Chinese President Xi Jinping’s remarks on adherence to China'sbasic economic system indicate that China will not change its stance ofproviding support to the non-public economy, said a commentary published byPeople’s Daily.
Xi made the remarks at a panel discussion of political advisorsfrom the China Democratic National Construction Association and the All-ChinaFederation of Industry and Commerce during the annual session of the NationalCommittee of the Chinese People's Political Consultative Conference.
During his speech, Xi reaffirmed the importance of both publicownership as well as the non-public sector, explaining that these twosignificant components of China's socialist economic system should complementrather than contradict each other.
“China must unswervingly strengthen and develop the publicsector and also unswervingly encourage, support and guide the development ofthe non-public sector,” Xi said, urging the non-public sector to become evenmore successful.
Xi’s remarks laid out the dynamic guiding China’s economic development– China will adhere to its basic economic system, with public ownership playinga dominant role and diverse forms of ownership developing side by side.
In addition, it is China’s overarching policy to offerconsistent support to both the public and non-public economy.
Such an overarching policy, and ongoing maintenance of China’sbasic economic system, should provide confidence in the non-public sector andthe whole Chinese economy.
As Xi explained China’s supportive stance for the non-publicsector, “the role the non-public economy plays in China’s economic developmenthas not changed, China’s policies in encouraging, supporting and guiding thenon-pubic economy has not changed, and China’s commitment to creating afavorable environment for the non-public sector has not changed either.”
Thanks to favorable policies launched by the country, China’snon-public sector has grown rapidly since China began to reform and open upover 30 years ago.
Nowadays, the private economy accounts for over 60 percent of GDP, and creates more than 80 percent of jobs. Moreover, 65 percent of fixed asset investment and 67 percent of direct foreign investment come from thenon-public sector.
Given its achievements, China has no reason to diminish itssupport for the sector.
In the recent years, China released a series of legislation toprotect the legitimate interests and rights of all forms of economy. A higherpriority was placed on equality in rights and opportunities for all marketentities.
Since the 18th National People’s Congress of the CPC, China alsointroduced numerous measures that grant the non-public sector more marketaccess and ensure its equal growth opportunities. A series of policiesencouraging, supporting and guiding the development of the non-public sectorwere also launched.
Those non-public businesses are at present experiencing the bestpolicy environment ever.