China’s economic planner announced on Thursday that the nation would soon put into place two new policies aimed at assisting privately owned businesses.
The policy ideas were released a day after China’s senior party and government leadership issued extensive “opinions” on assisting non-state-owned firms; however, they did not set a timeline for when they would be implemented.
The overall attitude of businesspeople has become more pessimistic as a result of China’s lacklustre economic development after the country’s first recovery from the epidemic. In addition, real estate developers, educational institutions, and gaming firms, as well as online platform corporations, have all been under intense government scrutiny and pressure in the last three years.
However, even if GDP is slowing, Beijing is hesitant to engage in large-scale stimulus because, among other factors, there is a long-standing debt overhang.
According to comments made in Mandarin by Li Chunlin, deputy director of the National Development and Reform Commission, and translated by CNBC, the two upcoming policies would place a primary emphasis on encouraging corporate investment and the growth of businesses as a whole.
At a news conference on Wednesday, he discussed the need to develop the sectors of the economy that are not state-owned.
Li made note of the need to “guide society to have a correct understanding of the contribution and important role of non-state-owned businesses,” which may be seen as an indicator of shifting political currents.
Pony Ma, an executive at Tencent, wrote in an essay that was distributed by state media that the statement of support made on Wednesday provides platform firms a way ahead. This is another indication that Beijing is making an attempt to speak up its support for enterprises.
Tencent has validated this. Ma wrote the article.
“These measures play an important role in inspiring and guiding private enterprises to maintain confidence, march forward without (baggage), and boldly pursue development,” Ma remarked, according to a corporate translation of what he said.
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