By hannover-web.com Recently, the government’s strong support for enterprises, especially private ones, has been quite clear and decisive.
From the Central Politburo meeting on September 26th, which called for assisting businesses in overcoming challenges, to the economic forum on October 8th that stressed the importance of stabilizing enterprises for economic stability, and the public consultation on the draft Private Economy Promotion Law on October 10th, followed by a press conference on October 14th discussing increased support for companies, this comprehensive policy approach is both thorough and impactful.
During a recent exchange with entrepreneurs, it became clear that some industries are indeed facing challenges, including unstable expectations and diminished confidence. The government is well aware of these issues and has acted promptly, demonstrating a targeted and problem-oriented approach.
What about the rise in regulatory violations? The government is taking immediate corrective action. Recently, some companies reported strong concerns regarding disruptive enforcement practices, reminiscent of a “big catch” mentality that poses serious challenges to businesses. The government has taken a firm stand against these unlawful practices, emphasizing the necessity for proper enforcement and regulations in various forums.
The Central Politburo’s September 26th meeting highlighted the need to further standardize regulatory practices affecting businesses. On October 8th, the head of the National Development and Reform Commission reiterated at a press conference that authorities should not engage in unlawful extraterritorial enforcement or opportunistic practices, nor should they impose arbitrary fines and inspections. The Deputy Minister of Justice, Hu Weili, on October 14th, stated that efforts would be made to enhance corrective actions and standardize inspections that have become excessive.
While halting these violations is crucial, improving the overall standard of enforcement is even more vital. The Market Regulatory Administration announced on the 14th that it would accelerate the introduction of service-oriented enforcement measures, establishing guidelines that promote more flexible approaches, such as warnings and administrative guidance for businesses.
These initiatives send a clear message to society: the government is unwavering in its commitment to protecting the legal rights of enterprises, aiming to create a fair, equitable, and transparent market environment for the growth of private businesses.
How should we address the lack of security? With the rule of law as a safeguard. To tackle the current economic challenge of insufficient demand, promoting consumer spending among households and encouraging investment from businesses is essential. Key to this encouragement is ensuring that entrepreneurs feel secure, which means providing stable expectations and confidence.
In terms of stabilizing expectations for private enterprises, the role of law is indispensable. The public consultation on the draft Private Economy Promotion Law is timely and significant.
For the first time, the draft includes mentions of the “two unwavering commitments” and reinforces that “promoting the sustained, healthy, and high-quality development of the private economy is a major policy that the state will uphold in the long term.” Once this content becomes law, it will provide stability and enforceability.
The primary benefit of this legislation is that it provides reassurance for entrepreneurs, addressing their most pressing concerns and allowing private companies and business leaders to confidently focus on their development.
Dong Yu, Executive Vice Director of the China Development Planning Institute at Tsinghua University, told us that he believes the Private Economy Promotion Law will be expedited, marking a significant event that will hold economic implications on par with “trillions” of yuan.
What can we do about the lack of orders and financing? There is robust support on that front. Many companies are grappling with insufficient orders and financing challenges, and relevant departments are proactively seeking solutions.
The shortage of orders reflects a lack of demand. In efforts to boost domestic consumption, the Ministry of Industry and Information Technology plans to introduce more concrete measures in the fourth quarter to stimulate demand and help businesses expand their markets and unleash potential, including intensified promotion of new energy vehicles.
Financing issues stem from a sluggish flow of financial resources to the real economy. To address this, the Financial Regulatory Authority has spearheaded the establishment of a coordination mechanism to support financing for small and micro enterprises, aiming for three goals: direct access to funding, quick processing, and reasonable interest rates. Banks are urged to make credit decisions within one month.
With companies facing hardships, the government is providing solid support. If confidence is lacking, it will be bolstered; if orders are low, demand will be expanded; if financing is scarce, channels will be opened. These initiatives are concrete, not just mere slogans, combining long-term strategies with immediate actions to help enterprises overcome their challenges.
