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      Economy

      New guideline protects entrepreneurs' property rights, promotes sustainable innovation

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      2017-09-27 08:42Global Times Editor: Li Yan ECNS App Download

      Pledges to protect entrepreneurs' property rights, encourage innovation

      China's latest guideline to focus on protecting property rights of entrepreneurs and create a new mechanism to facilitate interaction between the government and businesses could help build a new type of government-business relations and sustain the country's economy's development, analysts said.

      The guideline, the first one that focuses on the entrepreneurial spirit, was released on Monday by the Communist Party of China (CPC) Central Committee and the State Council to spur market vitality, the Xinhua News Agency reported.

      The guideline stressed that the government will protect entrepreneurs' property rights according to law, ensure fair competition and strengthen intellectual property rights to encourage innovation, Xinhua reported.

      It will also work on rules to protect the IPR of innovative achievements, such as new business models and cultural creativity.

      China faces pressure from an economic downturn, which discourages some private companies from further investing and innovating, or even turn to illegal operations, which undermines technological progress and upgrading, said Hu Xingdou, a professor at Beijing Institute of Technology and an expert on Chinese issues.

      "Legally protecting the property rights of entrepreneurs is very important. Truly preserving their properties, creating a legal environment and enhancing a sense of security of their wealth could help entrepreneurs feel safe and stable," Chang Xiuze, a researcher at Tsinghua University's National Center for Economic Research, was quoted by The Beijing News as saying.

      The guideline further calls for the building of a more tolerant environment for entrepreneurs and an atmosphere that encourages them to innovate.

      "The guideline aims to implement the call of Chinese President Xi Jinping to establish a new type of government-business relations based on sincerity and honesty," said Liu Yuanchun, vice president of the Renmin University of China, The Beijing News reported.

      The government looks to the entrepreneurial spirit, which includes hard work, excellence, craftsmanship and innovation, and service to society to stimulate mass innovation and create a positive business climate, the guideline said.

      "Entrepreneurship is the spirit that gives credit to society, which is consistent with the goal of China's economic structural reform," said Zhu Lijia, a professor of public management at the Chinese Academy of Governance.

      "It is the main force in a market economy that promotes technological and institutional creativity," said Hu.

      Xinhua quoted Zhang Ruimin, the chairman of appliance maker Haier, as saying that "the guideline provides all-round support for entrepreneurs to focus on quality and sustain innovation-driven development."

      Experts added that promoting entrepreneurship is consistent with the agenda of the 19th National Congress of the CPC, which opens on October 18.

      "The 19th National Congress is a time to solve problems," Hu said.

      After the 19th National Congress, China's reform will be strengthened, and Chinese companies will further go global. And entrepreneurship will play a significant role, Zhu said.

        

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