Access to the financial markets should be broadened to expand the fundraising channels of private enterprises and tap into channels such as private banks, small-loan companies, venture capital, stock shares, and bonds. Relevant authorities should design special measures to help private enterprises at risk of defaulting on their stock-based loans and changing ownership and restore them to equilibrium. Local governments should be provided with guidance to grant the necessary financial aid to those private enterprises that contribute to the country's economic upgrading and have good prospects. On the condition that they take strict measures to prevent illegal fundraising and the loss of state assets, governments of provinces and equivalent administrative units and cities specially designated in the state plan can pool resources to establish policy-based funds and employ multiple means to assist local leading enterprises, major job providers, enterprises in strategic emerging industries, and other key private enterprises in difficulty. We should be keenly alert to debt chains, and rectify the misconduct of government departments and large enterprises that default on payments to private enterprises or abuse small enterprises by exploiting their position and strength.

The playing field should be leveled. Hidden restrictions and hindrances for private enterprises should be eliminated. An environment of fair play should be created in market access, administrative approvals, business operations, tenders and bids, and civil-military integration to give them more space to expand their business. Private enterprises are encouraged to participate in the reform of state-owned enterprises. Differential and selective industrial policies should be replaced by inclusive and functional ones. Policies that run counter to fair, open and transparent market rules should be abolished. Law enforcement must be reinforced to combat monopolies and unfair competition.

Any policy, no matter how well-intended, might have a potential downside, a discrepancy between expectations and practice, or a multiplying effect combination with other policies. We need to take account of all these factors to better implement our policies.

(Source: Extract from Xi Jinping's speech at a meeting on private enterprise, November 1, 2018.)

This episode is presented by Michael Wang.