China To Increase Support For Private Firms To Bolster Recovery  

• China on Wednesday pledged to make the private economy "bigger, better and stronger" with a series of policy measures designed to help private businesses and bolster the flagging post-pandemic recovery.
• Weak growth in the world's second-largest economy has created an urgency to revive the private sector, a key growth driver that has been bruised by COVID-19 curbs and a wide-ranging regulatory crackdown that targeted sectors from technology to property.
• China will strive to create a market-oriented first-class business environment, state news agency Xinhua said, quoting guidelines published by the Communist Party and the cabinet. "The private sector is a new force to promote Chinese-style modernisation, an important foundation for high-quality development and a key force to promote China's comprehensive construction of a socialist modern power," Xinhua said.
• The measures include protection for the property rights of private firms and entrepreneurs and steps to ensure fair market competition by breaking down market-entry barriers. They will also create a "traffic light" system to make clear the areas in which private investors are able to invest, as well as encourage some private companies to issue technology innovation bonds.
• Authorities have started to reverse some restrictive policies on tech and property sectors to try to boost the economy, with policymakers holding a series of meetings with companies from sectors ranging from tech to modern logistics to try and increase confidence.
• China is also encouraging private enterprises to increase investment in research and development and participate in investment and construction of new types of infrastructure.

(Source: Reuters)