China’s Private Sector Set for Boost as Local Governments Step Up Support

Several Chinese cities are planning to introduce local legislation to promote the private economy, answering the central government’s call for equal treatment of the non-state sector as part of efforts to revive economic growth.

The southern manufacturing hub of Guangzhou is proposing to grant equal market access to private businesses and forbid local governments from setting illegal restrictions that prevent them from bidding for contracts to use public resources, according to a draft regulation released in mid-March. Public resources refer to assets owned by the state such as land, buildings, public utilities, and licenses for services such as vehicle rental and procurement of medical products.