Opinion | Leaders at China’s 20th Communist Party congress should extend a friendly hand to capitalists
- The private sector is the source of China’s economic growth and security, but they bear the brunt of the country’s ‘dynamic zero’ Covid policy
- If party leaders regard economic growth as necessary to the realisation of the ‘China Dream’, they should send a clear message to entrepreneurs
A crisis of confidence is spreading among private entrepreneurs: the future has never been so uncertain for many of them, and many assumptions that have been taken for granted over decades now seem to be on shaky ground.
Decisions made by Chinese entrepreneurs matter a lot to the country’s future. China’s economic boom has largely been rooted in the success of its private sector. Beijing itself has said that the private economy contributed to half of the country’s tax revenues, 60 per cent of the gross domestic product, 70 per cent of technology innovations, 80 per cent of jobs and 90 per cent of business registrations.
The private sector is the source of China’s economic growth, vitality and security. But they also bear the brunt of costs stemming from the country’s immature market system, lack of private property protection, and extensive state interventions.
The “dynamic zero” Covid-19 policy may be the last straw.
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Explainer: What is the Chinese Communist Party’s 20th national congress?
