China curbs ‘excessive’ law enforcement in quest to quell private sector doubts

Law enforcement practices that have raised the hackles of private businesses in China coming under fire from top officials

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Chinese officials have pledged to rein in law enforcement practices which have cooled private sector confidence. Photo: AP

Published: 9:00am, 11 Oct 2024

China is cracking down on behaviours from law enforcement seen as detrimental to the ordinary function of private businesses, a crucial step in restoring confidence as the country embarks on a whole-of-government effort to ensure a steady, sustainable economic recovery.

Jurisdiction-breaking trips by officers to detain suspects, arbitrary fines and disparities in the punishments meted out to private and public entities have all been areas of frustration for China’s enterprises.

As Beijing attempts to rally the private sector to reverse an economic slump, analysts said, entrepreneurs are expecting action to go along with words before they consider rekindling their faith.

But those words are still being spoken – and louder than ever. In a Tuesday meeting on the economy, Premier Li Qiang told an assemblage of business leaders that Beijing would “resolutely root out” persistent problems like fines, inspections and forced closures to guarantee peace of mind.

“The key to stabilising the economy is to stabilise enterprises,” Li was quoted by state news agency Xinhua as saying. “We must do a good job in helping them tide over difficulties and ensure they can benefit from policies.”

On the same day, the National Development and Reform Commission (NDRC) – China’s top economic planner and an overseer of the private sector – pledged to improve the situation at a widely watched press conference.