When news of President Xi Jinping’s symposium with China’s top business leaders broke last month, speculation was rife over who would be invited.
The guest list would offer clues as to which industries were considered up-and-comers – and which may have fallen from grace – for the country’s economy as it enters a period of transition, especially when compared to who received a summons for a similar event in 2018.
Few anticipated the attendance of any representative from real estate, once a pillar of the economy. With the property sector still in the midst of a challenging downturn and most developers burdened with debt, such an invitation was extremely unlikely.
As China’s top lawmakers meet this week to lay out this year’s policy priorities – which will include fulfilling the goals set in the 14th five-year plan – promoting the private economy is expected to be a top item on the agenda. But some private sector players are set to benefit more from government support than others.
While many have focused on the dichotomy between state-owned enterprises (SOEs) and the private sector – especially as many private firms have struggled – the changing of the guard between new and old industries regardless of ownership, some observers argue, has become the main thrust of China’s economic restructuring.
