New Top Document Promoting China's Private Economy

Full translation and detailed explanation: how Beijing works to change the narrative.

The Central Committee of the Communist Party of China (CPC) and the State Council have published a document dedicated to promoting the development and expansion of China’s private economy, Xinhua News Agency reported on Wednesday, July 19 evening, in an apparent effort to shore up the private sector’s confidence.

In China’s political system, a document jointly issued by the two top organs - of the CPC and the Government - is the highest-level official document possible. The 7pm 新闻联播 News Simulcast, the politically significant news program broadcasted across almost all Chinese TV in prime time, put its reporting of the document right behind General Secretary Xi Jinping’s activities and before Premier Li Qiang’s activities.

According to the Xinhua report, the Opinions of the Central Committee of the Communist Party of China and the State Council on Promoting the Development and Growth of the Private Economy was formulated on July 14 and only made public today/July 14. But the delay was not unusual, as documents at this level are typically made public a bit later.

China’s National Bureau of Statistics reported disappointing numbers on the economy for the second quarter on Monday/July 17, which missed market expectations and revealing record-high youth unemployment.

In recent weeks, Chinese leaders schedule many meetings with top executives of private companies and multinational corporations. Li Qiang, China’s Premier and No.2 official, met eight private companies on July 12, where five others submitted written statements. A day later, severn ministries issued an interim regulation on generative artificial intelligence less stringent than previously known.

The head of the National Development and Reform Commission (NDRC), the key economic policy-making agency, met five private businesspeople on July 4 and five others on July 10. The commerce minister met executives of Japanese companies on July, 17, multinational corporations in the health industry on July 5, and U.S. companies on May 25.

In the words of NDRC, which explained to Xinhua on the background of the document, “In recent times, the development environment of the private economy has undergone certain changes, and many private enterprises are facing problems and difficulties. There is an urgent need to address these new circumstances, improve the institutional mechanisms that promote the growth of the private economy, boost confidence in the outlook for the private economy, and further stimulate the vitality of private economic development.”

Private entreprenurs have jumped in to give positive feedback to Wednesday’s document. Pony Ma, the low-profile founder of Tencent, leading Internet company and operator China’s dominant everything app WeChat, told Chinese media tonight that “the 'Opinions' have formulated and issued a series of policy measures concerning the high-quality development of the private economy. These measures play an important role in inspiring and guiding private enterprises to maintain confidence, march foward without luggage, and boldly pursue development."

Ma also published an op-ed in a WeChat blog of China’s national broadcaster, writing

The "Opinions" accurately and comprehensively address the challenges and opportunities faced by the private economy and private enterprises. The targeted measures introduced have strengthened everyone's expectations of achieving high-quality development. In the past two years, some private enterprises have encountered significant difficulties and challenges due to the impact of the pandemic and other changes in the international and domestic environments, which have affected their development prospects. Based on in-depth research, the "Opinions" provide institutional arrangements and clear guidance on issues of concern to enterprises, such as the business environment, policy support, regulatory orientation, rule of law guarantee, and public opinion atmosphere. They transform the requirements of "equal use of production factors, fair participation in market competition, and equal legal protection" for private enterprises into concrete policy measures, which have strengthened everyone's confidence in optimizing and strengthening their businesses.

The "Opinions" set comprehensive strategic requirements for the internet industry, providing a clear development direction for the platform economy and adding determination and motivation to our continuous exploration. Internet enterprises are an important part of the private economy, and the role of the platform economy in empowering the real economy, driving technological innovation, and exploring international markets is increasingly prominent. Currently, China's platform economy has entered a new stage of development, and previous development models are being renewed and reshaped. The value of expanding demand, promoting innovative development, creating employment and entrepreneurship opportunities, and providing public services needs to be fully realized.

Before presenting a full translation, here are some notes:

Apart from concrete policies, an important signal value is that the CPC Central Committee and State Council issuing a dedicated document to Promoting the Development and Growth of the Private Economy. That’s an unmistakable effort to shore up the confidence in - and of - the private economy.

The most consequential measures - if implemented thoroughly - in the document target the insitutional, systemic discrimination against the private economy that has plagued China’s economy - and society - for years.

Viewed from a big picture, the uneven playground underneath the state-owned economy and the private sector - which also applies to multinational corporations - is a result of the incomplete transition of the People’s Republic of China. Westerners see the unequal access to production factors, unfair participation in market competition, and uneven legal protection as political, but Beijing most likely puts it as an unfinished process of furthering economic reform and opening-up. In other words, Beijing appears to believe level playground can be achieved within China’s political framework and the problem lies only in perfecting its “socialist market system.”

