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China Seeks Tip-Offs From Public on Obstacles to Private Sector

2023-08-03 11:45
China has unveiled its latest show of concern for the embattled private sector: asking citizens to call out
China Seeks Tip-Offs From Public on Obstacles to Private Sector

China has unveiled its latest show of concern for the embattled private sector: asking citizens to call out problematic behavior that is holding back entrepreneurs.

The government will collect tip-offs on everything from barriers to market entry for private firms, to unfair competition, local protectionism and arbitrary fines, the State Council said in a social media post. Beijing will ask local officials to intervene, or send in supervision teams for more serious cases, it said.

The appeal for public assistance comes as President Xi Jinping tries to promote a more welcoming environment for the private sector. Years of bruising crackdowns in areas including real estate, technology and education have wiped out billions of dollars in companies’ market value and diminished the wealth of the nation’s billionaires.

Those abrupt policy swings, along with an extended period of strict Covid controls, have fueled an erosion of confidence among private businesses that’s weighing on the world’s second-largest economy.

READ MORE: China Vows to Boost Private Economy, Protect Businesses

The government last month vowed to improve conditions for private businesses and treat them in the same way as state-owned enterprises, in a joint statement from the party’s Central Committee and the State Council. Authorities were also encouraged in that document to seek input from business-owners before drafting and evaluating policies.

Under the new tip-off program, citizens can also give suggestions on how to boost the private sector via a government-backed internet platform, according to the State Council announcement.

Government appeals to the public to report on behavior deemed particularly problematic is not unusual. The State Council launched a platform to collect tips about difficulties with the implementation of central government policies in 2019.

That has helped authorities root out some bad governance: last August, for example, the council received a tip-off officials in Guangdong had falsified evidence to fine trucks for suspected illegal dumping through the platform.

On Tuesday, the country’s powerful spy agency also launched an anti-espionage campaign on social media that included advice on how to identify and report on suspicious activities.

--With assistance from Rebecca Choong Wilkins and Xiao Zibang.