To push forward the development of the private economy, it is essential to building a suitable environment with corresponding measures.

Fair competition is the key for private economic development. The government should expand market access and abolish policy documents that violate market rules. Private enterprises ought to be encouraged to participate in the restructuring of state-owned companies, assets and resources in various ways such as asset acquisition.

Operational costs can be a burden for private enterprises seeking to develop. Therefore, financial agencies and government should play a role. Businesses should be taking advantage of government guide funds, they should also incentivize those seeking finance, and standardize the whole service. By building a financing guarantee system and establishing cooperation between banks and tax administrations, enterprises with a perfect credit record will have less pressure from corporate loans.

At the same time; the implementation of policies should be accelerated to relief the tax burden for enterprises. Large-scale tax cuts have been clearly implemented at a national level. It is necessary to put relevant policies into practice, especially with regards to promoting a reduction of value-added tax and implementing inclusive taxation on small and micro enterprises and technology-based startups.

Recent policies have brought practical benefits for the private business in reducing business costs and optimizing the business environment. However, cases reflecting problems should be studied, and governments should commit to solutions quickly.

(This is an edited excerpt of an article originally published in People's Daily on February 25)