Liu Shijin: Solving Formal Equality and Actual Inequality in Private Enterprises

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 Liu Shijin: Solving Formal Equality and Actual Inequality in Private Enterprises


At todays press conference of the 13th Second Session of the CPPCC National Committee, Liu Shijin, member of the CPPCC National Committee and former deputy director of the Development Research Center of the State Council, said that in view of the lack of confidence in the development of private enterprises, confidence and expectations could be enhanced in three aspects: confidence in the policy of supporting the development of private enterprises; confidence in the policy of supporting private enterprises; and effective solution by the legal system; Formal equality and actual inequality in private enterprises.

Liu Shijin said that first, we should have confidence in the policy of supporting the development of private enterprises. The policies of the Party and the government to support the development of private enterprises are clear, consistent and keep pace with the times. Private economy is good, so is Chinas economy. If the private economy is not good, Chinas economy will not be good. The policy of supporting the development of private enterprises cannot be changed, nor should it be changed.

Second, supporting private enterprises depends on policy and legal system. In some places, new officials ignore old accounts and pollution control is all-in-one. These phenomena show that some governments lack the protection of property rights, the spirit of contract and the concept of legal system. Liu Shijin said that it is important to support the development policies of private enterprises, but more importantly, a stable legal environment should not be changed by short-term policy changes.

Thirdly, we should effectively solve the underlying rules of formal equality but actual inequality in private enterprises. For example, the reasons for the financing problems of small and medium-sized enterprises are that banks still mainly lend to state-owned enterprises and large enterprises. In order to solve the financing problem of small and medium-sized enterprises, we should deepen the reform. After the reform, private enterprises will have a sense of gains, which will benefit both nominally and practically. Liu Shijin said.