China not targeting private economy with regulatory crackdown, official says
What’s new: China’s recent crackdown on illegal activities, such as monopoly and “disorderly capital expansion,” should not be seen as targeting the private economy, according to a senior official at a conference on Thursday. press conference (link in Chinese).
The measures taken by the government “do not target companies with a specific type of ownership, let alone specific companies with a specific type of ownership,” said Xu Shanchang, an official with the National Development and Reform Commission. (NDRC), the country’s top official. economic planner.
These are practical and necessary actions to ensure compliance with the rules, as well as the healthy development of related industries, Xu said, adding that they will create a fairer and better environment for all businesses, including private enterprises.
Xu also noted that private companies, especially downstream micro, small and medium enterprises, as well as those in the service sector, are under pressure due to rising raw material costs and Covid-19 outbreaks. Jiang Yi, another NDRC official, said at the same conference that China will strongly support private companies and solve the problems they face.
The background: China’s multiple crackdown on misconduct involving large tech companies, the after school tutoring industry, carpooling companies, Game and the showbiz industry sent the market and investors on a roller coaster ride. The end of the crackdown is nowhere in sight.
The main regulator of the Chinese market is expand its antitrust team, and President Xi Jinping called for better regulation of the country’s multibillion-dollar tech industry on Monday. At the same time, Beijing has also made efforts to reassure angry investors. Vice Premier Liu He said last month that China’s support for the private economy has not changed and will not change in the future.
Related: In Depth: China Trying to Calm Fearful Investors Amid ‘Regulatory Storm’
Quick Takes are condensed versions of stories related to China for quick news that you can use. To read the full story in Chinese, click here.
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