China unveils 5-year plan’s support for private sector, strengthening financial power

Beijing has officially announced the Politburo’s proposal for the nation’s 15th five-year plan, including language that signals strategic support for the private sector and an acceleration of China’s transformation into a financial power, easing market concerns about their positions in the economy over the next five years.

These messages were not mentioned in the communique published last week at the end of the fourth plenum of the Communist Party.

“The state should implement the Private Economy Promotion Law to ensure, through legal and institutional means, equal access to production factors, fair participation in market competition, and effective protection of legitimate rights and interests, so as to develop and expand the private economy,” the proposal said.

It vowed to “fully stimulate” the vitality of all types of business entities and encourage the joint development of various forms of ownership.

On accelerating the building of a strong financial nation, the proposal called for the development of science and technology finance, green finance, inclusive finance, pension finance and digital finance.

China should strengthen and modernise its financial system by enhancing regulations and coordination between central and local regulatory authorities, the proposal said while also calling for the acceleration of Shanghai’s development as an international financial centre.

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