And this document is one of the perfections. At the beginning of the document, the private economy is described as “a driving force behind promoting the Chinese path to modernization, an important foundation for high-quality development and a significant force in achieving the two centenary goals.”

Do not take these descriptions lightly. The 13th National Congress of the CPC in 1987 said

private economy is a necessary and beneficial supplement to the public economy.

The 15th National Congress in 1997 institutionalized the private economy as one part of China’s “basic economic system:”

The basic economic system of China's primary stage of socialism is characterized by the mainstay of public ownership and the simultaneous development of various forms of ownership

The 16th, 17th, and 18th National Congress said

We will steadfastly uphold and improve the basic economic system featuring the mainstay of public ownership and the simultaneous development of various forms of ownership. We will unwaveringly consolidate and develop the public sector of the economy, and unwaveringly encourage, support, and guide the development of the non-public sector of the economy.

The latter is known as “two unwaverings,” which you will come across in the document later.

The 3rd Plenary Session of the CPC Central Committee, held a decade ago, upgraded the role of the private economy in China

The basic economic system featuring the dominance of public ownership and the simultaneous development of various forms of ownership is an important pillar of the socialist system with Chinese characteristics. It also serves as the foundation of the socialist market economy. Both the public sector and the non-public sector of the economy are integral components of the socialist market economy and crucial foundations for China's economic and social development.

So the private economy took the leap from merely a “supplement” in 1987 to part of a “pillar” and “crucial foundations” in 2013.

According to Xi, China’s top leader, in 2018, China’s private economy contributes over 50% of China’s tax revenue and 60% of China’s GDP, is responsible for 70% of innovation and 80% of urban employment, and provides 90% of new jobs. Now, according to this document,

The private economy is a driving force behind promoting the Chinese path to modernization. It is an important foundation for high-quality development and a significant force in achieving the two centenary goals.

Then the document goes into the General Requirements part, which is the principles underlying the following 31 points. Almost each of the principles is a set phrase in the Chinese official speak, and I can probably write an essay on each of them, so let’s just say the most accessible is what Tecnent founder Pony Ma just wisely picked out

ensure that various forms of ownership of the economy have equal access to production factors, fair participation in market competition, and equal legal protection

Now the 31 points begin. And they key to understand this sort of document - issued by the CPC Central Committee and State Council - is that, pragmatically speaking, they are more of a marching order for China’s vast and sophiscated CPC and State organs to amend existing laws and regulations and write new ones, rather than enforceable rules that non-state actors could directly cite when they encounter a particular issue in everyday life or business operation.

In legislation, China has national laws passed by the national legislature, but provincial legislatures could also pass provincial laws as long as they don’t violate national laws.

On the side of the administrative branch, the State Council, its central Ministries, the provincial governments, their provincial departments, the municipalities, their municipal departments, the counties, and their county departments all release their respective regulations. Sometimes, lower-level governments publish their regulations purely for enforcing their upper-level regulations.

The layers of laws and regulations are what governs the conduct of the Chinese state on a daily basis. For example, Munitipality X of Province Y has a regulation on artificial intelligence (AI) development, and that regulation is typically the most direct regulation that AI companies in X have to deal with on a daily basis. But all these laws and regulations, however they are called, must implement - at least the “spirit” of - a joint CPC Central Committee and State Council document.

So how does this work? Let’s use the first point of this document as an example:

(1) Continuously remove barriers to market access. Local governments and central government departments must not set up or implicitly set up access barriers in the form of filing, registration, annual inspection, accreditation, certification, designation, or requiring the establishment of branch companies.

When one businessperson encouters what they believe is a market access barrier, this provides the “spirit” it can quote, but typically not the direct government rule, because Point 1 is clear but vague - what constitutes a market barrier? Who decides if it is? What happens even if it has (somehow) been determined as a market barrier? Point 1 of this document has no answer.

The way it works is that, based on Point 1, Chinese local governments and central government departments will revisit their regulations or keep the words in mind in making new ones. If there is a public discussion (but not a litigation, which is based on laws), then this document is also a crucial reference point because it sits at the top of the hierachy.

