The Central Committee of the Communist Party of China and the State Council have issued opinions on promoting the development and growth of the private economy.

Opinions of the Communist Party of China Central Committee and the State Council on Promoting the Development and Growth of the Private Economy

(July 14, 2023)

The private economy is the driving force behind promoting China's modernization with Chinese characteristics. It is an important foundation for high-quality development and a significant force in realizing the goal of building a socialist modernized country and achieving the second centenary goal. In order to promote the development and growth of the private economy, the following opinions are put forward.

I. General Requirements

Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, thoroughly implement the spirit of the 19th National Congress of the Communist Party of China, adhere to the general principle of pursuing progress while ensuring stability, fully and accurately implement the new development concept, accelerate the establishment of a new development pattern, focus on promoting high-quality development, adhere to the direction of socialist market economy reform, and "unswervingly uphold two key points," accelerate the creation of a first-class market-oriented, law-based, and internationalized business environment, optimize the development environment for the private economy, protect the property rights and rights and interests of private enterprises in accordance with the law, comprehensively build a clean and transparent relationship between government and business, ensure that all types of ownership have equal access to production factors, fair participation in market competition, and equal protection under the law, guide private enterprises to continuously improve their development quality through self-reform, compliant operation, and transformation and upgrading, promote the growth, optimization, and strengthening of the private economy, make positive contributions to the new journey of building a socialist modernized country, shoulder greater missions, assume heavier responsibilities, and play a bigger role in the historical process of the great rejuvenation of the Chinese nation.

II. Continuously optimize the development environment for the private economy

Build a high-level socialist market economy system, continuously optimize a stable, fair, transparent, and predictable development environment, and fully stimulate the vitality of the private economy.

1. Continuously eliminate market access barriers. Localities and departments shall not set up or indirectly set up access barriers in the form of filing, registration, annual inspection, identification, certification, designation, or the requirement to establish branch companies. Clean up and standardize the preconditions and approval standards for administrative services such as administrative examination and approval, licensing, and filing, and shall not transform administrative services into intermediary services. Without legal basis, enterprises shall not be required to conduct self-testing, inspection, certification, appraisal, notarization, or provide proof before receiving administrative services. Steadily carry out market access efficiency evaluation, establish a mechanism for handling complaints and responses to market access barriers, and improve the collection and notification system for typical cases.

2. Fully implement the policy and system of fair competition. Strengthen the foundation of competition policy, improve the framework of the system of fair competition and the mechanism for policy implementation, and treat enterprises of all ownership types equally. Strengthen anti-monopoly law enforcement to prevent the abuse of administrative power to exclude or restrict competition. Operators shall not be granted franchise rights without fair competition, and the purchase, use, and provision of goods and services by specific operators shall not be restricted. Regularly release negative lists of market intervention behaviors, and promptly clean up and abolish policies that hinder the unified market and fair competition, such as local protection, market segmentation, and designated transactions. Optimize and improve the implementation of industrial policies, establish a catalog of preferential policies for enterprises, and promptly make it public.

3. Improve the mechanism of social credit incentives and constraints. Improve the credit information recording and sharing system, comprehensively promote the system of credit commitments, and incorporate commitment and performance information into credit records. Give full play to the role of credit incentive mechanisms and enhance the sense of achievement for creditworthy enterprises. Improve the mechanism of credit constraints, and implement punitive measures against responsible entities in accordance with the list of measures for dishonesty, in accordance with laws and regulations. To establish a credit repair mechanism after rectifying dishonest behavior, relevant management measures will be formulated. The government's integrity performance mechanism will be improved, and a sound system for recording and punishing government and public institution breaches of contract, arrears of payments, and refusal to comply with judicial rulings will be established, with the inclusion of such dishonest information in the national credit information sharing platform.

