China will not ‘discriminate’ between state and private companies, vows Premier Li Keqiang

China will not “discriminate” between state owned and private companies, with Premier Li Keqiang vowing to roll out a series of measures to alleviate some of the burdens felt by the private sector including lowering the cost of financing.

“We will ensure all companies benefit from our administrative streamlining measures. There should be no discrimination,” Li said at the conclusion of the National People’s Congress (NPC) in Beijing on Friday.

“Through years of efforts, we have cut the time required for getting a business licence from the previous 22 days to 8.5 days, this year our goal is to cut it to five days, and in some places with better conditions, we may cut it to three days.”

Companies, though, have complained that even after obtaining their business licence, they still required additional certificates.

“That is, their companies can be up not actually running. This year, we plan to ensure that all companies can start operation right after they get the business licence,” added Li.

China’s private business owners have been worried since online commentators and academics boldly claimed last year that the private sector had “basically fulfilled its task of assisting the state-owned economy in achieving its rapid development”.

Huang Jianping, an NPC delegate and president of Dongguan-based tile company Wonderful Group, said that local government officials were reluctant to deal with entrepreneurs because of Beijing’s anti-corruption campaign, which had resulted in a lot of bureaucracy and inefficiency.

In October, President Xi Jinping convened an unprecedented symposium to hear the views of dozens of representatives from the private sector, which contributes 60 per cent of China’s gross domestic product, aimed at boosting confidence with China’s economy witnessing its slowest growth since 1990.

Huang added that the local government became more efficient after Xi’s symposium.