China has decided to support private companies
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New Delhi: The growth of the economy in China in the second quarter has not been as expected. Exports have also fallen in June, more than 20 percent youth are unemployed, consumption has come down and foreign investment is not coming. Recently, US lawmakers alleged that American companies are being harassed in China. There is no such thing as a private company. For about three years, the Chinese government harassed private companies a lot. Due to this, the market cap of companies like Alibaba fell significantly. But in the changed situation, the Chinese government has started pulling strings on private companies. The companies which were once oppressed, have now become their refuge. 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. 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.action for three years
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. 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.
action for three years
This is in stark contrast to the policies of Chinese President Xi Jinping. He has been working for the last several years to rein in private companies. He said that private companies are very powerful and there is a need to curb them. From 2020, he started action against several companies including Alibaba. As a result, these companies stopped new recruitment and new investment. Unemployment in the country reached above 21 percent in June. There was a sharp decline in exports in June. Now the Chinese government wants to give a boost to the economy in every situation and for this it is putting strings on private companies.
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