Chinese leaders met two weeks back to set the nation’s economic working plan. Chinese plans to boost the economy with stimulus measures (which lifted the stock market to record highs) were announced last week. Below can be lessons for capitalists & socialists;

1. Economy grew by 5% during Q1&2 in 2024 & market institutions predict a growth rate of approx 4.7% in the Q3 (Ref China PMI).
2. Ultra long special treasury bonds will continue to be issued in 2025 with optimized investment areas to implement major national strategies & strengthen key areas.
3. Implementing guidelines for consumer goods trading have been fully released. Passenger car retail sales have rebounded significantly & home appliance sales have grown. Efforts are being intensified to increase commodity consumption.
4. The conduct of state authorities in relation to businesses will be further regulated. More inclusive, prudent & flexible enforcement approaches would be implemented to avoid; unlawful enforcement, profit-driven enforcement, arbitrary fines, excessive inspections & unjustified seizures (Ref. SCIO – PRC).

How to grow with the private sector?

The next generation in any society planning to take a social democratic path to stabilize societies may learn from China’s efforts to promote the private sector. In September China issued a circular to allow wholly foreign owned hospitals in certain cities & regions across the country. Sri Lankans who are against privatization & those who wish to promote Sri Lanka for medical tourism may think new with these moves. Foreign invested enterprises are also allowed to carry out the development & application of technologies relating to human stem cells, gene diagnosis & treatment in the pilot free trade zones. China is finalizing its first basic law focused on the development of the private sector & the first draft seeking public inputs was released. The new law features equal treatment & protection of the private sector to ensure fair participation & competition in the market.

It is therefore, expected to improve investments & financing environments for private ventures. Support extended for technological innovations to optimize services & safeguarding the legitimate rights/ interests of their employees will indirectly contribute for conflict prevention. That in turn will accelerate national growth. Special features include; the legal support to private enterprises to invest in strategic emerging industries such as technological research & biotechnology & encouragements to upgrade/ transform traditional industries.

Lessons for the new Constitution

Some of those hoping to contest the general election are discussing a new constitution. The youth therefore, should study more about new laws as they would be managing the society with it if enacted. The Chinese approach to get inputs from various economic entities, private enterprises, industry associations & chambers of commerce on formulating laws, regulations & other normative documents/ judicial interpretations related to production & business activities are therefore worth studying (Ref. Chinese ministry of Justice & National Development & Reform Commission). It will ensure stable economic growth with minimal internal conflicts. Risks of external conflicts may be mitigated if the Belt & Road Initiative is used wisely to connect with the world.

(Views expressed are personal).