Is everything in the document new? No. For example, Point 4 says “Promote the revision of the Enterprise Bankruptcy Law and improve supporting systems” but the revision of the Enterprise Bankruptcy Law is already on the 2023 agenda of China’s national legislature. Then what to make of it? Well, it’s fair to say the revision is on the radar of China’s top leadership and is one of the priorities.

Finally, it’s certain that all levels of CPC committees, goverments, private entreprenurs, and media will stay on message of this document for days if not weeks. In that sense, the signal value - trying to change the narrative - cannot be underestimated.

I’ll list a few interesting points here. They are chosen here simply because they are easier to contexutlize - I’m staying up too late now.

guide the society to have a proper understanding of the significant contributions and important role of the private economy, and have a correct view of the wealth obtained by actors in the private economy through legal and compliant operations. Firmly resist and promptly refute erroneous statements and actions that undermine or weaken the basic socialist economic system, negate, or downplay the private economy. Respond promptly to concerns and dispel doubts.

Translate: “Eat the rich” is an incorrect view. Slandering private companies or businesspeople as ruthless exploiters of laborers or workers will probably get censored.

Background: The most memorable example being Lenovo, China’s largest multinational PC maker and owner of Thinkpad, was grilled for months on social media over its sale of state assets, high executive pay and its foreign executives threatening national security, particularly by Li YU, aka Sima Nan.

Support private economic representatives to play a greater role in international economic activities and economic organizations.

Translate: Go to the World Economic Forum in Davos, B20, and APEC meetings. Background: “Unlike other countries, notably India and Saudi Arabia, which plastered buildings in Davos with advertisements for foreign investment, China has been low-key……” The New York Times reported in January 2023.

Support various levels of government departments in consulting outstanding entrepreneurs and fully leverage their role in formulating and evaluating policies, plans, and standards related to enterprises.

Translate: Consult businesses before drawing up policies.

Background: Businesses have complained of inconsistent, impactful policies that dropped with no prior warning.

Adhere to the principle of balancing education and punishment, implement enforcement methods such as notification, reminders, and persuasion, and do not impose administrative penalties on first-time offenders who have committed minor offenses and have promptly corrected them in accordance with the law.

Translate: Unless it’s necessary, do not impose administrative penalties. Cut the businesses a break when it’s possible.

Optimize the structure of representatives from the private economic sector, improve the selection mechanism, with the consideration of different regions, industries, and enterprises of different scales, appropriately prioritize strategic emerging industries, high-tech industries, advanced manufacturing industries, modern service industries, modern agriculture, and other fields. Standardize political arrangements, improve relevant comprehensive evaluation systems, prudently recommend outstanding private economic professionals as candidates for People's Congress representatives at all levels and members of the CPPCC, and make the All-China Federation of Industry and Commerce play a leading role as the main channel for orderly political participation of private economic professionals.

Translate: People from private enterprises in those industries will have a higher chance of having political titles. The All-China Federation of Industry and Commerce will play a greater role as the bridge between the State and the private sector.

中共中央 国务院关于促进民营经济发展壮大的意见

Opinions of the Central Committee of the Communist Party of China and the State Council on Promoting the Development and Growth of the Private Economy

(July 14, 2023)

The private economy is a driving force behind promoting the Chinese path to modernization. It is an important foundation for high-quality development and a significant force in achieving the two centenary goals. In order to promote the development and growth of the private economy, the following opinions are proposed:

I. General Requirements

Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, put the guiding principles from the 20th National Congress of the Communist Party of China (CPC)  into action, adhere to the underlying principle of pursuing progress while ensuring stability, fully implement the new development philosophy in a comprehensive, accurate, and all-round manner, accelerate the establishment of the new development paradigm, focus on promoting high-quality development, adhere to the direction of socialist market economy reform, adhere to the “two unwaverings", accelerate the building of a market-oriented, law-based, internationalized, and world-class business environment, optimize the development environment for the private economy, protect the property rights and rights of private entrepreneurs in accordance with the law, comprehensively build a close and clean relationship between government and business, ensure that various forms of ownership of the economy have equal access to production factors, fair participation in market competition, and equal legal protection, guide private enterprises to continuously improve the quality of development through their own reform and development, compliant operation, and transformation and upgrading, promote a bigger, better, and stronger private economy, make active contributions to the new journey of building a modern socialist country in an all-around way, shoulder greater responsibilities and play a greater role in achieving the great goal of national rejuvenation.

