Chinese President Xi Jinping said on Monday (6) that private companies should be “rich and loving” in taking responsibility with state-owned companies to achieve prosperity for all.
Chinese and foreign private companies are waiting for Beijing to provide details on how it intends to pursue “common prosperity”, Xi’s initiative to narrow China’s wealth gap, and how it expects private companies to contribute.
In remarks during a closed-door meeting with government advisers representing the business sector during the annual session of parliament, Xi urged private companies and businesspeople to be “patriotic” and actively participate in charitable endeavors, state radio reported on Monday. fair.
Xi also said private companies should share the fruits of their growth with employees more equitably, in what he called a “community of shared interests.”
“Be rich and responsible, be rich and benefit others, be rich and loving,” Xi was quoted as saying by state radio.
Some analysts say private companies are concerned that Xi’s call for “common prosperity” could translate into a de facto tax as debt-ridden local governments struggle to raise tax revenue.
“The problem with ‘common prosperity’ is that it can lead to a very uncertain tax burden, unlike the official corporate tax rate established by law,” Alfred Wu, an associate professor at the Lee Kwan Yew School of Public Policy, told Reuters. from the National University of Singapore.
He said it is unfair to expect private companies to share the social responsibility for “common prosperity” with state-owned companies, which enjoy privileged access to markets and preferential loans not always available to private companies.
Xi said on Monday that China will always treat companies and private entrepreneurs as “family” and vowed to remove institutional obstacles that prevent private companies from competing fairly, according to state radio.
Beijing has pledged to support a private sector reeling from a regulatory crackdown on property, technology and private education and state-imposed Covid-19 restrictions that were lifted in December.
Xi blamed the West for the difficulties facing the Chinese economy. “Led by the United States, the West has implemented all-out containment to crack down on China, bringing unprecedented challenges to China’s development,” Xi was quoted as saying by state radio.
Source: CNN Brasil
Bruce Belcher is a seasoned author with over 5 years of experience in world news. He writes for online news websites and provides in-depth analysis on the world stock market. Bruce is known for his insightful perspectives and commitment to keeping the public informed.