(IV) Improve the market-oriented restructuring mechanism. Encourage private enterprises to revitalize their existing assets and recover funds. Adhere to accurate identification and targeted measures, and apply bankruptcy restructuring and bankruptcy settlement procedures in a market-oriented and rule-of-law manner to enterprises that are in financial difficulties but still have development prospects and salvage value. Promote the revision of the enterprise bankruptcy law and improve supporting systems. Optimize policies related to the conversion of individual businesses into enterprises and reduce conversion costs.

III. Increase support for the private economy

Precisely formulate and implement various support policies, improve the implementation of policies, strengthen policy coordination, respond promptly to concerns and interests, and effectively address practical difficulties.

(V) Improve the policy system for financing support. Improve the mechanism for market-based risk sharing in financing involving banks, insurance companies, guarantee institutions, and securities firms. Improve the credit rating and evaluation system for small and micro enterprises and individual businesses, strengthen the collection of credit information related to enterprises, and promote service models such as "Credit Easy Loan". Support qualified private small and micro enterprises in financing through the bond market, encourage qualified private enterprises to issue bonds for technological innovation, and expand the coverage and enhance the credit enhancement of special support plans for private enterprise bond financing. Support qualified private enterprises in initial public offerings and refinancing.

(VI) Improve the mechanism for preventing and clearing arrears of payments on a regular basis. Strictly implement the "Regulations on the Payment of Funds to Guarantee the Interests of Small and Medium-sized Enterprises", improve the long-term mechanism for preventing and resolving arrears of payments to small and medium-sized enterprises, and increase the accountability and punishment for responsible persons in accordance with laws and regulations. Government agencies, public institutions, and large enterprises shall not refuse or delay payments to small and medium-sized enterprises and individual businesses by changing internal personnel, following internal payment procedures, or using reasons such as waiting for completion acceptance and final settlement audit in the absence of contractual provisions. Establish a regular disclosure, advisory, and enforcement system for arrears of payments. Strengthen the disclosure of commercial drafts information and improve the credit constraint mechanism of the bill market. Improve the mechanism for handling complaints and credit supervision of arrears of payments, and strengthen the exposure of cases of malicious arrears of payments. Improve the regular coordination mechanism between the clearance and audit, inspection, and supervision systems for arrears of payments.

(VII) Strengthen talent and employment demand guarantee. Smooth channels for talent flow to private enterprises, improve policies and mechanisms for personnel management, file management, and social security continuity. Improve the evaluation methods for professional titles in private enterprises, facilitate the evaluation of professional titles in private enterprises, and improve the market-oriented evaluation standards for professional titles. Establish a platform for the connection of employment information between private enterprises, individual businesses, and job seekers. Promote cooperation between schools and enterprises and the integration of industry and education. Promote the construction of the industrial workforce in the private economy and optimize the vocational development environment. Strengthen the protection of the rights and interests of flexible and new forms of employment, and leverage the role of platform enterprises in expanding employment.

(VIII) Improve the mechanism for direct and fast access to support policies. Give full play to the role of direct access to financial funds and promote fast access to funds related to enterprises. Increase the transparency of subsidies for enterprises and accept social supervision. Establish a "no application, immediate enjoyment" mechanism for supporting policies for private small and micro enterprises and individual businesses, and promote the use of commitment-based notification. Relevant departments will no longer require duplicate submission of materials that can be extracted from public data platforms. (IX) Strengthen policy communication and expectation guidance. Adhere to the procedures for adjusting policies related to enterprises in accordance with laws and regulations, and set reasonable transition periods based on actual conditions. Enhance the release and interpretation of policies directly targeting private enterprises and individual businesses. Support government departments at all levels in inviting outstanding entrepreneurs for consultations, fully leveraging the role of entrepreneurs in formulating and evaluating policies, plans, and standards related to enterprises.

IV. Strengthen the legal guarantee for the development of the private economy

Establish a legal environment that provides equal protection for various types of ownership and creates a favorable and stable expectation for the development of the private economy.

