Committee Channel | Wang Junjin: Stimulate the Vitality of Private Investment and Increase the Proportion of Private Investment

The second plenary session of the Fourth Session of the 14th National Committee of the Chinese People’s Political Consultative Conference was held on the afternoon of the 7th, with members giving speeches. Xinhua News conducted online text and image live coverage.

Wang Junjin, Chairman of Shanghai JunYao (Group) Co., Ltd.:

Dear members, I would like to speak on behalf of the All-China Federation of Industry and Commerce about: Stimulating the vitality of private investment and increasing its proportion.

The Fourth Plenary Session of the 20th Central Committee of the Communist Party of China emphasizes expanding effective investment as an important task for building a strong domestic market and accelerating the new development pattern, highlighting “stimulating the vitality of private investment and increasing its share.” Private investment is a vital source of vitality for the socialist market economy and an important support for stabilizing growth, adjusting the structure, and promoting employment. To further energize private investment, we need to address three key issues: “dare or not to invest,” “where to invest,” and “where does the money come from.”

Therefore, I suggest:

1. Create a more optimized legal environment to eliminate concerns for private investors. Implement the Private Economy Promotion Law effectively, continuously improve legal systems related to property rights protection, market access, and social credit, establish a sound intellectual property protection system, severely punish various infringements against private enterprises, and smooth channels for rights protection to stabilize investors’ long-term expectations. Increase transparency and predictability in policy formulation and implementation, set reasonable transition periods for major policy adjustments, and strengthen pre-communication. Improve government integrity and performance mechanisms, actively invite enterprises to participate in government integrity evaluations, and perfect compensation and relief mechanisms for damages caused by planning and policy changes.

2. Expand the broad space for private investment through greater equal access. Firmly implement the negative list system for market access, strictly enforce “non-prohibited but permitted,” and continue to clear various hidden barriers outside the list. Develop detailed implementation rules for private capital participation in “dual” major projects (major national strategies and key area safety capacity building), specify requirements such as equity share for private capital involvement in major projects, ensuring sufficient participation space for private enterprises. In key sectors such as energy, transportation, telecommunications, and public utilities, launch a new round of high-quality demonstration projects to substantially promote marketization of competitive segments. Increase support in financial services, innovation platforms, and application scenarios, guiding private capital into emerging fields and future industries. Strengthen capital support for private investment in new infrastructure projects, explore establishing a development fund for productive services, expand investment in livelihood services, cautiously relax access restrictions for private capital in elderly care, education, and other fields, improve service pricing mechanisms, and promote effective investment and consumption in the service industry.

3. Use more precise financial empowerment to build a strong engine for private investment. Continue to vigorously develop inclusive finance and supply chain finance, fully leverage new policy-based financial instruments to support private investment projects. Accelerate the establishment of comprehensive evaluation systems for private enterprise credit and credit enhancement mechanisms for small and medium-sized enterprises, encouraging financial institutions to provide more loans based on enterprise credit. Optimize government-backed financing guarantee systems, reduce financing costs for private enterprises, and mobilize more social capital. Promote “innovation points systems,” release clearer and more specific guidelines for private investment, and use targeted financial tools to guide private capital precisely into areas needed by the country and future industries, forming a virtuous cycle of investment, development, and contribution. Study the establishment of mixed-ownership private enterprise funds, support manufacturing private enterprises in restructuring and reducing debt, and enhance their investment and financing capabilities. Accelerate the development of M&A funds, improve supporting measures for “Six M&A Policies,” and support private enterprises in using capital markets to form large enterprises and groups.

The Fourth Plenary Session of the 20th Central Committee of the Communist Party of China has outlined a grand blueprint for national development during the “14th Five-Year Plan” period, providing comprehensive opportunities for private investment. As the construction of a unified national market accelerates and a first-class business environment characterized by marketization, rule of law, and internationalization is further advanced, investment opportunities for private enterprises will expand, investment capacity will strengthen, and investment conditions will improve. Private enterprises will play a greater role in advancing Chinese-style modernization.

(Edited by: Wen Jing)

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