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The private sector of the economy still does not feel free to
develop although this sector has become an important force to
reckon with in the Chinese economy thanks to the unswerving
encouragement, support and guidance from the central
authorities.
The remarks were made by Yin Mingshan, member of the National
Committee of the Chinese People's Political Consultative Conference
(CPPCC) attending the on-going annual session.
It was reported that there are about 20,000 billion yuan
non-governmental capital lying idle, failing to find its way into
investment areas. It is not that the non-governmental capital lacks
investment desire, but it is the institutional factor that
obstructs it from entering the investment area as the threshold is
too high, according some other CPPCC members.
The biggest difficulty for the private sector is capital
expansion, Yin said, because the threshold for the access by the
private sector is too high, just as private business owners
complained "private capital is welcome to non-lucrative sectors,
but barred from lucrative sectors."
In Chongqing, southwest China, private companies contributed to
42.3 percent of city's GDP in 2002, but the bank loans they got
only accounted for eight percent of total.
The CPPCC members all called for a sound institutional
environment for the development of the private sector and unified
market access standards for all sectors of the economy. They also
called for a review of the outdated laws and regulations.
The CPPCC members also attacked some authorities at the local
levels for their arbitrariness in the enforcement of administrative
laws and for their extortion, which have made it very unfavorable
for the development of the private sector.
The policies of the central government are good but the policies
have not been implemented in spirit and to the letter, they
said.
(Xinhua News Agency March 8, 2004)
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