Recently, the "Opinions of the Central Committee of the Communist Party of China and the State Council on Promoting the Development and Growth of Private Economy" (hereinafter referred to as the "Opinions") were heavily released, proposing 31 policy measures to continuously optimize the development environment of private economy and increase policy support for private economy, injecting a "booster" into the development of China's private economy. The Opinions first mentioned that "private economy is the new force to promote Chinese path to modernization", which is determined by the positive role played by private economy in China's economic development. What impact will policies have on the market? Jingtai helps you interpret.

01 | Creating a Fair Competition Environment In terms of continuously optimizing the development environment of the private economy, the Opinion mentions that building a high-level socialist market economy system, continuously optimizing a stable, fair, transparent and predictable development environment, and fully stimulating the vitality of the private economy. The Opinion first points out that market access barriers will continue to be broken down. Each region and department shall not set or indirectly set access barriers in the form of filing, registration, annual inspection, recognition, certification, designation, or requirement to establish branches. The prerequisite and approval standards for clearing permits, filing, and other government service matters shall not be transferred to intermediary service matters. Without legal and regulatory basis, enterprises shall not be required to conduct self testing, inspection, certification, appraisal, notarization, or provide proof before government service matters. Steadily carry out market access efficiency evaluation, establish a complaint and response mechanism for market access barriers, and improve the system for collecting and reporting typical cases. The Opinion requires the comprehensive implementation of the fair competition policy system. Strengthen the fundamental position of competition policy, improve the framework of fair competition system and policy implementation mechanism, and adhere to the principle of treating all types of ownership enterprises equally and equally. Strengthen anti monopoly law enforcement to prevent the abuse of administrative power and eliminate competition restrictions. Without fair competition, operators shall not be granted franchise rights, and shall not limit the operation, purchase, or use of goods and services provided by specific operators. Regularly launch a negative list of market intervention behaviors, and promptly clean up and abolish policies that hinder unified markets and fair competition, such as local protection, market segmentation, and designated transactions. Optimize and improve the implementation methods of industrial policies, establish a list of preferential policies for enterprises, and promptly disclose it to the public.

02 | Protecting the rights and interests of private entrepreneurs and promoting the development of the private economy cannot do without legal protection. In response, the Opinion mentioned that a sound legal environment for equal protection of various forms of ownership in the economy should be established to create good and stable expectations for the development of the private economy. Require the legal protection of the property rights of private enterprises and the rights and interests of entrepreneurs. Prevent and correct the use of administrative or criminal means to intervene in economic disputes, as well as local protectionism in law enforcement and justice. For private enterprises, the rule of law is the best business environment. "An Lijia, Vice President of the All China Federation of Industry and Commerce, pointed out at the aforementioned press conference that in building a good rule of law environment, safeguarding the property rights of private enterprises and the legitimate rights and interests of entrepreneurs, The next step will focus on implementing the five "integrations", including "promoting equal protection of property rights and optimizing the legal environment". Property rights protection is the key to stimulating market vitality and also one of the cornerstones of market economy development. Economic disputes are a normal phenomenon accompanying market development. As long as law enforcement and justice operate normally on the track of the rule of law, it will not affect the healthy operation of market mechanisms and the confidence of enterprises in investment. The Opinion also mentions improving the regulatory and law enforcement system. Strengthen the construction of regulatory standardization and standardization, publicly disclose regulatory standards and rules in accordance with the law, and enhance the stability and predictability of regulatory systems and policies. Improve regulatory fairness, standardization, and simplicity, eliminate selective law enforcement, and allow enterprises to self prove their innocence through supervision.

03 | Responding to the concerns of private enterprises and boosting confidence. The opinions on promoting the development and growth of the private economy are problem oriented, and many specific operational details have been touched upon. In creating a first-class business environment, it is necessary to improve regulatory fairness, standardization, and simplicity, eliminate selective law enforcement, and allow enterprises to self prove their innocence through supervision. The biggest highlight of this time is the special emphasis on the fundamental position of competition policy. Because everyone is equal before the law, we often say that private enterprises, state-owned enterprises, and foreign investment are treated equally. However, in reality, private enterprises may also feel that there are certain levels of unfair and unfair treatment towards private enterprises in the actual implementation process. This time, it is also proposed to improve the framework of the fair competition system and policy implementation mechanism, and adhere to the principle of treating all types of ownership enterprises equally and equally.

04 | How to view the development potential of private economy? The development potential of the private economy is visible to everyone, and the trend of sustainable and stable development of China's economy has not changed. There are several main reasons: firstly, urbanization still has a "second half". At present, our urbanization rate has just reached 65%, and it is expected to reach around 75% by 2035. Secondly, digital transformation has also caught up with a window, and the global digital economy and digital technology applications are poised to emerge. The transformation and upgrading of traditional industries and the continuous innovation of consumption scenarios not only drive new investment, but also promote new consumption. In addition, China's aging society has arrived, and from the supply side, there are still shortcomings in the related elderly care and health service system. In the future, it is expected to increase investment in this area, improve the supply of elderly care and health services, and create new business opportunities. Whether it's investment or consumption, the potential for the future is enormous. The "Opinions" issued by the central government this time require the complete, accurate, and comprehensive implementation of the new development concept, accelerating the construction of a new development pattern, focusing on promoting high-quality development, adhering to the direction of socialist market economy reform, especially adhering to the repeatedly emphasized "two unwavering", accelerating the creation of a market-oriented, legal, and international first-class business environment, and optimizing the development environment of the private economy. Against this backdrop, the past six months have also laid a certain foundation for future development. Whether in the second half of the year or next year, private entrepreneurs can seize the opportunity and seize new business opportunities through the 'east wind' of policies, playing a role in driving employment, increasing income, and promoting consumption.