Politics
Comment: China wants the private sector to stimulate growth again, but confidence cannot be rebuilt overnight

Are XIS insurances sufficient?
According to Xinhua, Mr. Xi said to entrepreneurs, also including Mr. Ma, Ren Zhengfei from Huawei and Wang Chuanfu de Byd, that he was “privileged for private companies and entrepreneurs to give a complete game to their capacities.
He assured them that the current difficulties and the challenges faced by the private sector could be overcome and called for a renewal of confidence in the future.
Mr. XI also promised to create equal treatment for the private sector and has committed to guarantee access to bank loans while attacking the application of illegal laws and administrative actions, in particular arbitrary costs, fines, inspections and convulsions of assets.
The remarks of Mr. Xis represent the strongest signal for supporting private companies at a time when the Chinese economy is in a deflationary cycle, weighed down by the decline in real estate prices and low confidence of consumers. Meanwhile, Trump, in his second term, threatened additional prices on Chinese products, and Chinese exports, one of his traditional growth engines, remain dark.
Beijing recently announced the objective of anneconomic growth “approximately 5%” for this year, but the revitalization of the private sector is crucial to achieve this objective, especially since the private sector contributes to around 60% to the gross domestic product Chinas and more than 80% of employment.
Will the words of Mr. Xis be sufficient? After all, China had already carried out its repression against the private sector from 2023, those responsible for the rhetoric pro-enterprise and referring to private entrepreneurs as “one of us.
However, in many localities short of money, illicit actions against the private sector, including arbitrary costs, fines and asset crises, continued tirelessly.
Mr. XIS 'remarks should limit these illicit actions, but it remains to be seen if they will arouse optimism among private businessmen.
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