II. Continuously optimize the development environment for the private economy

Build a high-level socialist market economy system, continuously optimize a stable, fair, transparent, and predictable development environment, and fully stimulate the vitality of the private economy.

(1) Continuously remove barriers to market access. Local governments and central government departments must not set up or implicitly set up access barriers in the form of filing, registration, annual inspection, accreditation, certification, designation, or requiring the establishment of branch companies. Clean up and standardize the preconditions and approval criteria for administrative services such as administrative approval, permits, and filing, and the transfer of government service matters to intermediary service matters is prohibited. No enterprise shall be required to conduct self-testing, inspection, certification, identification, notarization, or provide proof before receiving government services outside laws or State Council regulations. Steadily carry out the evaluation of market access efficiency, establish a mechanism for responding to complaints and dealing with market access barriers, and improve the collection and reporting system for typical cases.

(2) Fully implement the fair competition policy system. Strengthen the foundational position of competition policy, improve the framework for fair competition and policy implementation mechanisms, and adhere to treating enterprises of all ownership types equally and impartially. Strengthen the enforcement of the Anti-Monopoly Law to prevent the abuse of administrative power to exclude or restrict competition. Franchise rights shall not be granted to operators without fair competition, and it is prohibited to restrict the operation, purchase, or use of goods and services provided by specific operators. Regularly release a negative list of market intervention behaviors and timely abolish policies that hinder a unified market and fair competition, such as local protection, market segmentation, or designated transactions. Optimize and improve the implementation of industrial policies, establish a catalog of preferential policies for enterprises, and promptly make it available to the public.

(3) Improve the social credit incentive and constraint mechanisms. Improve the credit information recording and sharing system, promote the comprehensive adoption of credit commitment systems, incorporating commitment and performance information into credit records. Leverage the role of credit incentive mechanism to enhance the sense of gain for enterprises with good credit. Improve the credit constraint mechanism and impose penalties on responsible parties in accordance with the list of measures for dishonesty in accordance with laws and regulations. Establish a sound credit restoration mechanism for rectified behavior and develop relevant management methods. Enhance the government's commitment to honest performance and performance mechanism, establish and improve the system for recording and penalizing governmental and state institutions’ breaches of contract, arrears of payments, and refusal to comply with judicial judgments, and include such dishonest information in the national credit information sharing platform.

(4) Improve the market-oriented restructuring mechanism. Encourage private enterprises to revitalize their stock assets for recovery funds. Accurately identify and categorize enterprises facing financial difficulties but still have development prospects and value, and actively apply bankruptcy reorganization and bankruptcy settlement procedures in accordance with market-oriented and law-based principles. Promote the revision of the Enterprise Bankruptcy Law and improve supporting systems. Optimize policies related to the conversion of individual household businesses (Ge Ti Hu) to enterprises and reduce the conversion costs.

III. Increase policy support for the private economy

Precisely formulate and implement various support policies, improve policy implementation, strengthen policy coordination, promptly respond to concerns and demands, and effectively solve practical difficulties.

(5). Improve the policy system for financing support. Strengthen the mechanism for the market-oriented sharing of financing risks involving banks, insurance companies, guarantors, securities firms, and other parties. Improve the credit rating and evaluation system for micro, small and medium-sized enterprises, and individual household businesses, enhance the collection of credit information related to enterprises, and promote service models such as "unsecured loans." (Xin Yi Dai).Support eligible micro, small and medium-sized enterprises to raise funds in the bond market, encourage eligible private enterprises to issue technology innovation corporate bonds, and promote the expansion of the coverage and enhancement of credit support for the special plan to support bond financing for private enterprises. Support eligible private enterprises in conducting initial public offerings (IPOs) and secondary financing.

(6). Improve the mechanism for the prevention and clearance of overdue payments. Strictly implement the "Regulations on the Payment of Funds to Guarantee the Payment of Small and Medium-sized Enterprises," improve the long-term mechanism for preventing and resolving overdue payments to small and medium-sized enterprises, and hold responsible persons accountable in accordance with laws and regulations. Government agencies, public institutions, and large enterprises shall not change internal personnel, fulfill internal payment processes, or refuse or delay payment to small and medium-sized enterprises and individual businesses in the absence of contractual provisions based on reasons such as awaiting project acceptance approval, final settlement audit, etc. Establish a regular disclosure, counseling, and guidance system for overdue payments. Strengthen the  information disclosure of commercial bills and improve the credit constraint mechanisms in the bills market. Enhance the complaint handling and credit supervision mechanisms related to overdue payments, and increase the exposure of cases involving malicious overdue payments. Improve the regular coordination mechanism between the clearance and audit, inspection, and oversight systems for overdue payments.

