As the latest statistics shows that investment by private enterprises has slowed down sharply for the first half of 2016, concerns over the private sector keeps mounting. In light of this, a forum on “What Happened to China’s Private Enterprises” was held at Unirule Beijing Office. Famous economists and lawyers attended the forum, including, Mr. MAO Yushi, Honorary President of Unirule; Professor ZHANG Shuguang, Chairman of Unirule Academic Committee; Professor Ningyue from Chinese Academy of Social Sciences; famous lawyer Mr. CHEN Youxi; Mr. WU Si, President of Unirule; Professor YAO Zhongqiu from Beihang University; and Professor LI Weiguang from Tianjin University of Finance and Economics.
In the opening speech, Mr. MAO Yushi quoted John Locke and said that property should not be public owned, and power should not be private owned. He thought the only solution to China’s current economic conundrum was to start with the public ownership of private property and the private ownership of public power. He admitted that Unirule had always been concerned with the development of private enterprises, but Unirule’s capability was limited. However, it stood up anyway to do things right.
Professor ZHANG Shuguang illustrated the development of private enterprises. He mentioned that the investment by private enterprises had dropped rapidly and sharply. The total investment for the first half of the year grew by only 9%, and the investment by private enterprises only grew by 2.5%, whereas investment by state-controlled enterprises increased by over 24%. By June, investment rate by private enterprises had dropped to negative figures. This has never happened in China’s economic development since the reform and opening-up.
Mr. CHEN Youxi explained how the private enterprises were faring from legal cases. He thought as the law system became more and more explicit, the Chinese society was losing its vigour. In the past, legislation was thought to be better implicit instead of explicit. In the past 20 years, more and more legislation have taken a different guideline where they became more and more explicit, leaving little room for manoeuvre. Thanks to this, any reform moves could be halted due to breach of laws, depressing the economic development to a large extent.
Mr. HU Deping thought China’s reform had integrated private enterprises into the fundamental economic institution and socialist market economy. Compared to the planned economy era, the government has high evaluation o the private sector. However, it was the public discourse that worries the private enterprises. He pointed out that the current publicity and ideological environment was hostile to private enterprises. Without removing discrimination towards private enterprises, it was impossible for the private sector to embrace prosperity.
Professor SHENG Hong said if the government kept doing business, it was not government since its utmost function was to provide public goods. And in this context, the public goods entailed protection of property rights, preserving justice, and maintaining good judgement.
Pages,Now on the 1
Page 1 2