Chinese Liu He assures business support, amid regulatory repression

BEIJING, Sept 6 (Reuters) – Chinese Vice Premier Liu has vowed that the government will continue to support the private sector amid growing concern that regulatory crackdown on a wide range of industries will hurt businesses.

Liu said that “guidelines and policies to support the private economy have not changed … and will not change in the future,” according to a report by the Xinhua news agency.

On Monday, he was speaking on video at a forum on the digital economy held in Hebei province in northern China.

Liu seemed to be signaling calm to companies during the crackdown on a number of industries, which have ravaged markets and left emerging companies and decades operating in an uncertain environment of the world’s second-largest economy. Read more

The private economy contributes more than 50% of tax revenue, more than 60% of GDP and 80% of urban employment in China, Liu said.

“The Chinese government realizes that no matter how hard the regulatory changes are, they realize they need entry into the Chinese market to help support their economy,” said Louis Tse, CEO of Wealthy Securities in Hong Kong. Kong.

“There has been a clean-up of the air and people have calmed down, the purchase has resumed especially in the A-share market,” he said, adding that additional details about the establishment of the Stock Exchange Beijing had also helped boost investor sentiment. Read more

Also on Monday, the head of the market regulator reiterated the government’s promise to support both the private and public sectors, and also said the “transparency and predictability” of policies should be increased.

President Xi Jinping has called for China to achieve “common prosperity,” trying to reduce a wealth gap that threatens the country’s economic rise and the legitimacy of the Communist Party government. Read more

But the implications of Xi’s policy change remain clear, with public disagreements from commentators in China.

Hu Xijin, the editor-in-chief of the Global Times, a tabloid published by the People’s Daily, attacked a widely circulated opinion piece in the state media that called revolutions “revolution.” The reforms are to strengthen regulation and improve social governance, Hu said.

In August, a Communist Party official said common prosperity does not mean “killing the rich to help the poor.”

China has said that excessively high incomes should be adjusted and companies encouraged to help society. Several heavyweights in the tech industry have recently announced major charitable donations. Read more

At a news conference in Beijing on Monday, Zhang Gong, head of China’s market regulator, said China would continue with a policy of “unwavering” support to both public and private economies, while preventing the ” disorderly expansion of capital “and monopolistic behaviors.

“There is an urgent need to coordinate and understand the relationship between development and security, efficiency and equity, vitality and order,” he said.

China’s “platform economy,” dominated by digital heavyweights, has improved resource allocation and innovation, but its expansion also carries risks to fair competition and data security, he said.

Report by Gabriel Crossley in Beijing; Additional reports by Scott Murdoch in Hong Kong; Edited by Christian Schmollinger, Sam Holmes and Carmel Crimmins

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