INSIGHT: GREATER CHINA - China Offers Unprecedented Support Package to Private Sector

Summary

AUGUST 1, 2023 INSIGHT: GREATER CHINA China Offers Unprecedented Support Package to Private Sector to Revitalize Economy THE TAKEAWAY • Creating a stable and equal business environment by strengthening the rule of law and the protection of As China faces the most challenging economic intellectual property rights; conditions in decades, Beijing’s latest 31-point plan to revitalize the private econo. [...] But the government’s goal to create a more corporate governance, innovative capacity, and digital “marketized, law-based, and internationally leading” transformation; business environment has left on-the-ground • Supporting the “healthy growth” of current and future challenges, particularly for the country’s many entrepreneurs and encouraging them to play a more cash-strapped and low-morale small. [...] to promote the development of the private sector In the days following the State Council announcement, and build a “bigger, better, and stronger” private China’s top economic planner, the National economy. [...] Large enterprises biggest winners of Beijing’s IMPLICATIONS friendlier attitude With lower-than-expected Q2 growth rates, record-high To many of the country’s largest corporations, the levels of youth unemployment, and concerningly-weak new revitalization measures signal that Beijing is consumer demand, China’s government faces pressure committed to returning to the pre-COVID status quo to revital. [...] Important questions linger created an online portal to collect feedback from the regarding the policies’ implementation, with some public on major challenges facing the private sector, on small business owners noting that authorities tend top of agreeing to meet with company representatives.