Xi vows to support private firms amid uncertainty, Latest Business News - The New Paper

Xi vows to support private firms amid uncertainty

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BEIJING: Chinese President Xi Jinping sought to reassure Chinese entrepreneurs at a meeting yesterday with promises to prop up private companies with lower taxes and more funding, as he acknowledged uncertainty in China's economy.

Mr Xi held the meeting amid signs that China is losing steam as it faces a trade war with the US, a massive debt buildup and a weakening currency.

Though China's overall economic status is stable, "uncertainty in our country's economic development has clearly increased, downward pressure has grown, and companies are facing more difficulties", said Mr Xi, according to the official Xinhua news agency.

Mr Xi, who has voiced his support for private companies multiple times this year, made several policy suggestions, including lowering corporate taxes. He proposed provincial governments raise their own "rescue funds" to bail out companies.

Mr Xi also emphasised creating a fair and competitive environment and tasked local governments with "correcting" the behaviour of certain government departments, as well as large companies that use their dominance to "bully" smaller ones. - AFP