(X) Protect the property rights and rights and interests of private enterprises in accordance with the law. Prevent and rectify the use of administrative or criminal means to intervene in economic disputes, as well as local protectionism in law enforcement and judicial activities. Further regulate mandatory measures related to property rights to avoid excessive sealing, seizure, freezing, and confiscation beyond the scope of authority, amount, or time limit. For operating assets involved in cases that are not suitable for sealing, seizure, or freezing, while ensuring the normal progress of investigation activities, relevant parties may be allowed to continue reasonable use and necessary measures for value preservation and safekeeping, so as to minimize the impact of investigation and handling on normal office work and legal production and operation. Improve mechanisms for appeals and retrials of cases involving enterprises, and establish effective mechanisms to prevent and rectify wrongful cases on a regular basis.

(XI) Establish a system and mechanism to prevent and combat corruption at the source in private enterprises. Issue judicial interpretations to increase the punishment for corruption such as embezzlement, misappropriation of funds, and bribery by employees of private enterprises in accordance with the law. Improve the mechanism for the recovery and disposal of assets involved in cases. Deepen compliance reforms in enterprises involved in cases and promote compliant and lawful operation of private enterprises. Strengthen the governance of corruption at the source in private enterprises and guide them to establish a strict audit supervision system and financial and accounting systems. Give full play to the role of party organizations in private enterprises, promote legal education within enterprises, and create a culture of integrity and cleanliness. Establish a multi-subject participation mechanism for combating corruption in private enterprises. Promote the construction of law-based and clean private enterprises.

(XII) Continuously improve the intellectual property protection system. Increase the protection of original innovation in small and medium-sized private enterprises. Strictly implement systems such as punitive compensation for intellectual property infringement and behavior preservation. Establish a rapid handling mechanism for intellectual property infringement and administrative non-litigation enforcement, and improve the system of cross-regional jurisdiction of intellectual property courts. Study and improve the methods of protecting innovative achievements in business improvement, cultural creativity, and other fields of intellectual property, and crack down on unfair competition such as infringement of trade secrets and counterfeiting and confusion, as well as malicious trademark squatting and other illegal activities. Strengthen the criminal crackdown on intellectual property infringement and crimes. Improve the guidance mechanism for overseas intellectual property disputes.

(XIII) Improve the regulatory and law enforcement system. Strengthen the construction of standardized regulatory standards, publicly disclose regulatory standards and rules in accordance with the law, and enhance the stability and predictability of regulatory systems and policies. Enhance the fairness, standardization, and simplicity of regulation, and eliminate selective law enforcement and "prove innocence" style of regulation for enterprises. Encourage the joint release of unified regulatory policies, laws, regulations, and standards across administrative regions, and carry out coordinated law enforcement. Adhere to the principle of combining education with punishment, promote methods such as notification, reminder, and persuasion in law enforcement, and do not impose administrative penalties in accordance with the law for first-time minor offenses that are promptly corrected. (14) Improve the long-term supervision mechanism for enterprise-related fees. Continuously improve the system of government pricing for enterprise-related fees, regularly publicize it, and accept the supervision of enterprises and society. Smooth channels for reporting and complaints about illegal charges against enterprises, establish a standardized mechanism for sharing and transferring problem clues among departments, and implement joint disciplinary measures through market supervision, industry regulation, and credit regulation to expose typical cases of illegal charges.

Fifth, strive to promote the high-quality development of the private economy

Guide private enterprises to practice the new development concept, deeply understand the shortcomings and challenges they face, transform their development mode, adjust their industrial structure, and change their growth drivers. Adhere to the main business, strengthen the real economy, and consciously follow the path of high-quality development.

