China Economic Roundtable: Promulgation of private sector promotion law timely is significant, says official
BEIJING: The promulgation of China's private sector promotion law is timely and of great significance, says Yang Heqing, head of the economic law department of the Legislative Affairs Commission of the National People's Congress (NPC) Standing Committee.
Chinese lawmakers voted to adopt the private sector promotion law after a draft version was submitted for the third review at the 15th session of the Standing Committee of the 14th NPC that concluded on Wednesday (April 30).
For the first time "unswervingly consolidating and developing the public sector and unswervingly encouraging, supporting and guiding the development of the non-public sector" and "facilitating the healthy development of the non-public sector and those working in it" are written into law, Yang said during the latest episode of China Economic Roundtable, an all-media talk show hosted by Xinhua News Agency.
In an unprecedented move, this law stipulates that promoting the sustained, healthy and high-quality development of the private economy is a major and long-term policy of China, Yang noted.
Since the reform and opening up in 1978, China's private economy has grown from small to large and from weak to strong, constantly developing and expanding.
However, as the problems of unbalanced and inadequate development in the country remain prominent, and changes unseen in a century accelerate across the globe, the private economy is facing new opportunities as well as many difficulties and challenges in its development, Yang noted.
The formulation of the law is of great and far-reaching significance for stabilizing expectations and boosting confidence throughout society, stimulating the development momentum of the private economy, and promoting high-quality development.
Yang also stressed the need to promote the formulation and revision of supporting regulations and systems in a coordinated manner, as well as the implementation of various support and guarantee measures in detail, to ensure the correct and effective application of this law. - Xinhua
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In a plan aimed at revitalising rural areas during the period from 2024 to 2027, the State Council, China's cabinet, outlined measures to 'fully promote rural consumption', including the development of county-level commercial systems, providing a key focus for unleashing rural consumption potential. But researchers remain cautious about whether the rise of consumption in lower-tier markets is sufficient to revitalise overall consumer activity. Liu, the Beijing professor, noted that compared to big cities, lower-tier cities lag behind in infrastructure and the overall consumption environment, including consumer rights protection, limiting their consumption potential. 'Whether the consumption boom in these regions can sustain China's shift to a consumption-driven economy is hard to answer, but it is undoubtedly a crucial supplement,' he said. Fudan University economist Shi Lei said that while growth is evident, county-level consumption still faces constraints, primarily due to insufficient local financial resources, with many areas, including regions mainly populated by ethnic minorities, relying on fiscal transfer payments from higher-level governments to sustain development. 'In the long term, the potential arising from underdevelopment should be recognised,' he said. 'But short-term performance should not be overestimated.' -- SOUTH CHINA MORNING POST
