China’s third plenum vows support for private sector, ‘stable’ climate for foreign firms

Observers and business owners welcome initiatives but some raise concerns about implementation at the local level

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A worker welds metal at a factory in Hangzhou in China’s eastern Zhejiang province in June. Photo: AFP

Vanessa Caiin Shanghai,William Zhengin Hong KongandMandy Zuoin Shanghai

Published: 11:00pm, 19 Jul 2024Updated: 12:35am, 20 Jul 2024

Better protection for private sector rights was among hundreds of reform goals laid out by China’s ruling Communist Party following a key, long-awaited policy meeting.

According to a senior economic official, the party also pledged further efforts to open up to foreign business, create a “transparent and stable” environment for them and protect intellectual property, as part of moves to lift confidence in the private sector.

Han Wenxiu, deputy director of the Central Financial and Economic Affairs Commission’s general office, said that it was “necessary to create a favourable environment and provide more opportunities for the development of the private sector” in China.

Observers and business owners have welcomed the expected initiatives, but some raised concerns about their implementation at the local level.

In a briefing in Beijing on Friday on the outcome of the third plenum, Han said China would improve the mechanism for private companies to take part in major national projects, support capable firms to lead major technological breakthroughs, and better regulate administrative inspections involving the private sector.

The four-day, closed-door plenary session ended on Thursday with a communique on a wide range of reform objectives to be completed over the next five years.

The resolution document, adopted by Central Committee members led by President Xi Jinping, refers to a wide range of policy areas related to “reforms” and “modernisation”, with a full statement expected next week.