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A noted Chinese economist called for efforts to remove obstacles
in financing and heavy tax burdens in the development of the
private sector of the economy.
Speaking at a plenary meeting of the current session of the
CPPCC, the economist said that almost all midsize and small private
enterprises (MSEs) are short of funds and there are limited
channels for their financing.
Li Yining, who is a honorary vice-chairman of the China
Democratic League (CDL) and a vice-chairman of the Economic
Committee of the Chinese People's Political Consultative Conference
(CPPCC), said that some government departments focus their support
to large private enterprises to the ignorance of MSEs.
In addition, he noted, the general public also bias against the
non-public sector, often associating private entrepreneurs with
"greediness" and "unlawfulness", thus inciting hate for the
nourveau riche.
He suggested encouraging the development of small private banks
that will cover areas beyond the means of state-owned commercial
banks and acceleration of the pace of the construction of capital
market, including the growth board market for MSEs.
The economist appealed to the public to develop a correct
approach to private property and the rich.
He also proposed to review the new tax regime that came into
force in 1994, saying that some of the provisions have fallen
behind reality, with tax rates being too high.
(Xinhua News Agency March 8, 2004)
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