Inventory of the 2023 series of Xi notes|Earnestly implement the "two unswerving" to promote the development of the private economy

[Editor's note] 2023 is the first year for the full implementation of the spirit of the 20th National Congress of the Communist Party of China, and a year for economic recovery and development after the three-year transition of new crown epidemic prevention and control. China has withstood external pressure, overcome internal difficulties, achieved a rebound in the national economy, and made solid progress in high-quality development. At the end of the year and the beginning of the year, the Xi Economic Channel specially launched the "Inventory of 2023 Xi Notes" series, which Xi review the spirit of the important meetings of the year, take stock of the main line of economic work in 2023, and study the source of confidence and confidence in China's economy.

Commentator of this newspaper Zhang Liwei

It is an important task in 2023 to earnestly implement the "two unswerving" and encourage and support the development and growth of the private economy and private enterprises from the policy and public opinion. According to the deployment of the 2022 Central Economic Work Conference, it is required to put down the requirements for equal treatment of state-owned enterprises and private enterprises in terms of system and law, and encourage and support the development and growth of the private economy and private enterprises from the perspective of policy and public opinion. Protect the property rights of private enterprises and the rights and interests of entrepreneurs in accordance with the law. Leading cadres at all levels should solve problems for private enterprises, do practical things, and build pro-Qing political and business relations.

In addition to the intensive symposium of private entrepreneurs held by various ministries and commissions in the first half of the year to listen to the opinions and suggestions of private enterprises, in July 2023, the Central Committee of the Communist Party of China and the State Council issued the "Opinions on Promoting the Development and Growth of the Private Economy", which reaffirmed the important position and role of the private economy, responded to the key concerns of private enterprises, and put forward a series of policy measures for the pain points and difficulties of private enterprises. On July 24, the National Development and Reform Commission issued the "Notice on Further Promoting Private Investment and Striving to Mobilize the Enthusiasm of Private Investment", proposing 17 specific measures to optimize the financing support for private investment projects, and pushing the first batch of 715 private investment projects to relevant banks. In terms of recommending projects to private capital, we have promoted all localities to sort out and submit three lists of projects to be promoted to private capital, including a list of major projects, a list of industrial projects, and a list of franchise projects. In terms of unblocking the channels for reflecting private investment issues, relying on the online approval and supervision platform for investment projects, a special column for reflecting private investment issues has been established. In terms of promoting the issuance of real estate investment trusts (REITs) in the infrastructure sector by private investment projects, we will strengthen the guidance work in the early stage, and actively promote the issuance of infrastructure REITs by private investment projects, etc.

Subsequently, the National Development and Reform Commission and other departments issued the "Notice on the Implementation of Several Recent Measures to Promote the Development of the Private Economy", focusing on promoting fair access, strengthening factor support, strengthening legal guarantees, optimizing enterprise-related services, creating a good atmosphere, etc., and put forward 28 specific measures, including extending the policy period of increasing the reserved share of government procurement projects for small and medium-sized enterprises to more than 40% to the end of 2023, and extending the term of inclusive small and micro loan support tools to the end of 2024.

On August 1, the Ministry of Finance and the State Administration of Taxation issued the Announcement on the VAT Reduction and Exemption Policy for Small-scale VAT Taxpayers, extending the VAT reduction and exemption policy for small-scale taxpayers. Small-scale VAT taxpayers with monthly sales of less than 100,000 yuan are exempt from VAT. On August 5, the National Development and Reform Commission issued the "Notice on Improving the Government's Creditworthiness Performance Mechanism and Optimizing the Environment for the Development of the Private Economy", proposing 9 measures in three aspects: establishing a mechanism for obtaining and identifying the source of information on breach of contract and untrustworthiness, improving the mechanism for punishing untrustworthiness and credit restoration, and strengthening policy safeguards for the implementation of work. Each provincial-level department leading the establishment of the social credit system is required to rely on channels such as the credit website at that level, the State Council's "Internet + Supervision" platform, the industry and information technology department's "registration (complaint) platform for defaulting on payments owed to small and medium-sized enterprises", the local 12345 government service hotline, the business environment complaint and reporting platform, and the department for letters and visits, to establish or improve special columns for complaints of breach of contract and untrustworthiness, and accept and aggregate complaints of breach of contract and untrustworthiness involving government departments (including organs and public institutions) in that jurisdiction.

In terms of the rule of law, the Supreme People's Court has released 11 typical cases in which people's courts protect the property rights of private enterprises and the rights and interests of entrepreneurs in accordance with the law. The Supreme People's Procuratorate issued the "Opinions on Punishing and Preventing Crimes Infringing on the Lawful Rights and Interests of Private Enterprises by Internal Personnel of Private Enterprises in Accordance with Law, and Creating a Favorable Legal Environment for the Development of the Private Economy", which put forward specific requirements for the performance of procuratorial duties and further improved the relevant systems and mechanisms. The Ministry of Public Security has issued 26 measures to ensure the high-quality development of public security organs, fully implemented the management of the list of administrative licensing items, protected the property rights of enterprises and the legitimate rights and interests of operators in accordance with the law, and maintained the market order of fair competition.

In September, the Central Committee approved the establishment of the Private Economic Development Bureau within the National Development and Reform Commission, as a specialized agency to promote the development and growth of the private economy, strengthen the overall coordination of policies in relevant fields, and promote the early implementation and early effectiveness of various major measures of the central government. The main responsibilities of the Private Economic Development Bureau are to coordinate, organize and formulate policies and measures to promote the development of the private economy, formulate policies to promote the development of private investment, establish a regular communication and exchange mechanism with private enterprises, coordinate and solve major problems in the development of the private economy, and coordinate and support the private economy to enhance its international competitiveness. Also in September, the Inner Mongolia Autonomous Region issued special refinancing bonds, with a total of 66.32 billion yuan issued in three phases, and all the funds raised from this batch of bonds will be used to repay the debts owed to enterprises for which the government is responsible for repayment.

It should be said that in 2023, the mainland has done a lot of work in implementing the "two unswerving", whether it is from the strategic level or specific policy support, and has made arrangements. However, private companies still have expectations for the following. First, it is necessary to truly break down market access barriers, and at the same time open up to the outside world, we must also open up to private capital and treat everyone equally. Comprehensively implement the fair competition policy system, and strengthen anti-monopoly law enforcement to prohibit the abuse of administrative power to eliminate or restrict competition. Improve mechanisms for social credit incentives and restraints, complete mechanisms for credit restoration after untrustworthy conduct is corrected, and so forth.

Second, strengthen the rule of law guarantee for the development of the private economy. Protect the property rights of private enterprises and the rights and interests of entrepreneurs in accordance with the law, and further standardize compulsory measures related to property rights. We will continue to improve the intellectual property protection system and increase the protection of the original innovation of private small, medium and micro enterprises. Improve the regulatory law enforcement system and put an end to selective law enforcement. Improve the long-term supervision mechanism for enterprise-related fees. The legal guarantee for the development of the private economy should be treated equally, and there should be no distinction between enterprises with great influence and small, medium and micro enterprises, let alone between economically developed areas and economically backward areas.

Third, it is necessary to create a more stable policy environment. In the new stage of development, China's economic development concept and governance rules have shifted to marketization, rule of law and internationalization, and the transformation of the old and new mechanisms may have a certain impact on some enterprises, so communication should be strengthened and buffer mechanisms should be created. In the process of adjusting the structure, we should adhere to the principle of establishing first and then breaking down, and improve the government's creditworthiness performance mechanism.

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