© Stocksak. FILE PHOTO: Chinese national flags are displayed on a street in Beijing as the 20th National Congress of the Communist Party of China (October 20, 2022) continues. REUTERS/Thomas Peter
BEIJING, Stocksak – China’s cabinet issued rules Tuesday to promote private business, including incentives for financial institutions, to lend to them. This latest move is to support an economy facing multiple headwinds.
China’s cabinet stated in a notice posted on its website that the rules were intended to protect private businesses’ legitimate rights and interests and increase employment.
“Private entrepreneurs are important market players, playing a significant role in booming an economy and increasing the number of jobs.”
The Tuesday rules also prohibited abusive charges against the self-employed.
The second-largest economy in the world is struggling with the economic effects of persistent COVID-19 curbs. A prolonged property slump, global recession risks and falling domestic demand are all contributing factors to the country’s second-largest economy.