Restoring business confidence

China is taking new steps to promote a more dynamic private sector with a draft law encouraging private sector participation. The aim is to restore business confidence lost due to the economic downturn and accelerate the creation of new development models across various sectors.

According to the National Development and Reform Commission (NDRC) and the Ministry of Justice of China, the law promoting the private economy will mark a “systematic approach” to addressing the industry’s problems and challenges, while helping to create a stable, fair, transparent, and predictable business environment.

Published on the NDRC website for public comment until November 8th, the draft, comprising 77 articles, stipulates measures to promote healthy market competition; strengthen the investment and financial environment; encourage private enterprises to participate in science and technology innovation projects; and protect their economic rights and interests.

The draft law is expected not only to boost the private sector but also to contribute to the overall economic stability and growth of the country. Currently, the private sector accounts for up to 80% of urban jobs in China.

In recent years, the Chinese government has given high priority to the private sector. Besides tax breaks and exemptions, the country has facilitated the increasing participation of private enterprises in investing in key national projects. The private sector has access to large-scale projects online, is protected by law regarding private property rights, and has access to preferential interest rate financing.

Besides policy pressures, China's private sector has also been severely impacted by slowing economic growth and geopolitical tensions. Observers believe that developing this potentially lucrative sector to a new level demonstrates the government's commitment to addressing specific issues and responding to the concerns of private enterprises, while creating a better business environment with various policies and support measures.

THANH HANG

Source: https://www.sggp.org.vn/khoi-phuc-niem-tin-kinh-doanh-post763396.html