(7) Strengthen the assurance of workforce supply and employment demands. Establish smooth channels for workforce mobility to flow into private enterprises, and improve policies and mechanisms related to personnel management, archives/Dang’an management, and social security continuity. Enhance the evaluation method for state-recognized professional titles in private enterprises, establish unimpeded channels for professional titles evaluations, and refine market-oriented evaluation standards for professional titles. Set up platforms for the integration of employment information between private enterprises, individual business households, and job seekers. Promote school-business cooperation and the integration between industry and education. Advance the construction of the workforce in the private economy, optimizing the environment for career development. Strengthen the protection of the rights of flexible and new forms of employment workers, and leverage the role of platform enterprises in expanding employment opportunities.

(8) Improve the mechanism for direct and efficient access to support policies. Make use of the function of direct funding mechanism, promote the efficient access to funds related to enterprises, and increase the transparency of subsidy funds related to enterprises to accept public supervision. Establish a mechanism for the "application-free access" to support policies for micro, small and medium-sized enterprises and self-employed businesses, and promote an informed commitment system. Relevant departments shall no longer require repeated submission of materials that can be extracted from public data platforms.

(9) Strengthen policy communication and expectation guidance. Fulfill the adjustment procedures of enterprise-related policies in accordance with laws and regulations and set reasonable transition periods based on actual conditions. Strengthen direct release and interpretation of policies for private enterprises and individual businesses. Support various levels of government departments in consulting outstanding entrepreneurs and fully leverage their role in formulating and evaluating policies, plans, and standards related to enterprises.

IV. Strengthen the rule-of-law guarantee for the development of the private economy

Improve the rule-of-law environment that provides equal protection for enterprises of all types of ownership and create favorable and stable expectations for the development of the private economy.

(10) Protect property rights of private enterprises and rights of entrepreneurs in accordance with the law. Prevent and rectify the intervention in economic disputes through administrative or criminal law means, as well as local protectionism in law enforcement and judicial process. Further regulate compulsory measures involving property rights to avoid excessive seizure, attachment, freezing, and confiscation beyond authorization, scope, amount, or time limits. For operating assets involved in cases that are not suitable for seizure, attachment, or freezing, while ensuring normal investigation activities, the relevant parties may continue to use them reasonably and take necessary measures for value preservation and custody to minimize the impact of investigation on normal work and lawful production and operation. Improve the mechanisms for complaint, retrial, and other matters related to business-related cases, and establish effective mechanisms to prevent and rectify wrongful cases.

(11) Establish a mechanism that prevents and combats corruption at the source in private enterprises. Issue judicial interpretations to strengthen the punishment for corruption acts such as embezzlement of assets, misappropriation of funds, and bribery committed by employees of private enterprises. Improve the mechanism for the recovery and disposal of assets involved in cases. Deepen compliance reform in companies involved in corruption, and promote compliance and lawful operations of private enterprises. Strengthen the management of corruption at the source in private enterprises and guide private enterprises to establish strict auditing systems and accounting systems. Give full play to the role of CPC organizations in private enterprises, promote legal education within enterprises, and create an atmosphere of integrity and honesty. Establish a multi-party participation mechanism for combating corruption in private enterprises. Promote the construction of clean private enterprises under the rule of law.

(12) Continuously improve the intellectual property protection system. Strengthen the protection of original innovation for private micro, small, and medium-sized enterprises. Strictly implement the system of punitive damages for intellectual property infringement and the system of preservative behavior. Establish a rapid handling mechanism for intellectual property infringement and civil administrative enforcement, and improve the cross-regional jurisdiction system of intellectual property courts. Study and improve the protection measures for innovative achievements in business improvement, cultural creativity, and other fields, and severely crack down on unfair competition such as infringement of trade secrets and counterfeiting, in addition to illegal acts such as malicious registration of trademarks. Increase the criminal punishment for intellectual property infringement and improve the guidance mechanism for handling overseas intellectual property disputes.

