Chinese President Xi Jinping’s remarks on adherence to China’s basic economic system indicate that China will not change its stance of providing support to the non-public economy, said a commentary published by People’s Daily.
Xi made the remarks at a panel discussion of political advisors from the China Democratic National Construction Association and the All-China Federation of Industry and Commerce during the annual session of the National Committee of the Chinese People’s Political Consultative Conference.
During his speech, Xi reaffirmed the importance of both public ownership as well as the non-public sector, explaining that these two significant components of China’s socialist economic system should complement rather than contradict each other.
“China must unswervingly strengthen and develop the public sector and also unswervingly encourage, support and guide the development of the non-public sector,” Xi said, urging the non-public sector to become even more successful.
Xi’s remarks laid out the dynamic guiding China’s economic development – China will adhere to its basic economic system, with public ownership playing a dominant role and diverse forms of ownership developing side by side.
In addition, it is China’s overarching policy to offer consistent support to both the public and non-public economy.
Such an overarching policy, and ongoing maintenance of China’s basic economic system, should provide confidence in the non-public sector and the whole Chinese economy.
As Xi explained China’s supportive stance for the non-public sector, “the role the non-public economy plays in China’s economic development has not changed, China’s policies in encouraging, supporting and guiding the non-pubic economy has not changed, and China’s commitment to creating a favorable environment for the non-public sector has not changed either.”
Thanks to favorable policies launched by the country, China’s non-public sector has grown rapidly since China began to reform and open up over 30 years ago.
Nowadays, the private economy accounts for over 60 percent of GDP, and creates more than 80 percent of jobs. Moreover, 65 percent of fixed asset investment and 67 percent of direct foreign investment come from the non-public sector.
Given its achievements, China has no reason to diminish its support for the sector.
In recent years, China released a series of legislation to protect the legitimate interests and rights of all forms of economy. A higher priority was placed on equality in rights and opportunities for all market entities.
Since the 18th National People’s Congress of the CPC, China also introduced numerous measures that grant the non-public sector more market access and ensure its equal growth opportunities. A series of policies encouraging, supporting and guiding the development of the non-public sector were also launched.
Those non-public businesses are at present experiencing the best policy environment ever.
Local governments now need to put these policies into practice by formulating detailed measures suitable to their own conditions, thus allowing local private companies to truly benefit from such policies.