A worker works at Skytimes Green Energy Co., Ltd. in Fuzhou, southeast China's Fujian Province, March 20, 2024. In recent years, private enterprises in Fujian have been focusing on the new demands of the international market, continuously increasing technological innovation and expanding overseas markets and sales channels. Photo: Xinhua

From East China's Fujian Province to Northeast China's Jilin Province, governments at all levels vowed to provide more support such as easier market access, an improved business environment and public services to bolster the confidence of private companies, the major driver of the world's second-largest economy.

Experts said that the extensive moves made by local governments, such as Fujian, Jilin and Guangzhou in South China's Guangdong Province, reflect their determination to boost market confidence and shore up the economy, in which private businesses take an important part, experts said.

Speaking at a press conference held at the State Council Information Office on Monday, Fujian provincial officials said that they are boosting local businesses with support as the province pushes into an era of high-quality development.

Fujian is a major province for private businesses in China. The private economy accounts for 90 percent of all business entities in Fujian, contributing approximately 70 percent of its economic output, over 70 percent of tax revenue, some 70 percent of technological innovation and over 80 percent of employment, Guo Ningning, vice governor of Fujian, said at Monday's press conference.

"Fujian is committed to fostering a world-class business environment by upholding the principles of the market, the rule of law and globalization," said Guo. 

Among the measures, the provincial government has pledged to persist in promoting fair competition among all market entities, safeguarding the property rights of private enterprises, and protecting the rights and interests of all entrepreneurs in accordance with the law, said Guo.

Private firms have taken a crucial strategic place in the national economy, whether in the contribution of economic growth or the creation of jobs, Li Chang'an, a professor at the Academy of China Open Economy Studies of the University of International Business and Economics, told the Global Times on Monday.

The intensive moves from the central to local governments are supporting private businesses to regain their market confidence, which has been shattered by the growing challenges of the domestic and international economies combined, Li said.

Fujian is not alone, as many other provinces are moving to shore up private businesses. On Sunday, the Jilin provincial government convened a meeting, pledging to further boost the confidence of private companies, with measures to better resolve prominent issues such as financing, land and talent.

Jilin also vowed to better protect the property rights of private enterprises and the rights and interests of entrepreneurs in accordance with the law.

Guangzhou, the capital of South China's Guangdong Province, is rolling out regulations on supporting private economic development, which will come into effect on May 1, according to the official website of the city government on Monday.

Since China's reform and opening-up began 40 years ago, Guangzhou's private economy has grown from scratch and gone from weak to strong. Private companies take up to 95 percent of the city's market entities, more than 80 percent of new jobs and more than 40 percent of the city's GDP, according to the city government.

The new legislation will grasp the problems faced by private entities of different sizes and industries, optimizing the business environment and public services, the Guangzhou government said.

The government's support for the private economy has continuously strengthened, as evidenced by Guangdong, a region with a highly developed private economy since the start of reform and opening-up, Li Youhuan, a research fellow at the Guangdong University of Finance and Economics, told the Global Times on Monday.

Experts said that in the face of global challenges, how to restore market confidence has become an important issue to tackle for governments of all countries.

The measures from local governments came amid the Chinese central government's emphasis on promoting the development of private firms in the Government Work Report delivered during the two sessions in March.

In the Government Work Report, there was a special mention of the need to introduce policies to promote the development and growth of the private economy.  

These include increasing the proportion of loans to private enterprises, expanding the scale of bond financing, and strengthening support for individual businesses through targeted assistance and support.

Experts said that the recent, intensified moves are timely and once again show the governments' understanding of the importance of private companies in the nation's economic development. 

The government should further reduce the market entry barriers for private capital, including difficulties in obtaining loans, and strive to ensure that private enterprises receive equal treatment to state-owned enterprises, Li Youhuan said.