China Threatens Punishments for Verified Business Grievances State Council Probe

18 Mar, 2024

China Threatens Punishments for Verified Business Grievances State Council Probe

In Beijing's pursuit of ambitious economic growth targets this year, measures are underway to ensure local authorities contribute positively. Investigators will soon fan out across the nation, focusing on five key issues, notably unfair competition. Responding to mounting complaints from struggling businesses, teams of investigators will address concerns directly as part of a nationwide fact-finding mission initiated by the country's cabinet.

This initiative follows a government work report during Beijing's recent "two sessions," urging local governments to address business concerns effectively. Nationwide inspections, set to commence next month according to a State Council notice, align with Beijing's commitment to stable, transparent business policies, and holding local authorities accountable for economic growth objectives.

In line with this commitment, the State Council encourages enterprises to report violations and offer suggestions on its online platform. Inspectors will investigate reported cases and take necessary actions if complaints are verified, focusing on market access, unfair competition, government efficiency, rights infringements, and obstacles to national investment goals.

With a target GDP increase of around 5% for 2024, Beijing aims to rejuvenate the private sector, vital for economic growth. Despite government pledges and support, challenges persist, including industrial overcapacity and payment delays, impacting incomes and livelihoods. Foreign investment and private sector growth lag behind state-owned enterprises, raising concerns among foreign businesses about policy consistency and market fairness.

Foreign chambers of commerce welcome measures to address market barriers and unfair competition, emphasizing the need for balanced policies to instill investor confidence. Meanwhile, cities like Shanghai aim to attract foreign investment, pledging support and high-quality services to foster enterprise development