CHINA-INTERNAL: LEADERSHIP - XI JINPING REASSURES PRIVATE ENTERPRISES
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Xinhua reported (November 2) that Chinese President Xi Jinping convened an unprecedented “symposium” on November 1, to hear the views of dozens of representatives from the private sector – including Robin Li of Baidu and Pony Ma of Tencent. They were joined by economic policymakers, ministers and bankers as well as Vice Premiers, Han Zheng and Liu He. Xi Jinping told entrepreneurs that their businesses will be protected and Beijing will try to find new ways – such as tax cuts and bailout funds – to help them. The state-owned CCTV showed Xi Jinping shaking hands with the business delegates. When one told the President that his speech had made him feel more confident, Xi Jinping replied, “I’m here today to boost your confidence.” Xi Jinping said “In recent days, some people have made remarks negating and doubting the private economy. For example, some argued that the private economy has completed its mission and will fade out … some wrongly argued that setting up party cells and labour unions in private businesses is intended to control private enterprises … all these statements are completely wrong and do not conform to the party’s policies.” He said the private economy had contributed much to China’s economic miracle and that Beijing’s policy of “encouraging, supporting and guiding” the private economy “has not changed”. He also told the gathering that this support would involve “substantial” tax cuts for the private sector and that banks would be encouraged to lend more to private borrowers and ordered local governments to “rescue” troubled private sector firms, saying they could “conduct necessary financial rescues of private businesses with good business prospects”. In addition, Xi Jinping promised market access and equal treatment for the private sector, especially when it came to government campaigns to reduce capacity and pollution.
(Comment: A Politburo meeting on October 31, concluded that China’s external environment was going through “profound” changes. China's 'private' economy contributes 60 per cent of China’s gross domestic product and 80 per cent of its jobs. But the private sector is bearing the brunt of the country’s economic slowdown, and many entrepreneurs are feeling increasingly insecure in the face of a powerful state.) |