Chinese officials have pledged to rein in law enforcement practices which have cooled private sector confidence. - Photo: AP
BEIJING: China is cracking down on behaviours from law enforcement seen as detrimental to the ordinary function of private businesses, a crucial step in restoring confidence as the country embarks on a whole-of-government effort to ensure a steady, sustainable economic recovery.
Jurisdiction-breaking trips by officers to detain suspects, arbitrary fines and disparities in the punishments meted out to private and public entities have all been areas of frustration for China’s enterprises.
As Beijing attempts to rally the private sector to reverse an economic slump, analysts said, entrepreneurs are expecting action to go along with words before they consider rekindling their faith.
But those words are still being spoken – and louder than ever. In a Tuesday meeting on the economy, Premier Li Qiang told an assemblage of business leaders that Beijing would “resolutely root out” persistent problems like fines, inspections and forced closures to guarantee peace of mind.
“The key to stabilising the economy is to stabilise enterprises,” Li was quoted by state news agency Xinhua as saying. “We must do a good job in helping them tide over difficulties and ensure they can benefit from policies.”
On the same day, the National Development and Reform Commission (NDRC) – China’s top economic planner and an overseer of the private sector – pledged to improve the situation at a widely watched press conference.
Li, also a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee, made the remarks at a symposium with experts and entrepreneurs to hear their views on China's current economic situation and the next steps on economic work.
Efforts should be made to accelerate the implementation of policies already introduced and formulate plans for policies currently under study as early as possible, he said at the symposium.
"We must get a clear understanding of the major trends and strengthen our confidence, while also facing up to the difficulties, responding to them actively, and effectively addressing prominent issues in economic operation," said Li.
Chinese Premier Li Qiang, also a member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee, presides over a symposium with experts and entrepreneurs to hear their views on China's current economic situation and the next steps on economic work, Oct 8, 2024. - Xinhua
The premier stressed the need to listen to the voices of the market and respond to social concerns when formulating and implementing policies, and continuously boost confidence in development.
He also underscored developing new policy options to stabilize the economy and promote development, and launching them timely in accordance with changes in the economic situation.
Work should be done to improve the business environment and stimulate the vitality of enterprises, said Li, who called for solid efforts to provide relief to enterprises in difficulties and implement pro-business policies.
China will continue to build a market-oriented, law-based and internationalized first-class business environment, Li Qiang said.
Li made the remarks during his meeting with Australian Prime Minister Anthony Albanese on the sidelines of the leaders' meetings on East Asia cooperation held in Vientiane.
China welcomes more Australian enterprises to invest in China, and hope that Australia will provide a fair, safe, non-discriminatory and predictable business environment for Chinese enterprises to invest and operate in Australia, Li said.
Premier Li also emphasised on Tuesday the need for faster and more effective implementation of economic policies to achieve China's growth targets for the year, as authorities ramped up measures in recent weeks to further strengthen the world's second-largest economy.
Speaking at a symposium with business leaders and economists in Beijing, Li called for swift actions to put in place the newly rolled out policies designed to stabilize growth and enhance support for businesses.
The nation's financial regulators unveiled a host of monetary easing measures last week, including cutting the reserve requirement ratio, key policy interest rates and existing mortgage loan interest rates, in order to anchor market confidence and underpin economic recovery.
A host of policies were also announced by local governments last week to reduce down payment rates for both first-home and second-home purchases, as part of steps to buoy the real estate sector.
The stronger-than-expected stimulus measures have since boosted investor confidence and spurred the nation's largest stock rally in years.
After listening to the advice from economists and business leaders on Tuesday, the premier emphasized the need to finalize concrete plans for policy measures currently under review, while closely monitoring and assessing their implementation and impact.
Adjustments must be made when necessary, and measures must be reinforced when needed, he said.
In addition, as preparations for next year's economic agenda are underway, Li highlighted the importance of developing a set of new policies aimed at stabilizing and boosting the economy. These measures should be rolled out in response to changing economic conditions to ensure sustained and steady growth, he added.
The premier called for concrete steps to alleviate burdens on businesses, saying that firm actions must be taken to address issues such as arbitrary fines, excessive inspections and unwarranted closures.
According to the National Bureau of Statistics, China's factory activity gauge improved marginally in September, but was still below the 50-point mark that separates contraction from expansion. The purchasing managers' index for China's manufacturing sector came in at 49.8 in September, up from 49.1 in August, the NBS said.
Li also presided over a study session of the State Council on Tuesday, which was centered on enhancing the consistency of macro policies. He pointed out that enhancing the coordination of policies is critical to boosting the efficiency of macroeconomic regulation.
The premier highlighted the need for various departments to enable greater consistency in macro policies and make joint efforts to promote sustained and healthy socioeconomic development.
In the context of significant downward pressure facing the economy, Li urged various sectors to actively implement policies that stabilize growth and expectations, while being cautious about introducing measures that could contract or suppress economic activity. - Agencies