(13) Improve the law enforcement system for supervision. Strengthen the standardization and normalization of supervision, publicly disclose supervision standards and rules in accordance with the law, and enhance the stability and predictability of supervision systems and policies. Make supervision fairer, more standardized, and simpler. Prevent selective law enforcement and the style of regulation that places the burden of proof on enterprises. Encourage different administrative regions to jointly issue unified regulatory policies, regulations, and standard specifications, and carry out coordinated law enforcement. Adhere to the principle of balancing education and punishment, implement enforcement methods such as notification, reminders, and persuasion, and do not impose administrative penalties on first-time offenders who have committed minor offenses and have promptly corrected them in accordance with the law.

(14) Improve the long-term supervision mechanism for enterprise-related administrative charges. Continuously improve the system of listing enterprise-related administrative fees subject to government pricing, normalize public disclosure, and accept corporate and public supervision. Establish smooth channels for complaints and reports of enterprise-related irregular fees. Establish standardized procedures for sharing and transferring clues to problems among departments, and comprehensively implement joint disciplinary measures through market supervision, industry supervision, credit supervision, and other means. Publicly expose typical cases of irregular administrative fees on businesses.

V. Strive to promote high-quality development of the private economy

Guide private enterprises to practice the new development concept, deeply understand the existing shortcomings and challenges, transform development modes, adjust industrial structures, and shift growth drivers. Stick to the main business, strengthen the real economy, and consciously pursue the path of high-quality development.

(15) Guide the improvement of governance structures and management systems. Support and guide private enterprises in improving corporate governance structure, regulating shareholder behavior, strengthening internal supervision, achieving standardized governance, effective checks and balances, and operational compliance. Encourage eligible private enterprises to establish a modern corporate system with Chinese characteristics. Promote the separation of corporate property from the personal or family property of investors in accordance with the law and clarify the ownership structure of enterprises. Study and establish a risk assessment system and early warning mechanism to anticipate situations that could seriously impact business operations and potentially pose risks to social stability. Support private enterprises in strengthening risk prevention and management, guide the establishment of comprehensive risk management systems covering enterprise strategy, planning, investment and financing, market operations, and enhance awareness and capacity in quality management.

(16) Support the enhancement of technological innovation capabilities. Encourage private enterprises to increase research and development investment, engage in core technology  research and development in accordance with national strategic needs and industry trends, and actively undertake major national science and technology projects in accordance with regulations. Cultivate leading private technology enterprises in key industries, specialized and sophisticated small and medium-sized enterprises (SMEs) that produce new and unique products, and innovative industrial clusters of small and medium-sized enterprises. Increase the scale of government procurement of innovative products and utilize the insurance compensation mechanism for newly-developed technological equipment to support the application and update of innovative products by private enterprises. Promote collaborative innovation among enterprises of different ownerships and different sizes through joint research on common technologies. Improve the management systems and mechanisms for higher education institutions and research institutes, mobilize their support for innovation and development of private micro, small, and medium-sized enterprises, and support private enterprises in establishing innovation platforms such as technology research and development centers, industrial research institutes, pilot demonstration bases, engineering research centers, and manufacturing innovation centers through cooperation with research institutions. Support private enterprises in research into basic and cutting-edge technology and industrial application.

(17) Accelerate digital transformation and technological upgrading. Encourage private enterprises to conduct research and development of common digital  technologies, participate in the investment and construction of new infrastructure such as data centers and industrial internet, support the digital transformation of small and medium-sized enterprises and promote the application of low-cost, modular intelligent manufacturing equipment and systems. Guide private enterprises in actively advancing standardized construction and improving product quality. Support private enterprises in green and low-carbon transformation of production processes, equipment, and technologies, accelerate the development of flexible manufacturing, enhance emergency production and capacity conversion capabilities, and improve the resilience of industrial chains.

(18) Encourage the improvement of international competitiveness. Support private enterprises to base themselves on their own reality and extend their focus to the development of core components and high-end manufactured products, strengthen brand building, and enhance the reputation of "Made in China". Encourage private enterprises to expand overseas businesses, actively participate in the Belt and Road Initiative, and orderly participate in overseas projects while complying with local laws and regulations and fulfilling social responsibilities. Provide better guidance and support to private enterprises in preventing and addressing external challenges such as trade protectionism, unilateralism, and long-arm jurisdiction. Strengthen inter-departmental coordination and cooperation to establish a collaborative mechanism for preventing and mitigating risks related to the personal safety and property of private sector entrepreneurs overseas.

