The State Council, China's cabinet, approved in principle
guidelines for encouraging, supporting and guiding the development
of the private sector of the economy at its executive meeting on
Wednesday.
At the meeting, chaired by Premier Wen Jiabao, members agreed
that it is imperative to create a better environment for the
private sector to compete on an equal footing and free it from
discrimination.
The decision lists a number of changes that should be made,
including relaxing market access restrictions, providing more
financial and taxation support and improving social and government
services.
The written decision says, "The introduction of private capital
into areas including infrastructure, monopolized industries and
public utilities will be encouraged and supported."
It also explicitly states that the growth of the private sector
is of "great strategic significance" to China's social and economic
progress and modernization: "It is conducive to promoting economic
prosperity in urban and rural areas, increasing fiscal revenue,
expanding employment, improving people's lives, optimizing the
economic structure and promoting economic growth."
(Xinhua News Agency January 12, 2004)