Macro-Economy
Nation called on to improve legal environment
Last Updated: 2014-03-10 23:13 | Global Times
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China needs to improve its legal environment to ensure private firms' development, Zhuang Congsheng, a political advisor and vice chairman of All-China Federation of Industry and Commerce, said Monday.

There are lots of complaints from private entrepreneurs about some law enforcement practices by government agencies including entrapment, selective enforcement of law and abuse of powers, Zhuang told the Global Times on the sidelines of the ongoing two sessions.

For instance, there is a wide range of fines for violations, so how much entrepreneurs are fined sometimes depend on their personal relationships with law enforcement officials, said Zhuang, a member of the National Committee of the Chinese People's Political Consultative Conference (CPPCC).

Meanwhile, interviews with more than 600 private entrepreneurs conducted by the federation last year also showed their biggest concern was that "their personal and assets safety could not get effective protection," he said.

Nearly one-third of respondents said they have already immigrated or are mulling immigration, according to a survey on 150 private entrepreneurs conducted by Horizon Research Consultancy between September and November 2013, citing major reasons such as uncertainties about policy changes and worries over personal and assets safety.

"What many private entrepreneurs need are not privilege or better care, but fairness and a sense of security," Zhuang said.

There were more than 12 million private firms in China by the end of 2013, and the private sector contributed about 60 percent to the country's total GDP and 85 percent of job opportunities, data from the federation showed in February.

Private firms are the driving force of innovation, so authorities should create a fair environment for them, Yuan Yafei, a CPPCC National Committee member and chairman of private firm SanPower Group, was quoted by the Xinhua News Agency as saying on Monday.

The "negative list model" used in the Shanghai free trade zone could be applied to competitive fields as a means to stimulate private firms' vitality, he said.

Tian Huiguang, a CPPCC National Committee member, suggested deepening the reform of the administrative system to ensure all market entities enjoy equal rights.

Administrative approvals could be simplified in many industries except the food and medical sectors, Tian said.

PremierLi Keqiangsaid in a government work report delivered Wednesday to the ongoing annual session of the National People's Congress that another 200 administrative approval items will be scrapped or delegated to lower governments.

 

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