Xi's pressure on Chinese firms will only go so far

Significance

Since he took office, private firms have suffered most from attempts to rein in corporate debt, while state firms have benefited from flagship initiatives such as the Belt and Road Initiative and Made In China 2025. Now, a series of reforms and assertive regulatory actions is targeting sectors dominated by private firms, including internet platforms and education.

Impacts

• Private firms will further increase their presence in the Chinese economy, although at a slower pace than before.
• More emphasis will be put on support for small and medium-sized firms as major employers and drivers of economic growth.
• Preferential treatment of state-owned enterprises will remain a pillar of government policy.