An article titled “The private economy should be phased out as it has fulfilled its role in supporting the development of public economy” has gone viral and triggered heated discussion online. Commentator Liu Jincai, writing at
The Beijing News, slams it as ridiculous and says the best way to undermine it is to engage in a more courageous platform of reform and opening-up.
Historically, developing the private economy was an inevitable choice resulting from experiments, some successes and some failures, of the Chinese leadership over a long period and with various costs, Liu says. The State now sees the private economy as an essential part of the socialist market economy.
Since President Xi Jinping, who has reiterated support for developing the private economy, took the leadership, the country has introduced favorable policies. Liu says this is not only designed to create a better business environment, but also to shore up entrepreneurs’ confidence in the system.
The private economy gives full play to the entrepreneurship of the Chinese people and can complement the development of the public economy, he says. If it were shut down, a highly likely result would be inefficient resource allocation and adverse impacts throughout the entire economy.
Old Version
