China is set to expedite the revision of its negative list for market entry and further remove barriers to market access, as part of its larger drive to bolster the healthy development of the private economy, the country's top economic regulator said on Tuesday.
The move came after President Xi Jinping, during a symposium on private enterprises on Monday in Beijing, reiterated China's commitment to boosting the private sector through concrete efforts, sending a clear message of support from the government, analysts said.
They said that policymakers will take further targeted measures to resolve issues faced by private companies and create a favorable business environment, which will significantly help boost confidence and expectations among private enterprises and entrepreneurs.
"China will accelerate the push for revising and updating the negative list on market access, and areas that are not on the list will all be deemed as fully open," said Zheng Bei, deputy head of the National Development and Reform Commission, according to a China Central Television news report.
She said the country will continue to open up fields, such as competitive infrastructure sectors and major national scientific research infrastructure, to private companies.
China will also encourage private enterprises to play a more active role in the implementation of major national strategies and the buildup of the nation's security capacity in key areas, as well as in programs for large-scale equipment upgrades and trade-in deals for consumer goods.
"The country is sending strong signals on optimizing the business environment for private enterprises, addressing market access and financing issues, and enhancing corporate confidence through the rule of law, which will help promote high-quality economic development," said Hong Yong, an associate research fellow at the Chinese Academy of International Trade and Economic Cooperation.
He highlighted that the healthy development of the private economy plays a pivotal role in keeping the economy dynamic, serving as a driving force for shoring up growth and stabilizing the overall economy.
According to the NDRC, the private sector's scale, innovation capabilities and international competitiveness have all significantly improved in recent years. Official data showed that private enterprises account for over 92 percent of the total number of businesses in China and more than 92 percent of the nation's high-tech companies.
Going forward, the government will work to remove the remaining obstacles to market entry and access to factors of production, building a unified, open, competitive and orderly market system, the NDRC said.
Zheng from the NDRC said that China will continue to strengthen legal protection for private enterprises and entrepreneurs, pushing forward the legislative process for a private economy promotion law. The draft law on promoting the private economy was submitted for deliberation in December to the Standing Committee of the 14th National People's Congress.
Bai Wenxi, vice-chairman of the China Enterprise Capital Union, said that China has outlined a clear direction for the future development of the private economy — promoting the high-quality growth of the private economy and encouraging private enterprises to play a bigger role in the implementation of national strategies and key areas of development.
"These initiatives have sent a clear signal of the country's high regard and support for the private economy, demonstrating that the private sector's position in China's economy is irreplaceable," he noted. "The country will continue to optimize the business environment and support the healthy development of the private economy."
Citing measures mapped out by the NDRC, such as revising the negative list on market access and addressing financing difficulties, he said that these will "provide a rising number of growth opportunities for private companies and help alleviate their burdens".
Looking ahead, Bai said it is advisable for the government to take further moves to remove some implicit barriers and resolve issues faced by the private sector, such as difficulties in accessing affordable financing.
"Potential moves may include further encouraging financial institutions to develop financial products tailored to private enterprises and expand their financing channels," he added.
Bai's views were echoed by Pan Helin, a member of the Ministry of Industry and Information Technology's Expert Committee for the Information and Communication Economy, who said he believes that the government will introduce more measures to support the development of the private economy.
"The focus will be placed on optimizing the business environment, such as streamlining administrative approval processes, improving efficiency, reducing operational costs for businesses, and enhancing the overall satisfaction and sense of benefit for private enterprises," Pan said.
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