officials from the national development and reform commission, the ministry of justice, the state administration of taxation and other departments pledged their support for the private sector at the 2019 acfic chairman's summit on sunday.
at the meeting, economic information daily reporters learned that currently, from the central and local governments, measures to support the private economy are accelerating the implementation and initial results, the next step is aimed at fully stimulate the vitality of private investment, will also embrace a package of policy measures. more new measures to cut taxes and fees will be unveiled, and the recently deliberated draft regulation on improving the business environment is being finalized and is expected to be issued soon.
recently, many places have carried out intensive promotion of private investment projects and large-scale "investment project package". experts pointed out that with the gradual release of policy effectiveness, and the increase of profit expectations, the fourth quarter of this year private investment projects are expected to reach a climax.
the policy to promote private investment has yielded initial results
"in november last year, a high-level conference on the healthy development of the private economy was held in sichuan, and 20 special supporting policies were formulated and issued to relieve difficulties for the development of private enterprises. great efforts were made to improve the business environment, which effectively promoted the healthy development of the private economy." sichuan provincial party secretary, director of the standing committee of the provincial people's congress peng qinghua said.
data shows that in the second quarter of this year, 299,000 new private economic market participants were registered in sichuan province, up 57.5% from the previous quarter. by the end of the second quarter, the added value of the private economy in the province reached 1161.07 billion yuan, a year-on-year growth rate of 8%.
the strong growth of private economy in sichuan is the epitome of the whole country. it is understood that since this year, relevant departments to reduce the private capital to enter the threshold of the key areas, cancel and reduce obstacles to private investment in areas such as pension, medical conditions, further implement the camp to increase tax cuts jiangfei measures, such as to establish the loan risk compensation mechanism to ease the difficult financing for private firms financing expensive, more measures and reduce the enterprise cost, to create a fair competition market environment, powerful promotes the development of private economy in high quality.
taking tax reduction and fee reduction as an example, wang shiyu, deputy director of the policy and regulation department of the state administration of taxation, introduced that since this year, tax authorities have taken solid and tough measures to ensure that tax reduction and fee reduction measures take root. "the scale is unprecedented, the scope of incentives is unprecedented, the number of incentives is unprecedented." in the first seven months of this year, 745.045 billion yuan of new tax cuts were made by private taxpayers, accounting for 63.46% of the total new tax cuts, or nearly two-thirds. sales revenue of china's private economy grew 9.5 percent year on year, 1.5 percentage points faster than the overall growth rate, according to data from the third phase of value-added tax invoice and golden tax.
zhao chenxin, deputy secretary general of the national development and reform commission, said the ndrc took multiple measures to reduce the tax burden on enterprises, cutting costs by more than 1.2 trillion yuan in the first half of this year and expected to exceed 2 trillion yuan for the whole year.
however, teng tai, president of huambo new economic research institute, pointed out in an interview with economic information daily that "since the beginning of this year, private investment has stabilized at a low level or even rebounded a little, but overall, the strength and momentum of the rebound is still insufficient and needs to be further strengthened." private investment in fixed assets reached 2.3963 trillion yuan in the first eight months of this year, up 4.9%, down 0.5 percentage points from the first seven months of this year, according to the national bureau of statistics.
liu xingguo, a researcher with the research department of the china enterprise confederation, also said that the current macroeconomic growth has changed gear, and the overall investment growth rate has declined. the negative factors affecting private investment confidence have not been completely eliminated, and some private capital still hold a wait-and-see attitude. the growth rate of private investment fluctuates at a low level, which to some extent reflects that private investment confidence still needs to be strengthened.
more measures to stimulate private investment are on the way
ning jizhe, deputy director of the national development and reform commission, said that expanding effective investment is an important measure to promote the "six stability measures" and maintain steady economic growth. we need to take multiple measures to invigorate private investment and give full play to its role in accounting for more than 60 percent of total investment.
it is learned that more measures to stimulate the vitality of private investment are on the way. on market access and a level playing field, zhang guangbo, deputy director of the second bureau of legislative affairs of the ministry of justice, said that improving the business environment is a continuous and in-depth process that requires constant reform and innovation. a few days ago, the executive meeting of the state council deliberated and passed the draft regulations on improving the business environment, which aims to provide institutional guarantees for various market entities to invest and start business. the ministry of justice and the national development and reform commission are currently working on further revisions to the draft regulations on improving the business environment, which are expected to be issued in the near future.
"in the next step, the tax authorities will further serve and support the development of the private economy, intensify the overall promotion, and make sure that the tax reduction is in place, the fee reduction is in place, and the tax collection is standardized according to law. we will improve the 'iron ledger' of tax and fee reductions, calculate accurate and clear comprehensive accounts of all tax and fee reductions, and enhance the sense that taxpayers and payers enjoy both policy dividends and convenience in services." wang shiyu said.
in addition, the reporter of economic information daily has learned that china will encourage private enterprises to participate in the national strategy, establish a long-term mechanism to promote projects to private capital, and actively promote cross-regional mergers and acquisitions of private economy and participate in major infrastructure construction.
gao yunlong, vice-chairman of the cppcc national committee and chairman of the all-china federation of industry and commerce, said china's steady economic development and favorable environment have provided a broad stage for high-quality development of the private sector. comprehensively deepen reform to promote the government to further optimize the business environment, new urbanization and rural revitalization strategy promote infrastructure construction to fill short board, supply side structural reforms bring social consumption upgrade, the new technological revolution led industry upgrading, constantly guide the enterprise internationalization growth "area", for the private enterprise development provides a strong protection.
large-scale "investment package" is expected to be launched
private investment confidence is growing. "we have decided to locate the headquarters of new hope global holdings in chengdu and invest 10 billion yuan to build a 300-meter-high landmark headquarters building and an accompanying headquarters industrial park." new hope group chairman liu yonghao revealed the new plan to invest in sichuan. fu jun, chairman of xinhualian group, also said that in the next three years, xinhualian group will invest at least 20 billion yuan to participate in the development of sichuan's cultural tourism industry.
it is reported that at the summit promotion meeting on the same day, 162 projects were formally signed, with a contract amount of 158.8 billion yuan. of these, 153 projects were invested outside the province, with an amount of 139.737 billion yuan, accounting for 94.4% and 87.9%, respectively.
it is worth mentioning that many local governments have recently introduced new measures to invigorate private investment and promoted private investment projects in key areas. for example, hebei province has established a project reserve pool to attract private capital to invest in key areas, and has introduced more than 80 billion yuan of "investment project packages" to private capital "online". beijing plans to select a number of projects with clear investment return mechanism and high commercial potential to promote to private capital by the end of the year. hubei province proposed to build a connection channel between financial institutions and major projects to help solve the financing problem of major private investment projects and promote the implementation of major projects.
liu xingguo pointed out that at present, many places make great efforts to promote private investment projects, in order to get through the "last mile" of the implementation of the project, to ensure that the recommended project has a good profit expectation, to form enough investment attraction to private capital. in addition, we will further improve the business environment, remove concerns about private capital investment, and provide better services for private capital investment.
"private investment plays a vital role in overall investment and steady growth. private investment is expected to pick up further in the second half of this year or early next year as greater efforts are made to improve the business environment and policies such as tax cuts and fee reductions take effect." tengtai said.
source: china financial information network