New legislation to boost private business

Guangzhou among local governments set to ensure protection of rights, high-quality development

Authorities in Guangzhou, capital of Guangdong province, are planning legislative changes to boost private businesses in order to ensure the high-quality development of the local private economy.

Citing shifts in the private economy from rapid growth to high-quality development, Ye Huadong, director of the Guangzhou Small and Medium-sized Enterprises Bureau, said the changes will address key issues to boost the confidence of local private companies.

The new rules are expected to be approved by local legislators by the year's end, Ye said.

"The 42-article document, covering general principles, innovative development and the rights and interests of the private economy, aims to protect the legitimate rights and interests and optimize the development environment of private firms," Ye said.

Specific measures are included in a draft saying that government departments should not in an arbitrary way terminate the legitimate use of production and business premises of private companies.

Additionally, banking and financial institutions should not stop issuing loans to private enterprises or terminate loans before they are due, according to a draft that was open to the public for comments from March 17 to April 1.

In Guangzhou, the private economy contributes 95 percent of market players, over 80 percent of new jobs and more than 40 percent of the GDP, fixed assets, investment and tax revenue, according to the province's industry and information technology bureau.

In the case of land use for private enterprises, the draft will require government departments to make reasonable use of existing land stocks, unused State-owned factories, professional markets and other places to provide adequate space for the operation of the private economy.

Land for private projects that comply with land planning and industrial policies may be provided through industrial land supply methods such as lease-purchase agreements and flexible annual leasing to reduce land costs, said the draft document. Besides, small and medium-sized private companies that jointly participate in the bidding and auction of industrial land are allowed to divide the land according to regulations.

To protect the rights and interests of private enterprises, the draft regulation requires a unified negative list system for market access in accordance with national regulations. Such a negative list ensures that no discriminatory conditions are to be imposed on private companies that enter industries and fields that are not explicitly prohibited by laws and administrative regulations.

"The draft document not only addresses the protection of rights and interests of private enterprises, but also attaches great importance to innovative development, which will be a new trend for growth," said Shao Jianming, vice-chairman of the Guangzhou Federation of Industry and Commerce.