China seeks to promote development of private businesses with more loans

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Chinese national flags fly in a street as the 20th National Congress of the Communist Party of China continues in Beijing

BEIJING (Reuters) – China’s cabinet issued rules on Tuesday to promote private businesses, including incentives for financial institutions to lend to them, in its latest move to support an economy facing multiple headwinds.

The rules aim to safeguard the legitimate rights and interests of private businesses and expand employment, China’s cabinet said in a notice published on its website.

“Private businessmen are important market players, playing an important role in booming the economy and increasing employment.”

The Tuesday rules also banned abusive charges to the self-employed.

The world’s second-biggest economy is grappling with the economic impact of persistent COVID-19 curbs, a prolonged property slump and global recession risks with falling domestic demand and high unemployment.

(Reporting by Liangping Gao and Ryan Woo; Editing by Andrew Heavens and Philippa Fletcher)

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