After China’s economy slipped, the government has come forward in support of private companies.
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The Chinese government left no stone unturned to crush the private sector for three years. Destroyed private companies. The biggest example of this is Jack Ma’s company Alibaba. Ma was once the apple of the eye of the Chinese government. But in 2020, the Chinese government felt that the power of private companies was increasing. Then what was left He took action against these companies. Innovation is over. In the year 2018, Chinese President Xi Jinping himself said that the private sector contributes 50% to the country’s tax revenue, 60% to output and 80% to urban employment.
restrictions on companies
But the Communist Party of China is always worried that the private sector may not become too strong. Xi is also of the same opinion. He has always been in favor of big and strong government companies. This is the reason why private companies did not get much attention during his tenure. The situation worsened after the pandemic. China’s leadership fell behind big private companies. Big industrialists were marginalized and strict restrictions were imposed on the industry. The wings of industrialists like Jack Ma have been completely clipped. Decided to divide his company into six pieces.
But now the Chinese government has realized that the country’s economy cannot progress without the private sector. In the changed situation, the Chinese government has started pulling strings on private companies. The companies which were once oppressed, have now taken refuge in them. The Chinese government has promised its full support to these companies. China’s ruling Communist Party and the State Council, ie the cabinet, have issued a policy document on a government media. It tells what steps are being taken to make private companies bigger, better and stronger.
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how will you win trust
It states that the private economy is the new force to promote Chinese-style modernization. It is an important foundation for high-quality development and part of China’s comprehensive campaign to build a socialist modern power. It states that a system will be created for fair competition in the country, barriers coming in the way of private companies will be removed and anti-monopoly laws will be implemented strongly. Experts also say that to give a boost to the economy, the Chinese government will have to win the trust of private companies.
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