(15) Guide and improve the governance structure and management system. Support and guide private enterprises to improve their corporate governance structure, regulate shareholder behavior, strengthen internal supervision, and achieve standardized governance, effective checks and balances, and compliance operations. Encourage eligible private enterprises to establish a sound modern Chinese corporate system. Promote the separation of corporate property from personal or family property of shareholders in accordance with the law and clarify the ownership structure of enterprises. Study and establish a risk assessment system and warning mechanism to provide early warning for situations that seriously affect corporate operations and may cause social stability risks. Support private enterprises in strengthening risk prevention and management, guide the establishment of a comprehensive risk management system covering enterprise strategy, planning, investment and financing, and market operations, and enhance awareness and capabilities of quality management.

(16) Support the enhancement of technological innovation capabilities. Encourage private enterprises to increase research and development investment, carry out key core technology research, and actively undertake major national scientific and technological projects in accordance with regulations based on national strategic needs and industry development trends. Cultivate a group of leading private technology enterprises in key industries, small and medium-sized enterprises specializing in new and high technology, and industrial clusters with strong innovation capabilities. Increase the procurement of innovative products by the government, play the role of the first set (suite) insurance compensation mechanism, and support the iterative application of innovative products by private enterprises. Promote collaborative innovation among enterprises of different ownerships and different sizes through joint research on common technologies. Improve the management system of universities and research institutes and the mechanism for transforming achievements, mobilize their enthusiasm for supporting the innovation and development of private small and micro enterprises, and support the cooperation between private enterprises and research institutions to establish innovation platforms such as technology research and development centers, industrial research institutes, pilot-scale production bases, engineering research centers, and manufacturing innovation centers. Support private enterprises in strengthening basic and frontier research and achievement transformation.

(17) Accelerate digital transformation and technological upgrading. Encourage private enterprises to carry out research and development of digital common technologies, participate in the investment and construction of new infrastructure such as data centers and industrial Internet, and promote the application and innovation of low-cost, modular intelligent manufacturing equipment and systems. Guide private enterprises to actively promote standardization construction and improve product quality. Support private enterprises in green and low-carbon transformation of production processes, equipment, and technologies, accelerate the development of flexible manufacturing, enhance emergency production and capacity conversion capabilities, and improve the resilience of the industrial chain.

(18) Encourage the improvement of international competitiveness. Support private enterprises to extend their reach to core components and high-end manufactured products through their own strengths; strengthen brand building and enhance the reputation of "Made in China". Encourage private enterprises to expand overseas business, actively participate in the construction of the Belt and Road Initiative, and orderly participate in overseas projects, complying with local laws and regulations and fulfilling social responsibilities. To better guide and support private enterprises in preventing and responding to external challenges such as trade protectionism, unilateralism, and extraterritorial jurisdiction, it is necessary to strengthen departmental coordination and cooperation. In order to ensure the personal and property safety of private economic personnel overseas, a collaborative mechanism for risk prevention and resolution should be established.

(19) Support participation in major national strategies. Encourage private enterprises to voluntarily and independently improve the level of employees' enjoyment of the fruits of enterprise development through expanding employment opportunities and improving the wage distribution system. Support private enterprises in investing and developing labor-intensive manufacturing industries, equipment manufacturing industries, and ecological industries in the central and western regions and the northeastern region, promote the accelerated development of revolutionary old areas and ethnic areas, and invest in border areas to promote border development and prosperity. Support private enterprises in participating in carbon peaking and carbon neutrality, providing decarbonization technologies and services, increasing investment in renewable energy generation and energy storage, and participating in carbon emission rights and energy rights trading. Support private enterprises in participating in rural revitalization, promote the development of modern agricultural management entities and social service organizations, develop modern agricultural product processing industries with high quality, develop modern agricultural service industries according to local conditions, strengthen leisure agriculture, rural tourism, and other characteristic industries, and actively participate in the "Prosperous Enterprises, Prosperous Villages" campaign. Support private enterprises in participating in comprehensive infrastructure construction, guide private capital to participate in major projects and areas that need improvement in the new urbanization, transportation, and water conservancy sectors.

