Ahead of China's annual 'two sessions', private businesses are urging the government to prioritize settling outstanding debts amid cash flow challenges. The Beijing Dacheng Enterprise Research Institute has put forward 38 suggestions to protect rights and address operational issues, including overly rigid law enforcement, financing difficulties, and hidden market access barriers.
The Beijing Dacheng Enterprise Research Institute, an independent research firm, issued a report on February 25 with 38 suggestions addressing issues faced by private entrepreneurs. Private businesses are grappling with cash flow challenges, and entrepreneurs want the settling of outstanding debts to be made a priority.
The report suggests '[We suggest] establishing a closed-loop mechanism for debt collection and setting up a unified national platform for monitoring and expediting debt settlement.' It also calls on authorities to allocate dedicated funds from government bonds to inject liquidity into the debt chain, with clear rules governing the use of the funds. The report states: 'Upon receiving the starting funds, enterprises must prioritise settling outstanding debts with both upstream and downstream parties, thereby gradually clarifying creditor-debtor relationships through improved cash flow.'
These suggestions include enacting a Private Economy Promotion Law, overseen by the Supreme People's Court, to protect private sector rights. Keywords encompass Beijing, China, private economy, and related legal frameworks. Private entrepreneurs hope the government will respond to these concerns during the upcoming two sessions to ease operational pressures.
