Opinion: Strengthening the Private Economy Requires Concerted Efforts

The development of the private economy is vital for the socio-economic landscape, necessitating policy coordination and oversight to ensure effective implementation [para. 1]. Recently, an official from the National Development and Reform Commission presented a report titled “State Council Report on Promoting the Development of the Private Economy” to the 10th session of the 14th National People’s Congress Standing Committee. This report identifies six focal areas and emphasizes removing bureaucratic barriers to successfully implement central policies that promote the private economy [para. 1].

Policymakers prioritize the private economy, showing unwavering support for private enterprises. The Report details substantial achievements, highlighting continued growth in scale, innovation, international competitiveness, and societal contributions. Notable examples include private capital in major projects like the Hangzhou-Shaoxing-Taizhou high-speed railway and nuclear power plants, demonstrating market access and investment reforms under competitive neutrality [para. 2].

However, ongoing challenges persist, particularly regarding market access, resource acquisition, and equal access to funding, talent, technology, and data. Issues with property rights protection and an inadequate legal and regulatory framework also hinder the private economy's growth [para. 3]. These systemic, conceptual, and policy factors create a complex landscape of uncoordinated policies that undermine confidence and expectations among entrepreneurs [para. 4].

The Report also highlights opportunities, pointing to improved macroeconomic policy consistency and central-local cooperation as evidence of progress [para. 5]. To enhance policy coordination, the Report suggests reviewing laws and policies for unequal treatment, assessing macro-policy orientations, and broadening private sector participation in governmental decision-making [para. 6]. It stresses the importance of maintaining confidence in private enterprises, illustrated by prompt government responses to incidents like the detention of a female entrepreneur and the tax audit concerns [para. 7].

Strengthening policy coordination requires addressing specific incidents and details. Decision-makers need to govern “incorrect statements” about the private economy, which have already decreased due to regulatory efforts, but public concerns still occasionally arise, necessitating stricter governance and accountability from online platforms [para. 8].

To advance the private economy, strengthening policy coordination and reinforcing legal protections is crucial. The Report advocates accelerating legislation to promote the private economy, with the Standing Committee of the National People’s Congress already including this in its annual plan [para. 9]. Swift enactment of such legislation would clarify responsibilities and rights, serving as a significant safeguard for the private economy’s development and enhancing policy coordination.

The private economy is deemed crucial for Chinese-style modernization and high-quality development. Major directives from the Central Committee of the Communist Party and the State Council aim to expand the private economy. While efforts to alleviate anxieties among private enterprises and entrepreneurs are reassuring, a coordinated effort among various departments and regions to promote economic development is more compelling and essential for sustainable growth [para. 10].