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China's private sector promoted by new law: "The trade war makes this legislation more urgent"
CGTN Europe
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20/05/2025
CGTN Europe interviewed Zhang Zhiwei, President & Chief Economist at Pinpoint Asset Management
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News
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00:00
Zhang Chiwei is the president and chief economist at Pinpoint Asset Management in Hong Kong.
00:07
Yeah, I think it's very important, right?
00:09
So it provides a legal framework to protect the private entrepreneurs.
00:14
I think, you know, if in the past there were cases where, say,
00:19
somebody posted nasty comments about a particular private company
00:22
and damaged the reputation of those companies,
00:25
and then it's hard to, you know, proceed and ask for compensation for those kind of behavior.
00:32
Now, under the current framework, I think, you know,
00:35
we'll probably see a lot of lawsuits down the road for that kind of behavior if that happens.
00:39
So there are real consequences and real protection provided to the private entrepreneurs.
00:45
I want to talk to you about the timing because it's been in the works for many, many months,
00:50
but, of course, it's coming into effect within this swirl of tariffs and tensions.
00:57
Does that make a difference?
01:00
It does.
01:01
I think the trade war, that risk of external tension,
01:08
probably make this particular piece of legislation more urgent.
01:13
Usually it takes a long time for a law like this to get passed,
01:16
but this particular piece got approved much faster.
01:20
And I think the trade war is certainly one factor in play.
01:25
The other thing is probably the case of DeepSeek that really made it clear
01:31
that the private entrepreneurs can make a big difference in terms of innovation
01:36
and boosting productivity.
01:39
And I think that made the leadership probably have, you know,
01:45
even stronger conviction that this law need to be passed quickly.
01:49
What we know so far is it's about changing the approach
01:53
so that private enterprises are treated more similarly to state-owned enterprises.
01:59
So let's talk a little bit about how it works
02:01
because there are still things like financing and market access.
02:05
Those barriers, they still need to be considered, don't they?
02:10
Absolutely.
02:11
I think, you know, that's one important part of the law
02:14
that, you know, people have been talking about, you know,
02:17
different treatment for private entrepreneurs
02:22
and state-owned enterprises in the past for many, many years.
02:26
Now, this piece of legislation will help to sort of provide,
02:31
hope to guarantee that there is equal treatment, you know,
02:35
access to credit, access to the market.
02:38
And I think that will open many opportunities for private entrepreneurs.
02:43
We'll see, I think, in the next few years,
02:45
we'll probably see real progress in that front.
02:48
You're talking about what happens in China as a place to do business.
02:52
What signal do you think that this law does?
02:56
What signal does it give to the rest of the world?
03:00
Yeah, I think this sends a signal that the leadership now understand
03:07
the importance of the private sector,
03:10
that they need real legal protection
03:12
so that they can play a bigger role consistently for the years to come,
03:19
particularly in areas where the state-owned enterprises
03:22
probably have limitations.
03:25
I think this is opening up the market to the private entrepreneurs
03:30
as well as, I think, for foreign investment.
03:33
I think down the road,
03:34
just general better environment for doing business
03:38
for the private sector will also benefit the foreign investment.
03:42
You're talking about what the concerned …
03:43
lands were, yeah,
03:44
I've had just been about to pay for the stock for all the things
03:47
that theятis board has brought up
03:49
and I haven't going to spend Karenaa …
03:50
…
03:51
…
03:57
…
03:58
cannot be …
03:59
…
04:01
…
04:03
You want me to do it as a matter of your business or a company,
04:04
we can monitor more your business,
04:06
but we don't want in terms of new business.
04:07
Look how voráisave!
04:08
...
04:10
…
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