Widespread Disappointment with China’s Draft Law on Private Sector Elevation
Widespread Disappointment Surrounds Draft Law
The status of the private sector is under scrutiny as the National Development and Reform Commission rolls out a draft law expected to bolster the private economy. Leading economist Teng Tai has expressed widespread disappointment, noting that the legal status of private companies needs enhancement to reassure entrepreneurs of the Chinese government's commitment.
Key Measures and Concerns
- The 77-article draft aims to address various stakeholder concerns and ensure healthy private sector development.
- It includes provisions for fair competition, improved investment conditions, and encouragement for private involvement in innovation.
- However, Teng Tai critiques that the law should acknowledge the private sector's vital role in job creation and tax contributions.
The Ministry of Justice emphasizes the private economy’s importance during a critical phase of economic recovery, yet concerns linger about the draft's enforcement capabilities and protections for private enterprises.
Impact of Recent Policies
- Business sentiment has dipped due to strict COVID-19 measures affecting the economy.
- , a private manufacturing owner, hopes for stronger enforcement measures against discrimination in contract awards.
- While the draft proposes punishment for unfair government practices, the execution remains ambiguous.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.