(19) Support participation in major national strategies. Encourage private enterprises to voluntarily promote common prosperity through expanding employment opportunities, improving wage distribution systems, etc., and increase the level of employee participation in the benefits of enterprise development. Support private enterprises to invest in labor-intensive manufacturing, equipment manufacturing, and ecological industries in central -western regions and the northeastern region, accelerate the development of former revolutionary base areas and ethnic minority areas, and contribute to the development of border areas. Support the participation of private enterprises in advancing carbon peak and carbon neutrality, providing decarbonization technologies and services, increasing investment in renewable energy generation and energy storage, and participating in carbon emission permits and energy-use permits trading. Support private enterprises in participating in rural revitalization, promote the development of modern farming and animal husbandry by new agricultural entities and social service organizations, develop high quality modern agricultural processing industries, develop modern agricultural service industries based on local conditions, and strengthen featured industries such as leisure agriculture and rural tourism, actively participating in the "ten thousand enterprises to revitalize ten thousand villages" (万企兴万村) initiative. Support private enterprises in participating in the comprehensive strengthening of infrastructure construction, guide private capital to participate in major projects and fill gaps in areas such as new-type urbanization, transportation, and water conservancy, and other areas aimed at addressing deficiencies.

(20) Regulate and guide the healthy development of private capital in accordance with the law. Perfect the legal system that regulates and guides the healthy development of private capital, providing a 'traffic light' system for capitals. Improve the rules and regulations for capitals’ behavior and publicize a series of 'green light' investment cases. Enhance the effectiveness of governance over capital, improve the capacity and modernization of capital supervision systems. Guide the platform economy to develop in an open, innovative, and empowering direction, addressing development shortcomings and weaknesses. Support platform enterprises to excel in creating employment, expanding consumption, and competing internationally, to promote the standardized, healthy, and sustainable development of the platform economy. Encourage private enterprises to focus on strengthening and optimizing their core businesses to enhance their core competitiveness.

VI. Promote the healthy growth of people in private economy 

Comprehensively implement the guidelines of trust, unity, service, guidance, and educate, stabilize, inspire, and unite people in the private economy, and guide them to manifest entrepreneurial spirit.

(21) Strengthen the mechanism for ideological and political development of private sector entrepreneurs. Actively and prudently carry out the recruitment of CPC members among advanced individuals in the private economic sector. Conduct in-depth education on ideals and beliefs and socialist core values. Educate and guide CPC members among private economic professionals to strengthen their ideals and beliefs, play a pioneering and exemplary role, and resolutely implement the CPC theories, directions, principles, and policies. Actively explore and innovate ways of CPC-building in the private economic sector.

(22) Cultivate and promote the entrepreneurial spirit. Guide private entrepreneurs to enhance their patriotism, courage in innovation, integrity, adherence to the law, social responsibility, and broaden their international horizons. Encourage them to take risks, be proactive, and continuously stimulate innovative vitality and creative potential. Leverage the exemplary role of outstanding entrepreneurs, increase recognition and awards according to regulations, actively foster the entrepreneurial spirit in the private sector, and promptly summarize and promote the personal growth experiences of entrepreneurs that embody Chinese characteristics and align with the trends of the times.

(23) Strengthen the teambuilding of representatives from the private economic sector. Optimize the structure of representatives from the private economic sector, improve the selection mechanism, with the consideration of different regions, industries, and enterprises of different scales, appropriately prioritize strategic emerging industries, high-tech industries, advanced manufacturing industries, modern service industries, modern agriculture, and other fields. Standardize political arrangements, improve relevant comprehensive evaluation systems, prudently recommend outstanding private economic professionals as candidates for people's congress representatives at all levels and members of the CPPCC, and make the All-China Federation of Industry and Commerce play a leading role as the main channel for orderly political participation of private economic professionals. Support private economic representatives to play a greater role in international economic activities and economic organizations.

(24) Improve the education and training system for private sector entrepreneurs. Enhance the mechanism for specialized training and study sessions for private sector entrepreneurs, and further increase the efforts in education and training. Enhance the training system for small and medium-sized private enterprises, building a multi-field and multi-layered training system that combines online and offline methods in multiple fields and levels. Strengthen the hierarchical training for private sector entrepreneurs, establish and improve mentorship and guidance systems for the younger generation of private sector entrepreneurs, and promote a smooth transition and orderly succession of businesses.

