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Chinese vice premier vows unwavering support for private sector

Source: Xinhua| 2018-10-19 17:39:47|Editor: Yamei
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BEIJING, Oct. 19 (Xinhua) -- Vice Premier Liu He Friday reiterated China's unwavering support for the private sector in an interview with Chinese reporters.

"I want to emphasize in particular that we must uphold the basic economic system," Liu said. "There must be no irresolution about working to consolidate and develop the public sector; and there must be no irresolution about working to encourage, support and guide the development of the non-public sector."

The remarks came amid concerns of private enterprises about the implementation of the basic economic system.

Liu acknowledged that misunderstanding and deviation existed in implementation, citing a viewpoint of some lenders that it was safe to provide loans to state-owned enterprises, but politically risky to loan to private businesses.

"This kind of understanding and practice is completely wrong," Liu said.

The private sector plays an important role in the economic system, contributing more than 50 percent of tax revenue, 60 percent of GDP, 70 percent of technological innovation, 80 percent of urban employment and 90 percent of new jobs and new firms.

"Without private enterprises, the entire economy cannot achieve stable development," Liu said.

Liu said the practices of not supporting private businesses for "private safety" are politically problematic and must be rectified.

"We must uphold the basic economic system and give full play to micro, small and medium-sized enterprises and the private sector in economic and social development," Liu said.

"We must pay high attention to the difficulties faced by micro, small and medium-sized enterprises and roll out precise and effective measures to help them.

"Efforts should be made to intensify research on working out policies aiming for boosting growth of private businesses in aspects including reducing burdens from taxes and administrative fees, solving financing problems, improving environmental governance, as well as enhancing technological innovation ability," Liu said.

"Efforts should also be made to help private businesses improve their own capability and adapt to market changes, and achieve high-quality development."

The vice premier added that the State Council and the All-China Federation of Industry and Commerce will send special groups to inspect the implementation of the basic economic system and the development of micro, small and medium-sized companies.

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