(20) Regulate and guide the healthy development of private capital in accordance with the law. Improve the legal system for regulating and guiding the healthy development of private capital, establish a "red and green light" system for capital establishment, improve the rules for capital behavior, and release a batch of investment cases with "green lights". Enhance the effectiveness of capital governance, improve the supervision capacity and modernization level of capital regulation system. Guide the development of the platform economy towards openness, innovation, and empowerment, make up for development shortcomings, support platform enterprises in creating employment, expanding consumption, and international competition, and promote the standardized and healthy development of the platform economy. Encourage private enterprises to concentrate on strengthening and optimizing their core businesses and enhancing their core competitiveness.

1. Promote the healthy growth of private economic personnel

Fully implement the principles of trust, unity, service, guidance, and education, stabilize people's hearts, inspire them, and unite them with practical measures, and guide private economic personnel to promote the entrepreneurial spirit.

(21) Improve the mechanism for ideological and political construction of private economic personnel. Actively and steadily carry out the development of party members among advanced individuals in the private economic sector. Carry out education on ideals and beliefs and socialist core values. Educate and guide party members among private economic personnel to firmly establish their ideals and beliefs, play a pioneering and exemplary role, and resolutely implement the Party's theories, guidelines, and policies. Actively explore and innovate the party building work in the private economic field.

(22) Cultivate and promote the entrepreneurial spirit. Guide private entrepreneurs to enhance their patriotism, courage to innovate, integrity, social responsibility, and expand their international horizons. Encourage outstanding entrepreneurs to serve as role models, increase the intensity of selection and commendation, vigorously cultivate the entrepreneurial spirit in the private economy, and timely summarize and promote the growth experience of entrepreneurs with Chinese characteristics that conform to the trend of the times.

(23) Strengthen the construction of the team of representatives from the private economic sector. Optimize the structure of the team of representatives from the private economic sector, improve the selection mechanism, take into account different regions, industries, and scale of enterprises, and appropriately tilt towards strategic emerging industries, high-tech industries, advanced manufacturing industries, modern service industries, modern agriculture, and other fields. To ensure a standardized political arrangement and improve the comprehensive evaluation system, it is important to prudently carry out the selection process for outstanding private sector individuals as candidates for people's congress representatives and members of the political consultative conference. The role of the Federation of Industry and Commerce as the main channel for orderly political participation of private sector individuals should be fully utilized. Furthermore, support should be provided to private sector representatives in playing a greater role in international economic activities and economic organizations.

(24) It is necessary to improve the education and training system for private sector individuals. Specialized training and learning mechanisms for private sector individuals should be enhanced, and efforts should be made to further strengthen education and training. The training system for small and medium-sized private enterprises should be improved, and a multi-domain, multi-level training system combining online and offline methods should be established. Emphasis should be placed on the hierarchical development of private sector individuals, the establishment of a mentoring system for young private sector individuals, and the promotion of orderly succession and inheritance of careers.

(25) It is essential to comprehensively build a close and clean relationship between government and business. The establishment of a close and clean relationship between government and business should be implemented in practice, and a new type of relationship characterized by mutual closeness and cleanliness should be established between Party and government officials and private entrepreneurs. Leaders at all levels should have sincere and open contact with private entrepreneurs, take proactive actions, provide front-line services, solve problems for private enterprises and entrepreneurs in accordance with laws and regulations, maintain the bottom line of communication, guard against corruption risks, and maintain a close yet appropriate and clean yet effective relationship. Private entrepreneurs should actively communicate with Party committees, governments, and departments at all levels, speak the truth, provide honest feedback, offer constructive suggestions, run their businesses with integrity, abide by laws and regulations, and conduct their operations in a transparent and upright manner.

1. Continuously create a social atmosphere that cares for and promotes the development and growth of the private sector economy

Guidance and support should be provided to the private sector in fulfilling its social responsibilities, presenting a positive image, and engaging in better interaction with public opinion, in order to create a favorable social atmosphere that fosters a correct understanding of and full respect for and active concern for the private sector economy.

