MNI: President Xi Aims To Boost Private Business Confidence

     BEIJING (MNI) - Chinese President Xi Jinping pledged his support to private

enterprises by promising tax cuts and bailout funds while meeting entrepreneurs

in Beijing yesterday, aiming to boost confidence against the back drop of the

recent A-share rout and decelerating economic growth.

     Xi convened an unprecedented symposium to talk to business owners from the

private sector, including Tencent chairman and CEO Pony Ma, and Baidu's Robin Li

on Thursday. 

     It was a high-profile meeting as it is quite rare for the party and the

country's top leader to host such a conversation. He was joined by three

politburo members, Wang Yang, Wang Huning and Han Zheng, said Xia Kedao, an

online publication of the mouthpiece People's Daily in a commentary piece on

Friday.

     Xi reaffirmed in his speech that private business still plays an important

role in the economic and social development of the country, and that the

government would focus on creating a better environment and more opportunities

for the private sector. 

     He sought to dispel the recent concerns over Beijing's tilt toward

state-owned enterprises.

     Xi also pledged to promote substantial tax cuts including value-added tax,

cuts in businesses' social security contributions and to broaden the financing

channels for private enterprises.

     Meanwhile, local governments were urged to raise funds to establish rescue

funds to bail out promising private companies which tied in with the agenda of

economic structure upgrade, according to Xi's speech.

     The symposium followed the Politburo meeting on Wednesday, during which the

ruling party addressed the current economic situation - with downward pressure

having increased and some businesses running into difficulties.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

--MNI London Bureau; tel: +44 203-586-2223; email: david.robinson@marketnews.com

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