
The private economy, an important driver of economic growth, has been encountering some problems in recent years such as financing difficulties.
Governments at different levels are issuing supportive policies for private businesses. Zhejiang Province in east China is an example. The province boasts the most vibrant private economy in China and its three cities of Hangzhou, Wenzhou and Ningbo have the most advanced private economy in the country.
Governments of the three cities have taken multiple measures to support the private economy by creating a favorable environment for private businesses. Hangzhou published three documents in November 2018 announcing measures to create a world-class business environment and promote high quality development of industrial platforms and the manufacturing industry. Wenzhou started a festival in December 2018 as a tribute to private entrepreneurs.
The cities have also streamlined procedures for issuing business licenses and approving projects and are trying to help private enterprises solve their development problems. For instance, to help private businesses attract talent, Ningbo is working with higher learning institutions such as the Beijing-based Beihang University to build 10 research institutes. They will cultivate talent and provide intelligent support for private businesses.
To address funding difficulties, Wenzhou's banking sector has reduced loan restrictions for private businesses. The tolerance rate for small and micro enterprises' bad loans has been set at 2 percentage points higher than that for average loans.
(This is an edited excerpt of an article originally published in Oriental Outlook on March 21)