Shanghai's private economy 'an indispensable force'

A conference promoting the development of the private economy was held in Shanghai on Wednesday, at which Shanghai Party Secretary Li Qiang stressed that the private economy is an indispensable force in boosting the city's economic and social development.

"In all the historical stages of Shanghai's development, the private economy has always played an important role," Li said. "The status of the private economy is indisputable and its contribution to the city's economic growth is irreplaceable."

"There are increasingly more uncertainties for the economy at present, but what is certain is that there are also many opportunities for development ... Shanghai will certainly give full support to the development and growth of private enterprises," Li continued.

Li pointed out that it is necessary to create a better environment for development, innovation and entrepreneurship, introduce more powerful policies and measures, give full attention and support to enterprises, and conscientiously help companies solve their problems.

Shanghai recently released a series of measures to alleviate financing difficulties and reduce operation costs for smaller-sized private companies in response to the call of Chinese President Xi Jinping to support the private economy. For instance, a total of 30 billion yuan (US$4.35 billion) was offered by the Shanghai government to alleviate financing difficulties and lower costs for smaller-sized private companies.

Also, the city will provide better and more timely institutional support, and push forward reforms that involve "unreasonable" problems in terms of systems and mechanisms, to fully stimulate market vitality and creativity and boost the innovation of private enterprises.

Li also highlighted the importance of creating a market environment for fair competition, and offering sufficient space for the development of private enterprises. 

"We will further liberalize market access and ensure the equality of information, rules, and opportunities," he said.

Shanghai will press ahead with the reform of mixed ownership, promote cooperation between state-owned enterprises and private enterprises, and encourage private capital to participate in the mixed-ownership reform of SOEs, as well as in projects including major investment, transformation of achievements, and integration of assets, according to Li.