(26) It is necessary to guide the whole society to have an objective and correct understanding of the private sector economy and private sector individuals. Theoretical research and publicity should be strengthened, adhering to a realistic and objective approach, maintaining the correct orientation of public opinion, guiding society to recognize the significant contributions and important role of the private sector economy, and adopting a proper perspective towards the wealth obtained by private sector individuals through legal and compliant operations. Firm opposition should be taken against erroneous statements and practices that negate or weaken the socialist basic economic system and the private sector economy, and concerns and doubts should be addressed in a timely manner.

(27) It is important to cultivate a public opinion environment that respects innovation and entrepreneurship in the private sector. The publicity and reporting of outstanding entrepreneurs and the accelerated development of world-class enterprises should be strengthened, gathering positive energy that advocates innovation and entrepreneurship, and enhancing the sense of honor and social value of entrepreneurs. A public opinion environment and social atmosphere that encourage innovation and tolerate failure should be fostered, providing understanding, tolerance, and assistance to private sector individuals in the face of mistakes and failures in their legitimate operations. Interdepartmental cooperation mechanisms should be established to crack down on acts of extortion and other behaviors using negative public opinion as leverage, and relevant reporting mechanisms should be improved to reduce the cost of safeguarding the rights and interests of enterprises.

(28) Support should be provided to private enterprises in fulfilling their social responsibilities more effectively. Education and guidance should be provided to encourage private enterprises to consciously assume the social responsibility of promoting common prosperity, actively build harmonious labor relations within their organizations, and promote the establishment of a community of shared interests among all employees, ensuring that the benefits of enterprise development are fairly distributed among all staff members. Private sector individuals should be encouraged and guided to become practitioners of development in the new era, realizing personal value at a higher level, demonstrating a good image of abiding by laws, observing social ethics, and assuming social responsibilities to the whole society, and achieving wealth with a sense of responsibility, righteousness, and compassion. Explore the establishment of a social responsibility evaluation system and incentive mechanism for private enterprises, guide private enterprises to actively participate in glorious causes and public welfare charities, participate in emergency relief, and support national defense construction.

VIII. Strengthen organization and implementation

(29) Adhere to and strengthen the leadership of the Party. Adhere to the centralized and unified leadership of the Party Central Committee over the work of the private economy, and implement the Party's leadership in all aspects of the entire process of work. Adhere to the correct political direction, establish and improve the working mechanism for the development of the private economy and private enterprises, clarify and strengthen departmental responsibilities, strengthen coordination and cooperation, and strengthen the linkage between the central and local governments. Support the All-China Federation of Industry and Commerce to play a better role in promoting the healthy development of the private economy and the healthy growth of private entrepreneurs.

(30) Improve the implementation of incentive and restraint mechanisms. Strengthen the implementation of policies that have been introduced, focus on promoting the implementation and refinement of policies such as promoting the development and growth of the private economy, protecting property rights, and promoting the entrepreneurial spirit, and improve the evaluation and supervision system. Establish and improve a platform for complaints and rights protection in the private economy, improve the system of confidentiality, handling procedures, and supervision and assessment mechanisms for complaints and reports.

(31) Timely summarize and evaluate. Conduct special evaluations and reviews of policies related to the private economy in line with the evaluation of macro policy orientation. Improve the evaluation system for China's business environment and establish a third-party evaluation mechanism for the implementation of policies. Strengthen the monitoring and evaluation of the private economy, and if necessary, study and formulate a unified and standardized index for the development of the private economy. Continuously innovate and develop the "Jinjiang experience", timely summarize and promote good experiences and practices from various regions, and solidify effective experiences and practices in an appropriate form. (End)

Source: Xinhua News Agency, original title: "Opinions of the CPC Central Committee and the State Council on Promoting the Development and Growth of the Private Economy"