Aussie expert on China's private sector policy

Added On March 15, 2016

The Chinese government has vowed to unswervingly encourage, support and guide the country's private sector and create a favorable environment for it.
An Australian expert says China's policy is a boon for private investors in the country.
"What we're seeing out of Beijing at the moment is a further role for the private sector in the allocation of resources. Um ultimately that is still done with Chinese characteristics. But at the same time, this is about ushering in a new era of corporate governance, of transparency and best practice so the Chinese investors can have the confidence that they're investing in companies with sound balance sheets and ultimately adhering to best practice that you'd associate with an advanced economy. And I think this is about the Chinese government ushering in a new normal when it comes to transparency and best practice among Chinese companies." 
In China, private sector contributes 60 percent of economy growth and creates more than four-fifths of jobs.
Chinese government has vowed it will help cope with challenges the non-public sector faces resulting from a distorted market system.
The expert says China's move is a good thing for sustainable development.
"And that is all about China's new normal and its fundamentally a good thing for the health of China's government balance sheets, it's a good thing for the overall sustainability of China's GDP numbers. So I think that the market in China trading partners around the world such as Australia will ultimately welcome this move."