SOURCE / ECONOMY
Senior official urges repeal of unequal terms for private enterprises
Published: Nov 12, 2019 08:58 PM

Entrepreneurs from China's private sector visit the Supreme People's Procuratorate in Beijing on Monday. Photo: VCG


China's top procuratorate said it will repeal unequal terms affecting private enterprises under the law, a move that could promote the private sector's growth by better protecting companies' legitimate rights, an analyst said on Tuesday.

A total of 57 entrepreneurs from the private sector attended the "Open Day" event on Monday, which focused on how to better serve and guarantee the development of the private economy. The event was organized by the Supreme People's Procuratorate, the nation's highest body responsible for prosecution and investigation, business outlet ce.cn reported. 

The agency will "continue to comprehensively review judicial interpretations and abolish unequal terms concerning private enterprises in accordance with the law," according to the report, citing Zhang Jun, the procurator-general of the Supreme People's Procuratorate. 

"This [move] will provide institutional protection for private enterprises' legitimate rights in production and innovation," Tian Yun, vice director of the Beijing Economic Operation Association, told the Global Times Tuesday.

The supreme procuratorate's move puts into practice a decision by the Fourth Plenary Session of the 19th Central Committee of the Communist Party of China, which emphasized the importance of accelerating the development of the private sector, Tian noted.

According to the National Bureau of Statistics, private companies accounted for 79.4 percent of all Chinese enterprises in 2017. The private sector contributes more than 50 percent of tax revenue, 60 percent of GDP, 70 percent of technological innovation, 80 percent of urban employment and 90 percent of new jobs and new companies.

"The private sector is the main driver of China's economic growth, so protecting the private economy is promoting China's sustainable development, which offers a guarantee for China's goals including industrial upgrading and achieving modernization by 2035," Tian said.

Tian said that the top agency should announce a detailed timetable that clarifies how to redress incorrect verdicts and eradicate unreasonable terms.

"The first step is to re-examine cases involving unjust, false or wrong charges and reverse those verdicts. The second is to gradually clean up unfair, unreasonable laws and regulations, and then submit the result for public review," Tian suggested.

"Only by doing so, could the sustainable development of the private sector be maintained," Tian said.