China's private economy to thrive in better business environment

Yang Di (R) communicates with a customer at her coffee shop in Hangzhou, east China's Zhejiang province, May 17, 2019. [Photo/Xinhua]

China will further optimize its business environment to unleash the vitality of private firms and boost fair competition, according to an official document published Sunday.

Under the guideline jointly released by the Central Committee of the Communist Party of China and the State Council, more sectors will be opened up to private firms.

For instance, private firms will be encouraged to provide basic telecommunication services through equity participation, and engage in power generation and distribution as well as electricity selling in the form of controlling shareholders or through equity participation.

They may also enter the sectors of oil-gas exploration, development, refining and marketing as well as the construction of infrastructure facilities related to the storage and transmission pipelines for oil, natural gas and refined oil products.

Eligible private firms may engage in crude oil import and the export of refined oil products, said the guideline.

In addition, broader access are expected to be seen in the sectors of financial services, infrastructure and social undertakings.

To boost the development of private firms, the government will further ease the tax burden of private firms, and enhance the capability of financial institutions to serve private enterprises.

Private firms were also encouraged to go public or issue bonds, while regional equity market targeting private firms will get support.

The guideline also mentioned the optimization of legal environment, stressing the protection of private firms by law enforcement and justice departments as well as the protection of legal property of private enterprises and entrepreneurs.

It also encouraged private firms to improve corporate governance, enhance technical innovation and industrial upgrading, and participate in the implementation of major national strategies such as the Beijing-Tianjin-Hebei integrated development and the Yangtze River Economic Belt.