Central leadership keen to promote private economy

Workers work at a workshop of Jack Sewing Machine Co., Ltd. in Taizhou, East China's Zhejiang province, March 23, 2023. The guideline the Communist Party of China Central Committee and the State Council, China's Cabinet, released on July 19 to boost the growth of the private economy is a milestone in the history of private sector development. China's experiences in building and developing its market economy since the launch of reform and opening-up in the late 1970s show that the top priority for fulfilling the 31 requirements in the guideline document is to develop a favorable environment for the development of the private economy and foster a sound relationship between the government and private enterprises based on rule of law. The private enterprises also need to focus on promoting and operating legitimate, upright businesses, while taking reasonable risks without speculating, promoting innovations, making scientifically sound business choices, and maintaining a rational and effective production structure to ensure high-quality development. The government, on its part, should ease its administrative control over private enterprises and, instead, provide efficient and law-based services for the private economy, by standardizing the administrative approval, licensing and filing processes, establishing mechanisms for addressing complaints, removing market access barriers, improving the system for collecting and reporting cases, periodically releasing negative lists, preventing the use of administrative or other means to interfere in economic disputes or inappropriately seize, freeze or confiscate corporate assets beyond the scope of authority.