One of China’s top central government authorities has flagged a slew of measures to support the growth of enterprises in the country’s private sector.
Jin Xiandong (金贤东), policy research office chair at the National Development and Reform Commission (NDRC), said that the authority is currently taking the lead in strengthening policy measures to support the growth of China’s private enterprises, in accordance with the requirements of the “Opinions Concerning the Operation of a Better Development Environment and Supporting Private Enterprise Reform and Development” (关于营造更好发展环境 支持民营企业改革发展的意见).
“The private economy is an important component of China’s economy, and continuing to optimise the development environment of the private economy and stimulate the vigour and innovative capability of private enterprises will have major significance for accelerating the establishment of a dual circulation development condition,” said Jin on 18 May at a press conference held by the NDRC.
Jin said that efforts to support private enterprise would encompass four areas:
- Expanding the investment space for private enterprises. This will include i) improving support for social capital to participate in policy; ii) standardising the promotion of public-private partnership (PPP) models; iii) further improving mixed-ownership reforms of state-owned enterprises.
- Expanding the vigour of financial support. This will include i) continuing to support market-based debt-equity swaps for private enterprises, and helping private enterprises to transition through difficulty; ii) further supporting private enterprises in the issuance of bonds, and resolving the financing difficulties of private enterprises; iii) appropriately undertaking infrastructure sector real-estate investment trust (REIT) trials.
- Supporting private enterprises to participate in major national strategies. This will include i) Supporting and guiding private enterprise to participate in Belt and Road development; ii) supporting private enterprise to actively invest in clean energy and contribute to efforts to achieve peak carbon and carbon neutrality goals.
- Effective perform standardisation work for the development of the private economy. Undertake work in relation to private economy demonstration cities, to play a guidance and demonstration role when expediting the development of the national private economy.