(25) Comprehensively cultivate the close and clean relationship between government and business. To concretely establish such a government-business relationship, both CPC & government officials and private entrepreneurs must work together to create this two-way relationship. Leaders at all levels should engage and interact with private entrepreneurs in an open and sincere manner, taking proactive measures and providing front-line services. They should help address the difficulties faced by private enterprises and entrepreneurs, handle practical matters in accordance with the law and regulations, adhere to the bottom line in their interactions, guard against corruption risks, and strike a balance between being amicable and resolute, and maintain integrity while being effective. Private entrepreneurs should actively communicate and exchange ideas with CPC committees, governments, and relevant departments at all levels, speak truthfully and candidly, offer constructive suggestions, maintain integrity, follow the right path, operate their businesses in accordance with laws and regulations, and conduct their businesses openly and with integrity.

VII. Continuously foster a social atmosphere that cares for and promotes the development and growth of the private economy

Guide and support the private economy in fulfilling its social responsibilities, showcasing its positive image, and engaging in better interactions with public opinion, creating a good social atmosphere that recognizes, respects, and actively cares for the private economy.

(26) Guide the whole society to objectively and correctly understand the private economy and actors of the private economy. Strengthen theoretical research and publicity, adhere to seeking truth from facts, remain objective and impartial, properly grasp the correct direction of public opinion, guide the society to have a proper understanding of the significant contributions and important role of the private economy, and have a correct view of the wealth obtained by actors in the private economy through legal and compliant operations. Firmly resist and promptly refute erroneous statements and actions that undermine or weaken the basic socialist economic system, negate, or downplay the private economy. Respond promptly to concerns and dispel doubts.

(27) Cultivate a public opinion environment that respects innovation and entrepreneurship in the private economy. Strengthen the promotion of outstanding entrepreneurs' achievement and the building of world-class enterprises, consolidate the positive energy that advocates innovation and entrepreneurship, and enhance entrepreneurs’ sense of honour and social value. Create a public opinion environment and zeitgeist that encourages innovation and tolerates failures. A, afford understanding, tolerance, and aid to the mistakes and failures that may occur in the legal business operations of actors in the private economy. Establish interdepartmental collaboration mechanisms, strictly crack down, in accordance with the law, on extortion and other acts using negative public opinion as a threat, improve relevant reporting mechanisms, and reduce the costs of enterprise in safeguarding their rights.

(28) Support private enterprises in better fulfilling their social responsibilities. Educate and guide private enterprises to consciously assume the social responsibility of promoting common prosperity, actively build harmonious labor relations within their businesses, promote a shared community among all employees, and ensure that the fruits of business development more fairly benefit among all employees. Encourage and guide those engaged in the private economy to become practical doers of development and contributors to the New Era, realise personal value at a higher level, demonstrate a good image of abiding by laws and public ethics, and fulfill their responsibilities and obligations and be philanthropic while accumulating wealth. Explore to establish a social responsibility evaluation system and incentive mechanisms for private enterprises, guide private enterprises to actively participate in the Guangcai Program and charitable activities, engage in emergency relief, and support national defense construction.

VIII. Strengthen organisation and implementation

(29) Adhere to and strengthen the leadership of the CPC. Adhere to the centralised and unified leadership of the CPC Central Committee over the private economy, and implement CPC leadership in all aspects and throughout the entire process of work. Adhere to the correct political direction, establish and improve mechanisms for the development of the private economy and private enterprises, clarify and fulfill departmental responsibilities, strengthen coordination and cooperation, and enhance coordination between the central and local governments. Support the All-China Federation of Industry and Commerce in playing a better role in promoting the healthy development of the private economy and the healthy growth of those engaged in the private economy.

(30) Improve and implement incentive and restraint mechanisms. Strengthen the implementation of existing policies, focus on promoting the implementation and refinement of policies related to promoting the development and expansion of the private economy, protecting property rights, and promoting entrepreneurship, and improve the evaluation and supervision system. Establish a sound platform for complaints by the private sector and safeguarding the rights of the private economy, improve the confidentiality systems for complaints and reports, procedures involved with treating the complaints, and supervision and assessment mechanisms.

(31) Timely summarize (good experiences) and assess. Conduct special assessments and reviews of policies related to the private economy in consistency assessments with macro policy orientations. Improve the evaluation system for China's business environment, and establish a third-party evaluation mechanism for policy implementation effects. Strengthen statistical monitoring and assessment of the private economy, and when necessary, study and formulate unified and standardized indexes for the development of the private economy. Continuously innovate and develop the "Jinjiang experience," promptly summarize and promote good experiences and practices from various local regions, and in appropriate forms solidify effective experiences and practices.