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Private Sector of "Great Strategic Significance"

The State Council, China's cabinet, approved in principle guidelines for encouraging, supporting and guiding the development of the private sector of the economy at its executive meeting on Wednesday.

 

At the meeting, chaired by Premier Wen Jiabao, members agreed that it is imperative to create a better environment for the private sector to compete on an equal footing and free it from discrimination.

 

The decision lists a number of changes that should be made, including relaxing market access restrictions, providing more financial and taxation support and improving social and government services.

 

The written decision says, "The introduction of private capital into areas including infrastructure, monopolized industries and public utilities will be encouraged and supported."

 

It also explicitly states that the growth of the private sector is of "great strategic significance" to China's social and economic progress and modernization: "It is conducive to promoting economic prosperity in urban and rural areas, increasing fiscal revenue, expanding employment, improving people's lives, optimizing the economic structure and promoting economic growth."

 

(Xinhua News Agency January 12, 2004)

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