China Economic Review: The need for government and enterprises to work together to promote the growth, optimization, and strength of the private economy | Economic development | Economy

Core viewpoint: Liang Yu, a commentator on China Economic Network, believes that to promote the development and growth of the private economy, on the one hand, it is necessary for policies to carefully care for it, directly address pain points and difficulties, create a more relaxed and competitive environment, and help private enterprises move forward lightly and boldly; On the other hand, private enterprises should also strive for self-improvement, practice hard, and consciously take the path of high-quality development.

The development of the private economy has ushered in a heavyweight document. The Opinions of the Central Committee of the Communist Party of China and the State Council on Promoting the Development and Growth of the Private Economy were released on the 19th. The Opinions pointed out that the private economy is a new force to promote Chinese path to modernization, an important foundation for high-quality development, and an important force to promote China's building into a socialist modernization power in an all-round way and achieve the second century goal.

"New force" is a new term that emphasizes the important position of the private economy. Against the backdrop of weak economic recovery and the urgent need to boost social confidence, the issuance of the Opinion can be described as a timely rain, further stabilizing social expectations, enhancing the sense of security and gain in the development of the private economy, and promoting the growth, optimization, and strength of the private economy.

The private economy plays an irreplaceable role in creating employment, promoting innovation, and increasing taxes. Since the 18th National Congress of the Communist Party of China, the number of private enterprises has more than doubled, and the proportion of private enterprises in the total number of enterprises has increased from nearly 80% to over 90%. However, in recent years, the impact of the epidemic combined with changes in the external environment has led to slow growth in domestic and international demand, weak expectations for enterprise development, and insufficient confidence. In the first half of the year, the growth rate of national fixed assets investment showed a downward trend, and private investment fell 0.2% year on year.

How can we boost corporate confidence? The stability, transparency, sustainability, and predictability of policies are extremely important. There is an example that can be supported. In 1992, Deng Xiaoping said during his "Southern Talk": "In the early stages of rural reform, Anhui faced the problem of 'foolish melon seeds'. Many people were uncomfortable at the time, claiming that he had earned one million and advocating for moving him. I said he couldn't move, but if he moved, people would say that policies had changed, and the gains were not worth the losses." This statement contained three layers of meaning: to protect entrepreneurs, maintain fair competition, and not change policies, with the aim of giving private entrepreneurs peace of mind. We all know the rest of the story. After 1992, the development of the private economy has made rapid progress.

In fact, in recent years, the state's attitude towards the private economy has been consistent. From the Central Economic Work Conference held in December last year to the National People's Congress and the Chinese People's Political Consultative Conference this year, a series of heavyweight meetings have also issued clear signals of adhering to the "two unwavering principles". Recently, departments such as the National Development and Reform Commission, the Ministry of Industry and Information Technology, and the Ministry of Commerce have frequently voiced their efforts to promote the development of the private economy. Continuously announcing policies is to stabilize social expectations and enhance entrepreneurial confidence.

The series of measures proposed in this Opinion are also very valuable, timely responding to the most concerned issues of enterprises, such as "protecting the property rights of private enterprises and the rights and interests of entrepreneurs in accordance with the law" responding to the concerns of "equal legal protection", "strengthening policy communication and expected guidance" responding to the concerns of "policy continuity and stability", and so on. It can be said that this provides more powerful policy guarantees for the development of the private economy in the new era.

However, to promote the development and growth of the private economy, on the one hand, it is necessary to carefully care for policies, directly address pain points and difficulties, create a more relaxed and competitive environment, and help private enterprises move forward with light equipment and bold development; On the other hand, private enterprises should also strive for self-improvement, practice hard, and consciously take the path of high-quality development.

Looking around, the international environment is complex and severe, and the foundation for sustained recovery and development of the domestic economy is still unstable. Private enterprises are facing some challenges in their development. At this time, it is particularly necessary for private enterprises to unleash their entrepreneurial spirit, be not afraid of hardship, dare to take risks, actively transform and develop, and create new economic growth points. Especially, capable and qualified private enterprises should strengthen independent innovation and play a greater role in promoting technological self-reliance and transformation of scientific and technological achievements.

The key to market pressure is also a good opportunity to squat and accumulate momentum. Looking ahead, the fundamental principles of China's stable and long-term economic growth have not changed, and high-quality development still possesses a series of significant advantages. It is expected that the government and enterprises will work together to open up a broader Xintiandi for the development of private economy.

Economic Daily - China Economic Network Comment and Theory Channel is open for submission. Original comments and theoretical articles can be sent to cepl # ce.cn. Please refer to the solicitation notice for comments on the Theory Channel of China Economic Daily and China Economic Net.

Related article: Questioning private enterprises to better stabilize expectations and boost confidence

"Internal and external synergy" promotes high-quality development of private economy