Skepticism prevails as Chinese leaders promise to back private businesses to spur slowing economy
Chinese leader Xi Jinping’s government is promising to drag the economy out of a crisis of confidence aggravated by tensions with Washington, wilting exports, job losses and anxiety among foreign companies about an expanded anti-spying law
BEIJING — The Fangbiaogan Real Estate Agency in the southern city of Nanning is still waiting for China’s post-COVID rebound.
Home sales are 30-40% below last year's depressed level after the economy barely grew in the latest quarter, according to the owner, who would give only his surname, Cai. He has cut staff by 80% to 40 employees. Their income from sales commissions has fallen as much as 90%.
“People are worried,” said Cai. “They feel safer holding onto their savings instead of spending them.”
Chinese leader Xi Jinping’s government is making ambitious promises to drag the economy out of that crisis of confidence aggravated by tension with Washington, wilting exports, job losses and anxiety among foreign companies about an expanded anti-spying law.
Its most striking pledge: To support entrepreneurs who generate jobs and wealth but have felt under attack over the past decade as the ruling Communist Party built up state-owned industry, tightened control over business and pressured them to pay for its technology and industrial ambitions.
China has an “urgent need” to “boost confidence in the outlook for the private economy," the Cabinet said in a July 19 announcement.
Entrepreneurs and investors are waiting to see what tax, spending or other steps the ruling party might take — and whether it will rein in state companies that dominate banking, energy and other industries and that economists say are stifling growth.
The ruling party took action after the economy grew by just 0.8% in the
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