Fairer competition to further advance reform and opening-up

Source:Global Times Published: 2018/11/12 22:38:39

In the Double 11 shopping spree on Sunday, Alibaba set a record with sales hitting 213.5 billion yuan ($30.6 billion). The annual November 11 shopping holiday, the largest worldwide, has vividly demonstrated the market creativity of the Chinese public.

When it was first held in 2009, the shopping festival had sales of only 52 million yuan - a humble start to an event that would be globally renowned within just 10 years. This fact begs the question: What miracles could China's private companies create if the business environment gets better?

Recently, China's banking and insurance regulator vowed to step up credit support for private companies, with a goal of no less than 50 percent of new corporate loans going to private businesses in the next three years. This will create a fair environment for private, foreign and State-owned enterprises (SOEs), and mark an important first step to carrying out the central government's decision to promote private businesses.

Once fairer competition among SOEs, private and foreign sector companies becomes one of the underlying rules of China's economic governance, it will profoundly boost the overall economy and social development of China.

Meanwhile, as China continues its policy of opening up, there will be more inherent power to drive forward governance reform and China will embrace a wave of changes.

However, some people think this has no direct relation to their daily lives. Some may have fallen behind the times and even unconsciously oppose the effort of economic reform.

They will question whether the government will promote the private sector full-heartedly. But they fail to understand private business' contributions to tax base, GDP, technological innovation and employment, and that the competition from private companies will drive SOE reform management.

Others worry that the development of private businesses will cripple the foundation of China's political system. But they have misjudged the private sector in this regard. Over the last 40 years, the most developed coastal regions in China have boasted the most dynamic private business climates, yet they are not breaking off from socialism with Chinese characteristics.

Promoting reform and opening-up at a high level requires us to further free our mind. China has ideological and geopolitical competition with major Western countries and it's essential for us to deal with pressure and interference in a firm, rational and cool-minded manner. Opening wider is China's only choice.

China must build a strong social construct against complicated foreign relations. It needs a government-people interaction mechanism that is resilient and can manage all problems.

China's tangible development has shown the country's huge potential. Economic development, which underlies social confidence, needs a dynamic society under which the reform and opening-up can function. Yet this will enhance the complexity of social governance. But we have to do it since there is no way back.

We hereby call on the public not to underestimate the Chinese society's capability of adapting to problems and risks on the way forward. We have no fear since we have such a powerful country and the leadership of the Communist Party of China.

Newspaper headline: Fairer competition to further drive reform

Posted in: EDITORIAL

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