Chinese Central Government Establishes Special Unit to Aid Private Economy Growth

The central government of China has approved the establishment of a special bureau within the National Development and Reform Commission (NDRC) to promote the development and growth of the private economy, according to the NDRC on September 4.

According to Cong Liang, the state planner's vice chairman, the bureau will be in charge of developing policies to promote the development of private companies, both domestically and in terms of their international competitiveness, as well as providing a troubleshooting function.

The private sector accounts for 80% of new urban jobs, but it has struggled to attract investment during the year's first half, with business owners also constrained by weak domestic demand.

"This is a powerful initiative... that fully reflects the great importance the Chinese Communist Party Central Committee attaches to the private economy," Zhang Shixin, a state planner, said.

Few analysts expect policymakers to implement aggressive stimulus measures due to concerns about debt and financial risk, with the government instead likely to continue implementing incremental measures in the face of persistent pressure to boost growth.