News 1+1: How to boost confidence in private enterprises? Expert Interpretation → Science | Economy | News

On July 19th, 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. Both the top-level design represented by the Central Committee of the Communist Party of China and the State Council, as well as the importance and topicality of the private economy itself, are sufficient to demonstrate its heavyweight. What are the noteworthy contents in the document to promote the growth, optimization, and strength of the private economy, boost the expected confidence of the private economy, and further stimulate the development vitality of the private economy? What concerns have you responded to? News 1+1 invites Xu Hongcai, Deputy Director of the Economic Policy Committee of the China Policy Science Research Association, tonight to jointly pay attention to: How to boost confidence in private enterprises?

Releasing heavyweight documents related to the private economy

On July 19th, 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" was released, which attracted widespread social attention. What are the details and perspectives worth paying attention to in the constantly scrolling information from the officials of the National Development and Reform Commission answering questions from reporters, to the analysis and interpretation of different media, to the press conferences held by the State Council Information Office?

How to view the background of the introduction of the "31 Measures for Private Economy"?

Xu Hongcai, Deputy Director of the Economic Policy Committee of the China Policy Science Research Association: I think the issuance of this opinion on promoting the development and growth of the private economy has a special practical background. Because the economic data for the first half of the year has already been released, the Chinese economy is steadily recovering, but the endogenous growth momentum is still insufficient, especially when people pay attention to private investment, and the investment growth in Hong Kong, Macao, and Taiwan is negative. This indicates that the current total demand is insufficient, and the overall overcapacity situation is still quite prominent. This requires us to re-examine our future medium and long-term development. For the first time, the 31 articles on private economy directly link the development of private economy with the primary task of high quality and the achievement of the second centenary goal, giving private economy a high positioning. The statement that "private economy is a new force to promote Chinese path to modernization and an important foundation for high-quality development" has given private enterprises a "reassurance" and boosted market confidence. At the same time, as you can see, in the past 20 years, China has issued multiple opinion documents on encouraging the development of private enterprises and the private economy. In 2005, there were 36 articles on non-public economy, in 2010 there were 36 articles on private investment, and in 2019 there were 28 articles on private enterprises. In addition, this time there are 31 articles on private economy, totaling 131 articles, which are very rich in content. However, the content of different documents in different periods has their own focus and practical background. This time, we are more problem oriented and focused on long-term development to deploy. I believe that we need to address the current concerns of some private enterprises and lay an institutional foundation for long-term sustainable development in the future.

How to respond to the concerns of private enterprises and boost confidence in the "31 Measures for Private Economy"?

Xu Hongcai, Deputy Director of the Economic Policy Committee of the China Policy Science Research Association: The opinions on promoting the development and growth of the private economy are problem oriented, and I believe there are many specific operational details that have also been touched upon. For example, in creating a first-class business environment, it is necessary to improve regulatory fairness, standardization, and simplicity, eliminate selective law enforcement, and allow enterprises to self prove their innocence through supervision. For example, in terms of market access, project bidding, etc., continuously breaking down market access barriers. Each region and department shall not set or indirectly set access barriers in the form of filing, registration, annual inspection, recognition, certification, designation, or requiring the establishment of branch offices. These are specific requirements from a practical perspective. Additionally, I think the biggest highlight of this event is the special emphasis on the fundamental position of competition policy. Because everyone is equal before the law, we often say that private enterprises, state-owned enterprises, and foreign investment are treated equally. However, in reality, private enterprises may also feel that there are certain degrees of unfair treatment towards private enterprises in the actual implementation process. This time, it is also proposed to improve the framework of fair competition system and policy implementation mechanism, and adhere to the principle of treating all types of enterprises equally and equally.

How to view the opinions on promoting the development and growth of the private economy? Private enterprises speak out

As of the end of May, the number of registered individual industrial and commercial households in China exceeded 118 million, and the number of private enterprises exceeded 50 million, accounting for over 92% of the total number of enterprises. What are the impact of the latest "31 measures" on the private economy on enterprises? What aspects have left a deep impression on entrepreneurs?

Enterprises and entrepreneurs need a good public opinion environment to take action lightly

Xu Hongcai, Deputy Director of the Economic Policy Committee of the China Association for Policy Science Research: Further improvement of the public opinion environment is a practical need. In the past, there were indeed some negative voices that caused unnecessary interference to private enterprises, especially some unfair evaluations of successful entrepreneurs, which affected their physical and mental health and affected their enthusiasm for innovation and entrepreneurship. In the future, we will vigorously promote the deeds of outstanding entrepreneurs, guide the whole society to correctly view the wealth obtained by private economic personnel through legal and compliant operations, and also guide entrepreneurs to fulfill their social responsibilities. To provide understanding, tolerance, and assistance to the mistakes and failures that occur in the legitimate operation of private economic personnel, so that everyone can take action lightly and confidently innovate and start their own businesses.

How to implement policies effectively and fully unleash them?

Xu Hongcai, Deputy Director of the Economic Policy Committee of the China Policy Science Research Association: I think it is crucial to promote the 31 measures to the hearts of every private entrepreneur, but more importantly, it is necessary to strengthen the learning of party and government leaders and staff at all levels of government departments. Because this involves the issue of streamlining the relationship between the government and the market. In the past, some of the drawbacks in the business environment were generally due to the government's inadequate service to enterprises and economic activities, or in other words, there were deficiencies, offside, and so on. The role of the "tangible hand" was not played very well. In the forefront of reform and opening up in the southeastern coastal areas, the business environment is better, and the service level and cognitive level of government officials are also higher. In the future, different regions can better learn from each other and learn from each other's experiences.