When confronted with topics like human rights and freedom of press from international community, China always has its own stance and could be very tough and diametrically opposed. However, when it is related to individual and economic freedom and society psyche changes under private industries, then it could be open for discussion as an agenda in the central meetings and even become an important legislative progress for the 2024 National People’s Congress (NPC). During the annual Two Sessions, the NPC and the National Committee of the Chinese People’s Political Consultative Conference (CPPCC), Zhao Leji, Chairman of the NPC, stated that the goals of this year’s work would include the improvement of related law-making like enacting Law on Rural Collective Economic Organization and Law on Promoting Private Economy Development in the 2nd Plenary Session of the Second Session of the 14 NPC on March 9, 2024. Once again, the private economic issues have arisen in the political agenda of the central congress. In fact, the private industries have encountered business difficulties and insufficient confidence under control of its development by China. It reflects that there is still a long and dark way for the private industries heading toward market free development and it also deeply projects a transmutation of desire for freedom with Chinese characteristics in Chinese society.
During the Two Sessions, Peng Jing, a member of the CPPCC and Director of ChongQing JingSheng Law Firm, submitted “Suggestions on Promoting Legislation for the Private Economic Development Law.” She has found out through widespread investigations that numerous private industries are facing challenges and the overall confidence of the private sectors are insufficient which urgently need legal protections to improve the weakness. Peng Jing not only suggested “promoting single legislation at national level and accelerating the process of specialized legislation,” but linked them with the issues of individual and economic freedom, fully reflecting the psyche transmutation in Chinese society. The major contents of her proposal are as followed:
To propose the principle of “if not forbidden by law, then it is allowed,” explicitly stating that market access should follow the “negative list” regulated by the government. Any enterprises, sectors, and businesses not listed in it could access the market equally by law. Obviously, private industries are still in a state of passive freedom constrained by various external limitations. Relatively, private industries need more autonomy and conscious decision-making for their economic activities. In other words, the freedom that private industries need, compared to human rights and freedom of press, more reflects the psyche transmutation in the current society. It means that individual and economic freedom should substantially project in the concept of ensuring equal protection and equal competition between private industries and other entities in the market as wished.
To establish core legislative system to protect personal and property rights of private economic entities. From Peng Jing’s perspective, there is a gap between legal protection and actual enforcement of personal and property freedom for private industries or individuals. Sometimes, their rights of innovative profits, business autonomy and other rights are damaged. These issues fully explain why it is still a long journey for the economic and social development in China. On the one hand, the society, under the supervision of party-state system, is in a state of passive freedom, hoping for regulatory lifting, while it’s hard to implement the concept of equal protection, which is against the willingness of active freedom in market development. Therefore, the issue of private economy is the best example of individual and economic freedom and it also clearly shows the essence of this issue is a struggle of passive and active freedoms.
Recently the members and representative of the Two Sessions have asked many time for enacting “Law on Promoting Private Economic Development.” When visiting members of China Democratic National Construction Association (DDNCA) and Federation of Industry and Commerce (ACFIC) in the Two Sessions of 2023, Xi Jinping emphasized again that “the Party Central resolutely uphold the Two Unwavering (unwavering on consolidating and developing public economy and unwavering on encouraging, supporting and guiding non-public economic development) and Three Unchanged (the status and functions of non-public economy in the process of our economic and social development remain unchanged, our unwavering principle and policy of encouraging, supporting, guiding non-public economic development remain unchanged, and the principle and policy of creating a favorable environment and providing more opportunities for non-public economic development remain unchanged). We always take the private sectors and entrepreneurs as our own people.”
Ever since, it marked a significant policy era for private economy, and the Tow Unwavering and Three Unchanged have become the most-emphasized key words in high-level meetings referring to private economic development. The “Opinions of the Central Committee of the Communist Party of China and the State Council on Promoting the Development and Growth of the Private Economy,” also know as “The New Thirty-One Items,” was issued in July last year, and the National Development and Reform Commission (NDRC) formerly established Private Economy Development Bureau in the following half-year, while several ministries and commissions had subsequently announced dozens of supporting measures; the finance departments in particular announced specific measures on strengthening banking service for private enterprises in the end of last year. Obviously, the issue of private economy has not only become a political agenda for public discussion, but the individual and economic freedom issues involving in it also reflects a desire for transmutation in Chinese society. The issue of freedom still explores back and forth in the unique party-state system of political consultation and democratic centralism. It has been eagerly awaited by widespread society and private enterprises, but the hope seems dim.
The international communities are concerned about issues of the human rights and freedom of press in China. It’s not just because these issues are related to interests of individual and economic freedom. However, each side has its own claim and stance, sometimes even in confrontation, making it difficult to engage in rational and objective discussions. The issue of private economy, on the contrary, can be listed in political agenda of CCP Central Committee for public discussion. It may be because the issue of private economy is more substantial and has wide and profound effects to the economic and social development in China, compared to the abstract issues like human rights and freedom of press.
As of the end of August 2023, the total number of private enterprises in China accounted for over 93.3%, with a contribution of tax revenue over 50%, revealing it’s profound influence on China’s economic and social development. And the issues of individual and economic freedom related to private economy also allow the outsiders to review the psyche transmutation in Chinese society. Obviously, it also explains why the individual and economic freedom are still lagging behind. In appearance, the private economy urgently needs a business environment of legalization; in reality, it should return to the real practice of individual and economic freedom
（Huang Chiu-Lung, Associate Professor, Department of Public Security, Central Police University）
（Translated to English by Tracy Chou）
