Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

China's Liu He assures business of support, amid regulatory crackdown

EconomySep 06, 2021 06:56AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. Chinese Vice Premier Liu He attends the closing session of the Chinese People's Political Consultative Conference (CPPCC) at the Great Hall of the People in Beijing, China May 27, 2020. REUTERS/Thomas Peter/Pool/Files

BEIJING (Reuters) - China's Vice Premier Liu He vowed the government would keep supporting the private sector amid growing concern a regulatory crackdown on a wide range of industries was hurting businesses.

Liu said, "guidelines and policies for supporting the private economy have not changed... and will not change in the future," according to a report from Xinhua news agency.

He was speaking via video at a forum on Monday on the digital economy held in China's northern province of Hebei.

Liu appeared to be signalling reassurance to businesses during a crackdown on a range of industries, which has roiled markets and left startups and decades-old firms operating in an uncertain environment in the world's second-largest economy.

The private economy contributes over 50% of tax revenue, over 60% of GDP and 80% of urban employment in China, said Liu.

"The Chinese government realises that no matter how tough they are on regulatory changes, they realise they need the inflows into the Chinese market to help support their economy," said Louis Tse, managing director of Wealthy Securities in Hong Kong.

"There has been a clearing of the air and people have calmed down, the buying has resumed especially in the A-share market," he said, adding that extra details regarding the establishment of the Beijing Stock Exchange had also helped boost investor sentiment.

Also on Monday, the head of the market regulator repeated a government promise to support both the private and public sectors, and also said the "transparency and predictability" of policies should be increased.

President Xi Jinping has called for China to achieve "common prosperity", seeking to narrow a yawning wealth gap that threatens the country's economic ascent and the legitimacy of Communist Party rule.

But the implications of Xi's policy shift remain unclear, with public disagreements from commentators in China.

An opinion piece widely circulated in state media calling the crackdowns a "revolution" was attacked by Hu Xijin, the editor-in-chief of the Global Times, a tabloid published by the People's Daily. The reforms are about strengthening regulation and improving social governance, Hu said.

In August, a Communist Party official said that common prosperity does not mean "killing the rich to help the poor".

China has said overly high incomes should be "adjusted", and firms encouraged to help society. Several tech industry heavyweights have recently announced major charitable donations.

At a news conference in Beijing on Monday, Zhang Gong, head of China's market regulator, said China would continue a policy of "unwavering" support for both the public and private economies, while preventing the "disorderly expansion of capital" and monopolistic behaviours.

"There is an urgent need to coordinate and grasp the relationship between development and security, efficiency and fairness, vitality and order," he said.

China's "platform economy" - dominated by digital heavyweights - has improved resource allocation and innovation, but its expansion also brings risks to fair competition and data security, he said.

China's Liu He assures business of support, amid regulatory crackdown

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
IceIce Baby
IceIceBaby Sep 06, 2021 2:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
He "says". But what does he "do"?
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email