China will strengthen private businesses
The Chinese economy is suffering from a real estate crisis, unemployment uncertainty, and consumer stagnation. The government in Beijing plans to counteract with a package of measures, providing more opportunities for private businesses.
China will push the economy forward with a package of measures, also offering more opportunities for private enterprises. For instance, the political system is expected to be improved to support financing for non-state firms. This comes from a 60-point document adopted after the latest closed-door meeting of the Central Committee of the ruling Communist Party.
The plans offer little detail on implementation. Markets are supposed to play a decisive role in resource allocation. According to the plans, authorities should optimize the structure of state-owned enterprises, clarify their key investment areas, and focus on key sectors related to national security and the national economy. The Beijing government intends to work on laws to improve conditions for the private sector.
Furthermore, there will be tax, land, and financial reforms. Other political goals include promoting affordable housing, improving job opportunities for young people, and improving living standards for the elderly. Like most such documents, it was not explained in the paper how the Chinese leadership intends to achieve these goals. Many of these goals would require contradictory political actions, as party officials acknowledged on Friday.
The Chinese economy is suffering from a real estate crisis, unemployment uncertainty, and consumer stagnation. China's Gross Domestic Product (GDP), the second largest economy in the world after the US, grew by 4.7% from April to June, the slowest increase since over a year ago.
The package of measures announced by the Chinese government aims to revitalize the struggling economy, particularly in the real estate sector and job market. To foster growth, China will strengthen its support for private businesses, a move that could significantly impact its economy.
