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Economist: Make It Easier for Private Sector to Develop

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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