Restoring business confidence

China is taking new steps to foster a more dynamic private sector with a draft law to encourage private sector. The aim is to restore business confidence after the economic downturn and accelerate the creation of a new development model across various sectors.

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

Published on the NDRC website for public comment until November 8, the 77-article draft stipulates measures to promote healthy market competition; enhance the investment and financial environment; encourage private enterprises to participate in scientific and technological innovation projects and protect their economic rights and interests.

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

In recent years, the Chinese government has given many priorities to the private economic sector. In addition to tax exemptions and reductions, the country has also created conditions for private enterprises to participate more and more deeply in investing in key national projects. The private sector has access to large projects publicly online, has private property rights protected by law, and has access to preferential interest rate capital.

In addition to policy pressures, China’s private sector has also been severely impacted by slowing economic growth and geopolitical tensions. Observers say that taking this potential economic sector to a new level demonstrates the government’s commitment to addressing specific issues and responding to private sector concerns, while creating a better business environment with more policies and support.

THANH HANG

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