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A top official stressed that the central government would stick to its policy of encouraging the development of the private economy.

 

Speaking at a meeting of entrepreneurs and representatives of some of the country's well-known private companies, Liu Yandong, minister of the United Front Work Department of the Central Committee of the Communist Party of China, said the country "is determined" to develop the private economy, the China Business News reported.

 

She hoped owners of private companies do not worry about a backlash from the central government's policies.

 

"We don't advocate debate; it is better to leave the answer to practice and history," she said.

 

A legal argument was stirred up earlier in the year about "original sin", after some owners of companies got rich allegedly through illegal means.

 

One of them, Gu Chujun, former chairman of Guangdong Kelon Electrical Holdings Co Ltd, was accused of faking the registered capital of the company during its fledging days.

 

No verdict has yet been reached in the case.

 

Hu Deping, Liu's deputy and vice-chairman of the All-China Federation of Industry & Commerce, said he objected to the phrase "original sin", the China Business News reported.

 

"Before specific related laws were instituted, there did not exist such a phrase as 'original sin'," Hu was quoted as saying.

 

He said illegal operations did exist, but it occurred during a special period, and the social reality at that time should be taken into account.

 

The remarks led to a heated debate.

 

Hu pointed out that there was no law at the time allowing investigation of such cases.

 

And in an annual meeting with local private owners this month, Wang Yang, Party secretary of the Chongqing Municipality, promised to "be lenient with the 'irregularity' of private companies during their early days."

 

"Like anything new, the 'irregularity' of private companies during their fledging state is a 'birthmark' they are born with and where their vitality lies," Wang was quoted as saying at the time.

 

Hu said society believes "all private companies have problems that should be dug out."

 

"If this was put into practice, it would cast an ominous shadow over China's economic reforms," he said.

 

(China Daily December 29, 2006)