VOA reported that, in recent years, private enterprises have been suffering a slowdown. On October 21, Xinhua published a letter Xi Jinping wrote, which stated that the Party’s consistent policy of supporting the development of private enterprises will not waver and any statements that negate and weaken the practice of the private economy are all wrong.
On October 21, Xinhua published a letter Xi Jinping wrote in response to some private entrepreneurs who were awarded for their contributions in a poverty relief campaign. In the letter, Xi acknowledged the historical economic contributions private businesses have made and stated that the “role of the private economy is unquestionable. Any statement or practice that denies or weakens the private economy is wrong.” Xi insisted that “supporting the development of private enterprises is the consistent policy of the Party Central Committee. This will not waver.”
According to VOA, a research report that China’s Cheung Kong Graduate School of Business released showed that the index of business conditions of Chinese private enterprises in August fell significantly from the previous month, from 55.6 in July to 49.8 in August, the worst performance in four years. The VOA article concluded that the current mechanism to “allow the state to advance and the private sector to retreat ” has caused private enterprises to be unable to have the same advantages as state-owned enterprises and has resulted in a large gap between the operations of these two types enterprise.
1. Xinhua, October 21, 2018
2. VOA, October 21, 2018