The Chinese Communist Party’s (CCP’s) Central Committee and the State Council of the Chinese government issued the “Opinions on Supporting the Reform and Development of Private Enterprises.” In the contents, the CCP vows to “protect the legal property of private enterprises and entrepreneurs” and to “implement larger scale tax and fee cuts” to “substantially reduce the burden on private enterprises.”
This opinion claims to improve the fair and competitive market environment, improve a precise and effective policy environment, enhance the legal environment for equal protection, encourage and guide the reforms and innovations of private enterprises, and promote the normal and healthy development of private enterprises.
On the “protect the legal property of private enterprises and entrepreneurs,” the opinion claims to adopt measures such as seizure and freezing in strict accordance with legal procedures, strictly to distinguish illegal income in other case-related property and legal property, strictly to distinguish corporate legal personal property from shareholders’ personal property, and strictly to distinguish between the personal property of the persons involved and the property of family members.
As China’s economic policy has turned left in recent years, private enterprises are projecting a gloomier future. In the second half of 2019, the founders of a few large private enterprises in China retired one by one. Following the announcements, Alibaba founder Jack Ma, Ma Huateng from Tencent, Li Yanhong from Baidu, and Liu Qiangdong from JD.com, Inc. all resigned as chairman one after the other. In December, Wang Wei, chairman of SF Express Group, and Liu Chuanzhi, founder of the Lenovo Group announced their resignations. In response, Beijing’s recent move is suspected to boost the low economic sentiments, especially among the private sector.
Source: Central News Agency, December 22, 2019