China unveils 5-year plan’s support for private sector, financial strength

The Central Committee of China’s ruling Communist Party has officially announced its proposals for the country’s 15th five-year plan, including language that signals strategic support for the private sector and an accelerated transformation into a financial power, easing market concerns about their positions in the economy over the next five years.

These messages were not mentioned in the communique published last week at the end of the committee’s fourth plenum.

“The state should implement the Private Economy Promotion Law to ensure, through legal and institutional means, equal access to production factors, fair participation in market competition and effective protection of legitimate rights and interests, so as to develop and expand the private economy,” the proposal document said.

It vowed to “fully stimulate” the vitality of all types of business entities and encourage the joint development of various forms of ownership.

The proposal also called for a more “sound and standardised” mechanism for law enforcement involving companies, cautioning against unlawful cross-regional enforcement and profit-driven enforcement.

The recommendations follow other actions from Beijing in recent years to court private business owners and boost confidence in the private sector amid an economic slowdown.

The committee also pushed for increased access for private capital in key infrastructure projects, under the guidance of public funds.

South China Morning Post