Zhang Gaoli, the current CPC Tianjin Committee Secretary and member of Politburo of the Communist Party of China, recently made comments that called for more support to be given to the private sector. Zhang acknowledged the country’s tight grip over industry, and commented that “breakthroughs must be made to let private capital into industries”. Economists have long-warned Chinese leaders that delaying private investment-flow to certain sectors is stunting the country’s growth.
Though private companies in China create jobs and generate economic growth, they pale in comparison to state-run rivals, those that receive subsidies and other advantages from the government. Whether or not these recent remarks will lead to a legitimate response from parliament is unclear. What is clear, however, is that it is becoming more obvious that something needs to be done about the freeing of industry in China, and hopefully comments such as these can incite a reaction amongst leaders in the country.