China has taken a significant step toward fostering the development of the private economy by establishing a dedicated bureau within the country’s top economic planning body. This initiative comes in response to a series of policies aimed at bolstering the private sector’s growth.
Deputy head of the National Development and Reform Commission (NDRC), Cong Liang, announced during a press conference on Monday that the newly created bureau is tasked with enhancing policy coordination across relevant areas. Its primary objective is to ensure the swift implementation of related measures and the attainment of concrete results.
The bureau’s key responsibilities encompass monitoring, studying, and analyzing the progress of the private economy, as well as coordinating and orchestrating the formulation of policies and strategies to advance its growth. Additionally, it will devise policies to facilitate private investment expansion, according to the NDRC.
Moreover, the bureau will establish a mechanism for regular communication with private enterprises, coordinate efforts to address significant issues related to private sector development, and strive to enhance its international competitiveness.
Zhang Shixin, an official with the commission, emphasized that the development of the private economy spans a wide array of domains and necessitates close collaboration among various government departments. The newly formed bureau will primarily focus on coordinating these activities and ensuring policy implementation to create a conducive environment and offer substantial support for private sector growth.
In recent months, China has introduced a suite of policies to fortify the private economy’s growth trajectory.
In mid-July, the Communist Party of China Central Committee and the State Council jointly issued guidelines to stimulate private sector growth. These guidelines promised improvements in the business environment, increased policy backing, and strengthened legal safeguards for private sector development.
Later in July, the NDRC unveiled 17 measures designed to further incentivize private investment. In collaboration with multiple departments, it also released 28 measures aimed at enhancing the prospects of private enterprises in areas such as market access, factor support, legal assurance, business services, and the overall business environment.
In early August, the government introduced and extended an array of preferential policies to support small and private businesses, particularly in terms of tax reductions and fee reductions.
To reinforce financial support for private investment, Cong highlighted that the NDRC has been working closely with seven banks through an investment-lending linkage mechanism. It has already referred the first set of 715 private investment projects to relevant banks. Additionally, the NDRC has recommended the inaugural privately-invested clean-energy real-estate investment trusts (REITs) project to the China Securities Regulatory Commission and plans to propose more qualified REITs projects across various sectors.
In the realm of enhancing the business environment for private firms, the State Administration for Market Regulation has continued to intensify supervision and law enforcement activities. These efforts are geared towards standardizing market conduct, ensuring fair trade practices, and strengthening the protection of intellectual property rights. By the end of August, China’s market regulation authorities had probed and addressed 17 cases involving monopoly agreements and market dominance abuse, resulting in a total fine of 910 million yuan (approximately 126.77 million U.S. dollars). Furthermore, these authorities had investigated and resolved 6,870 unfair competition cases since the beginning of the year, leading to fines totaling 304 million yuan. During the first half of the year, they also handled 17,100 cases pertaining to intellectual property rights protection.
