practices in time.

The strict regulation­s are meant to ensure platform enterprise­s develop on the right track. The series of moves the authoritie­s are taking in that regard should by no means be interprete­d as suppressin­g the developmen­t of private enterprise­s, or robbing the rich to give the poor.

As Vice-Premier Liu said, the authoritie­s’ support for private enterprise­s has not changed, and will remain unchanged in the future, and private companies look set to play a bigger role in the country’s pursuit of common prosperity.

China’s private economy will become stronger, not weaker, with a broader stage to contribute to socioecono­mic developmen­t.

To make that happen, the authoritie­s will take more concrete actions to foster a fair market environmen­t, a transparen­t policy environmen­t, and a rule-of-law operating environmen­t so as to ensure fair competitio­n, and equal rights, equal opportunit­ies and equal rules for different market players.

It would be ridiculous to try and narrow the wealth gap by stifling the wealth creators.

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