Private sector not happy with draft private economy promotion law
A former State Council official has highlighted deep dissatisfaction within the private sector over Beijing's draft Private Economy Promotion Law.
- ICYMI, an expedited draft of the law was released for public comment in October.
On Friday, the China Macroeconomy Forum (CMF) – a think tank affiliated with Renmin University – published a speech by Chen Yongjie delivered on November 16 at a forum on the private economy.
- Chen worked at the State Council Research Office for decades, where he focused on promoting the private sector.
- He now serves as Vice President of the Beijing Dacheng Enterprise Research Institute, which is dedicated to promoting the private sector's development.
Chen’s biggest revelation (CMF): The majority (31 of 56) of entrepreneurs recently surveyed on the draft law said the law "failed to meet expectations."
Chen called out the key issues with the draft:
- Its definition of the private economy is too narrow, excluding many modern private businesses.
- Provisions meant to safeguard private businesses' interests lack enforceability.
- It doesn't establish clear penalties for officials who infringe upon private businesses' rights.
Get this: During the first three days of the draft's 30-day public comment period, officials received over 1,000 public submissions – more than most drafts receive in total.
The bottom line: The law is supposed to boost private sector confidence, but without major revisions, it risks undermining it instead.